PNB inks pact to divest entire stake in ISARC for Rs 34 cr

New Delhi: Punjab National Bank (PNB) on Tuesday said it has entered into an agreement to sell its entire stake in India SME Asset Reconstruction Company Ltd (ISARC) for Rs 34.04 crore.

The bank said the Reserve Bank of India in March had granted approval for change in sponsor of the asset reconstruction company and equity raise from M/s Authum Investment and Infrastructure Limited.

"The bank has entered into a definitive agreement...today, i.e. 13.05.2025, to sell its entire stake in M/s India SME Asset Reconstruction Company Limited (ISARC), an associate company of the bank," PNB said in a regulatory filing.

PNB will sell 2.09 crore shares at Rs 16.29 per share, resulting in a sale consideration of over Rs 34.04 crore.

The stake sale is expected to be completed by the end of the June quarter.

ISARC is sponsored by SIDBI, Bank of Baroda, Punjab National Bank, and SIDBI Venture Capital Ltd.

Shares of PNB settled at Rs 97.65 apiece, up 1.93 per cent over the previous close on the BSE.