Update on Acquisition- India SME Asset Reconstruction Company Limited
Awaiting price reaction for this filing.
Authum Investment & Infrastructure has signed a 1st Supplemental Agreement revising its earlier acquisition deal for India SME Asset Reconstruction Company Limited (ISARC). The subscription price has been set at Rs. 14.86 per share, taking the total fresh investment to Rs. 193.18 crore for 56.52% voting rights. The deal also now includes an additional 2.09 crore shares from Punjab National Bank, taking the secondary purchase to 7.32 crore shares at Rs. 16.29 each, worth Rs. 119.32 crore (31.85% voting rights). Altogether, Authum will invest Rs. 312.50 crore to acquire 88.37% in ISARC, making it a subsidiary. RBI approvals for change in sponsor and appointment of directors have already been received, and the long stop date has been extended to July 31, 2025.
Authum is committing over Rs. 312 crore to enter the asset reconstruction business through ISARC, which will become its subsidiary. This is a significant diversification move into the distressed assets and MSME NPA space, backed by strong institutional sponsors like SIDBI, PNB, and BOB, and could reshape the company's long-term business mix.