Authum Investment & Infrastructure Limited (AIIL) has disclosed an investment in its subsidiary, India SME Asset Reconstruction Company Limited (ISARC), through a rights issue offering. The disclosure is made pursuant to Regulation 30(6) read with Para A(1) in Part A of Schedule III of the SEBI (LODR) Regulations, 2015, as amended, along with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023 and SEBI Master Circular No HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
Current Holding Structure
AIIL currently holds 20,32,50,000 equity shares in ISARC, representing 88.37% of the total issued and paid-up share capital.
Rights Issue Details
Pursuant to the Rights Issue offered by ISARC, AIIL has agreed to subscribe to 40,65,00,000 equity shares offered in the ratio of 2 (Two) Equity Shares for every 1 (One) Equity Share held. The issue price is Rs. 10 per equity share.
Payment Details
AIIL has made a payment of 25% of the issue price, amounting to Rs. 2.50 per equity share, aggregating to Rs. 1,01,62,50,000 (Rupees One Hundred and One Crore Sixty-Two Lakhs and Fifty Thousand) as application money on August 18, 2026. The company will make further payments post receipt of call letters from the subsidiary and will update the stock exchanges accordingly.
Target Entity Information
India SME Asset Reconstruction Company Limited (ISARC) is an asset reconstruction company registered under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Financial Details of ISARC:
- Net Worth as of March 31, 2026: Rs. 353.29 Crores
- Turnover as of March 31, 2026: Rs. 17.42 Crores
Historical Turnover:
- FY 2025-26: Rs. 17.42 Crores
- FY 2024-25: Rs. 21.21 Crores
- FY 2023-24: Rs. 2.47 Crores
ISARC operates exclusively in India.
Related Party Transaction Status
The transaction falls within the ambit of related party transactions since ISARC is a subsidiary of AIIL. The company states that the transaction is conducted at arm's length. Save and except what is mentioned, the Promoter/Promoter Group/Group Companies are not interested in ISARC. Except to the extent of shares held by AIIL in ISARC, the company has no other interest in ISARC.
Industry Classification
ISARC belongs to the asset reconstruction industry, engaged in the business of securitization/asset reconstruction as per the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.