Authum to pump ₹102 crore into asset reconstruction arm ISARC
What's the deal? Authum Investment & InfrastructureDealroom has a profile for this one. Try Dealroom → will invest ₹101.63 crore ($10.6 million) in its subsidiary India SME Asset Reconstruction Company (ISARC)Dealroom has a profile for this one. Try Dealroom → through a rights issue, the company disclosed on August 18, 2026. It has agreed to subscribe to 40.65 crore equity shares at ₹10 apiece, offered in a two-for-one ratio.
How it works: Authum has paid 25% of the issue price — ₹2.50 per share, or ₹101.63 crore — as application money. Further payments will follow once ISARCDealroom has a profile for this one. Try Dealroom → issues call letters, with the exchanges to be updated accordingly.
What's the endgame? The capital is meant to help ISARC meet its funding needs for general business operations. Authum already holds 20.33 crore shares, or 88.37% of ISARC's paid-up capital, having acquired a majority stake effective June 17, 2025.
By the numbers: As of March 31, 2026, ISARC reported a net worth of ₹353.29 crore and turnover of ₹17.42 crore, down from ₹21.21 crore in FY25 and up from ₹2.47 crore in FY24.
ISARC is registered with the Reserve Bank of India as an asset reconstruction company under the SARFAESI Act, 2002, handling securitisation and asset reconstruction. No government or regulatory approval was required for the investment.
Worth noting: The transaction is a related-party deal, as ISARC is Authum's subsidiary. The company said it is being carried out at arm's length. Shares of Authum ended at ₹555.00 on the BSE, up 0.63%.
The signal: The rights issue marks a step-up in Authum's commitment to ISARC, following its 2025 acquisition and fresh capital infusion. It underscores a pattern of doubling down on the asset reconstruction space, where India's banks continue to offload stressed loans.
Read more: CNBC TV18
Image credit: Generated with Gemini
