Authum Investment Share Price Hits Record High After ISARC Deal Update

Market Performance

Authum Investment's share price surged over 10.3% on May 14, touching an all-time high of ₹2,135.95. This rally followed the company's revised terms for its planned acquisition of India SME Asset Reconstruction Company Ltd (ISARC).

• 52-week low: ₹760 (May 2024)
• Current peak: ₹2,135.95
• 12-month gain: 153%
• May rally: 23% (so far)
• YTD momentum:
  • January: +0.9%
  • February: +16.5%
  • March: +23%
  • April: -0.5%

This strong market response reflects growing investor confidence in Authum's strategic expansion.

Main News

The jump in Authum Investment's share price comes after the company revised its investment terms in ISARC through a supplemental agreement signed on May 13, 2025.

Key Highlights of the Deal:

• Fresh Equity Subscription:
  • Shares: 13 crore
  • Price per share: ₹14.86
  • Total Investment: ₹193.18 crore
  • Stake Acquired: 56.52% (fully diluted basis)
• Share Purchase from Punjab National Bank:
  • Shares: 2.09 crore
  • Price per share: ₹16.29
  • Total Value: ₹119.32 crore
  • Additional Voting Rights: 31.85%
• Total Investment in ISARC: ₹312.5 crore
• Total Shares Acquired: 20.32 crore
• Final Voting Rights: 88.37%
• Deal Completion Deadline: Extended to July 31, 2025

After the transaction closes, ISARC will become a subsidiary of Authum Investment.

Company Details

ISARC (India SME Asset Reconstruction Company Ltd) is a RBI-registered asset reconstruction firm under the SARFAESI Act, 2002, focusing on the securitization and recovery of stressed financial assets, especially in the MSME sector.

ISARC Financial Snapshot (as of March 31, 2024):

• Net Worth: ₹129.68 crore
• Turnover: ₹2.47 crore

The acquisition is a part of Authum's broader strategy to strengthen its presence in financial services. By entering the asset reconstruction business, Authum aims to create a robust credit platform driven by capital strength and operational expertise.

All regulatory approvals, including those from the Reserve Bank of India (RBI) regarding sponsor changes and board appointments, have been obtained.

Summary

The sharp surge in Authum Investment's share price is primarily attributed to the company's revised Investment in ISARC, marking a significant move into the asset reconstruction segment. With a substantial stake and voting control in ISARC, Authum strategically positions itself in the financial recovery space, supported by sustained investor interest and strong stock market performance.