Punjab National Bank Divests Stake in ISARC for Rs 34.04 Crore

Punjab National Bank has announced its strategic decision to sell its entire stake in India SME Asset Reconstruction Company Ltd for Rs 34.04 crore. This move follows the Reserve Bank of India's approval for a change in sponsor and is expected to finalize by the end of the June quarter.

Punjab National Bank (PNB) has made a significant move by entering into an agreement to divest its entire stake in India SME Asset Reconstruction Company Ltd (ISARC) for a transaction worth Rs 34.04 crore. This strategic decision was disclosed in a regulatory filing on Tuesday, with the transaction expected to finalize by the end of the June quarter.

PNB's decision follows the Reserve Bank of India's approval in March for a change in the sponsor of the asset reconstruction company, with equity sourced from Authum Investment and Infrastructure Limited. The stake sale comprises 2.09 crore shares at a rate of Rs 16.29 per share.

The ISARC is backed by sponsors such as SIDBI, Bank of Baroda, Punjab National Bank, and SIDBI Venture Capital Ltd. Following the announcement, PNB's shares saw a 1.93% rise, closing at Rs 97.65 on the Bombay Stock Exchange.

(With inputs from agencies.)