Choice International Ltd said Monday its full-service brokerage arm Choice Equity Broking Pvt. Ltd has agreed to acquire wealth management firm Arete Capital Services Pvt. Ltd for Rs 36 crore ($4.15 million).
The acquisition of Arete, which has assets under management of Rs 5,151 crore, will strengthen Choice Broking’s position in the wealth management and investment advisory space, Choice International said in a stock-exchange filing. It will also enhance the unit’s ability to serve high-net-worth individuals and institutional clients.
The acquisition will increase Choice Broking’s total wealth management AUM from Rs 1,090 crore to Rs 6,241 crore, the company said.
The deal value is a tad less than a fourth of Arete Capital's revenue of Rs 153 crore for 2023-24. The company's revenue slumped from Rs 398 crore in 2022-23 and Rs 773 crore the year before, according to the stock-exchange filing.
Arete Capital was established in 2000 as part of the Arete Group to cater to investment requirement of banks, institutions, corporate houses, family offices, retirement funds, and HNIs.
Choice International, a financial services company that was incorporated in 1992, has a strength of over 2,500 employees spread across 28 branches in India and offices in London, Hong Kong, Dubai, and Nairobi. Choice Equity Broking provides equity, commodity, and currency trading services. It has a market capitalisation of over Rs 9,830 crore, according to BSE data.
Choice International posted consolidated revenue from operations of Rs 657.38 crore for the nine months ended Dec. 31, 2024, up from Rs 536.14 crore a year earlier. Consolidated net profit increased to Rs 109.19 crore from Rs 91.46 crore a year earlier.
