News

Authum Investment to Acquire SIDBI's ARC Unit for ₹260 Crore.

Banking & Finance | Dated: 31 Mar 2025

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.

🎯 Key Highlights:

- 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.

💡 Other Important Facts:

(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.

📚 Test Your Knowledge:

What is the total amount Authum Investment & Infrastructure Ltd will pay for the acquisition of ISARC’s 79.28% stake recently?

Correct Answer: ₹260 Crore

🚀 Quick Recap:

About SIDBI

Chairman & MD: Manoj Mittal
Headquarters: Lucknow, Uttar Pradesh