Authum Invests ₹101.63 Cr in ISARC via Rights Issue

Authum Investment and Infrastructure Ltd has committed to a further investment of ₹101.63 crore in its subsidiary, India SME Asset Reconstruction Company Limited (ISARC), executed through a rights issue.

This strategic investment involves Authum subscribing to 40.65 crore equity shares offered by ISARC at an issue price of ₹10 per share. The rights issue is structured on a ratio of two equity shares for every one equity share held.

Key Investment Details

• Investment Amount: ₹101.63 crore
• Shares Subscribed: 40.65 crore equity shares
• Issue Price: ₹10 per share
• Rights Ratio: Two equity shares for every one held
• Initial Payment: ₹101.63 crore (25% of issue price) remitted on August 18

The capital infusion aims to bolster India SME Asset Reconstruction Company’s capital requirements, supporting its general business operations. No government or regulatory approvals are necessary for the completion of this transaction.

ISARC operates as an asset reconstruction company, registered under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It conducts securitisation and asset reconstruction activities as permitted by the Reserve Bank of India.

ISARC Financials & Authum’s Stake

• Majority Stake Acquired: June 17, 2025, by Authum Investment
• Net Worth (March 31, 2026): ₹353.29 crore
• Turnover (FY26): ₹17.42 crore
• Turnover (FY25): ₹21.21 crore
• Turnover (FY24): ₹2.47 crore

Authum had previously acquired a majority stake in ISARC on June 17, 2025, through a combination of share purchases from former promoters and shareholders, alongside a fresh capital infusion. The current transaction is classified as a related party transaction due to ISARC’s subsidiary status but is being executed at arm’s length.

Shares of Authum Investment & Infrastructure Ltd closed at ₹555.00 on the BSE, marking a 0.63% increase following the announcement.