Authum Investment to Acquire SIDBI's ARC Unit for ₹260 Crore.
Banking & Finance
In March 2025, Mumbai (Maharashtra) based Non-Banking Financial Company (NBFC) Authum Investment & Infrastructure Ltd received approval from the Reserve Bank of India (RBI) to acquire a 79.28% stake in India SME Asset Reconstruction Company Ltd (ISARC), an Asset Reconstruction Company (ARC) sponsored by Lucknow, Uttar Pradesh (UP)-based Small Industries Development Bank of India (SIDBI) for ₹260 crore.
- Authum Investment will acquire 56.52% of ISARC through a fresh issuance of 13 crore shares, involving an infusion of ₹170 crore. Additionally, it will purchase another 22.75% stake from existing shareholders.
Main Point :- (i) Upon completion of this transaction, ISARC will become a subsidiary of Authum Investment. The RBI has also granted approval for Authum Investment to nominate two directors to ISARC's board.
(ii) The deal takes place amid a turbulent phase for the Asset Reconstruction Company (ARC) sector, with multiple firms exiting the market.
(iii) Notable departures include Blackstone-backed International Asset Reconstruction Company and Aditya Birla Asset Reconstruction Co. Additionally, Arcion Revitalization (supported by Apollo Global and ICICI Bank) and Lonestar India have also shut down operations.
About SIDBI
Chairman & MD: Manoj Mittal
Headquarters: Lucknow, Uttar Pradesh
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