Authum Investment has agreed to subscribe to 40.65 crore equity shares offered by ISARC at an issue price of ₹10 per share. The rights issue is offered in the ratio of two equity shares for every one equity share held.
The company has paid 25% of the issue price, or ₹2.50 per share, aggregating to ₹101.63 crore as application money on August 18. Further payments will be made after receipt of call letters from India SME Asset Reconstruction Company, and the company said it will update the stock exchanges accordingly.
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Authum currently holds 20.33 crore equity shares, representing 88.37% of India SME Asset Reconstruction Company’s total issued and paid-up share capital.
The investment is being made to help India SME Asset Reconstruction Company meet its capital requirement for general business operations. No government or regulatory approval is required for the investment, according to the filing.
ISARC is an asset reconstruction company registered under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and is engaged in securitisation and asset reconstruction activities as permitted by the Reserve Bank of India.
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As of March 31, 2026, ISARC had a net worth of ₹353.29 crore and turnover of ₹17.42 crore. Its turnover stood at ₹21.21 crore in FY25 and ₹2.47 crore in FY24.
India SME Asset Reconstruction Company was incorporated on April 11, 2008, and is registered with the Reserve Bank of India as an Asset Reconstruction Company. Authum acquired a majority stake in India SME Asset Reconstruction Company effective June 17, 2025, through the purchase of shares from erstwhile promoters and shareholders, along with a fresh capital infusion.
The transaction is a related party transaction as India SME Asset Reconstruction Company is a subsidiary of Authum. The company said the transaction is being undertaken at arm’s length.
Shares of Authum Investment & Infrastructure Ltd ended at ₹555.00, up by ₹3.50, or 0.63%, on the BSE.
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