PNB Divests Stake in ISARC Following RBI Approval

Punjab National Bank has sold its 21% stake in India SME Asset Reconstruction Company Limited for Rs 34 crore. This sale follows the Reserve Bank of India's approval for a change in the sponsor and equity increase from Authum Investment and Infrastructure Ltd. The finalization took place in May.

In a significant transaction, the state-run Punjab National Bank announced the divestment of its complete 21% stake in India SME Asset Reconstruction Company Limited (ISARC) for Rs 34 crore. The move comes after securing the necessary approvals from the Reserve Bank of India earlier this year.

The bank disclosed that on Tuesday, it finalized the sale of 20.90% of its shareholding, amassing a total of Rs 34.04 crore from the transaction. This sale involved 2.09 crore shares of ISARC at a rate of Rs 16.29 per share.

Previously, the bank had tied up a definitive agreement to sell its entire stake in May, post an equity raising initiative by ISARC from Authum Investment and Infrastructure Ltd. Ahead of this, ISARC's sponsorship was provided by SIDBI, Bank of Baroda, Punjab National Bank, and SIDBI Venture Capital Ltd.

(With inputs from agencies.)