Authum Investment share price jumps over 10% to hit its record high after revising ISARC acquisition terms

Shares of Authum Investment & Infrastructure surged over 10 percent on Wednesday, May 14, touching a fresh all-time high of ₹2,135.95, after the company announced revised terms of its proposed investment in India SME Asset Reconstruction Company Limited (ISARC). The company executed a supplemental agreement on May 13, 2025, which updates the original terms outlined in the agreement signed on October 14, 2024.

Revised terms and deeper stake

As per the new agreement, Authum will subscribe to 13 crore equity shares of ISARC at ₹14.86 per share, based on an updated valuation report, bringing the total subscription amount to ₹193.18 crore. This move will give the company a 56.52 percent stake in ISARC on a fully diluted basis.

In addition to the fresh equity infusion, the company will purchase 2.09 crore equity shares from Punjab National Bank, an existing shareholder of ISARC, at ₹16.29 per share. This translates into a total share purchase consideration of ₹119.32 crore, adding another 31.85 percent to its voting rights in the company.

With both the fresh subscription and share purchase combined, Authum will invest a total of ₹312.5 crore, acquiring 20.32 crore equity shares and holding 88.37 percent of ISARC’s voting rights. The long stop date to complete the transaction has also been extended to July 31, 2025. Upon completion, ISARC will officially become a subsidiary of Authum.

Strategic move into asset reconstruction

ISARC is a registered asset reconstruction company under the SARFAESI Act, 2002, and primarily focuses on securitisation and recovery of financial assets, with a special emphasis on MSMEs. As of March 31, 2024, ISARC reported a net worth of ₹129.68 crore and a turnover of ₹2.47 crore.

The acquisition aligns with Authum’s long-term strategy to expand its presence in the financial services sector, specifically by creating a dedicated platform for turning around distressed assets. According to the company, this platform will be backed by capital strength and operational expertise, enabling it to build a diversified credit business under the asset reconstruction vertical.

All regulatory approvals, including those from the Reserve Bank of India (RBI) for change in sponsor and board appointments, have already been secured through RBI’s letters dated March 25 and March 26, 2025.

Strong stock market performance

The market has responded enthusiastically to these developments. On May 14, shares of Authum jumped 10.3 percent to hit ₹2,135.95, their highest-ever level. The stock has seen a spectacular rally, rising 181 percent from its 52-week low of ₹760, touched in May 2024.

Over the past 12 months, the stock has delivered multibagger returns, soaring 153 percent. In May alone, it has added 23 percent, rebounding from a marginal 0.5 percent dip in April. Earlier, it gained 23 percent in March, 16.5 percent in February, and 0.9 percent in January, highlighting sustained investor interest.

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