PNB Divests Entire 21% Stake in ISARC for ₹34 Crore

Punjab National Bank (PNB) has completed the sale of its entire 20.90% equity stake in its associate company, India SME Asset Reconstruction Company Limited (ISARC), as per the filing. The transaction was completed on June 17, 2025, following a definitive agreement entered into by the bank on May 13, 2025.

Deal Details

PNB sold 2.09 crore equity shares at ₹16.29 per share, resulting in total cash consideration of ₹34.04 crore. The stake sale does not fall under the category of related party transactions and was executed independently of any merger or amalgamation scheme.

The shares were purchased by Authum Investment and Infrastructure Ltd., which is not part of PNB’s promoter or group companies.

Regulatory Approval

The Reserve Bank of India had given its approval for the change in ISARC's sponsor and for equity infusion by Authum Investment and Infrastructure Ltd. The RBI clearance was issued on March 25, 2025. This allowed the transaction to proceed.

Company Background

ISARC was set up with sponsorship from SIDBI, Bank of Baroda, Punjab National Bank, and SIDBI Venture Capital Ltd. The company focuses on asset reconstruction in the SME sector. Before the stake sale, PNB was one of the key stakeholders.

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ISARC’s Financial Performance (FY 2024-25)

• Income: ₹36.40 crore
• Expenses: ₹9.35 crore
• Profit Before Tax: ₹27.04 crore
• Profit After Tax: ₹19.79 crore
• Assets: ₹150.08 crore
• Capital: ₹149.48 crore

Punjab National Bank Share Price Performance 

As of 10:12 AM on June 18, 2025, Punjab National Bank share price was trading at ₹106.40, a 0.49% increase; the stock rose 2.46% over the past 6 months and had declined over 17.94% over the past year.

Conclusion

PNB has now fully exited its investment in ISARC, concluding the transaction as per the earlier agreement. The sale was completed in compliance with regulatory requirements and has been disclosed under SEBI's listing obligations.

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