Punjab National Bank (PNB) has signed an agreement to sell its entire stake in India SME Asset Reconstruction Company Ltd (ISARC) for ₹34.04 crore. The bank disclosed the development in a regulatory filing dated May 13, 2025.
As of 9:55 AM on May 14, 2025, Punjab National Bank (PNB) share price was trading at ₹98, a 0.33% increase, with a 1.30% decline over the past six months and a 21.91% drop over the past year,
PNB will offload 2.09 crore shares at a price of ₹16.29 per share. The total transaction value stands at ₹34.04 crore. The deal is expected to be completed by the end of the June quarter of the current financial year.
The Reserve Bank of India had granted approval in March 2025 for a change in the sponsor of ISARC. The approval also included permission for an equity infusion by M/s Authum Investment and Infrastructure Ltd, which will now acquire PNB’s stake.
ISARC is an asset reconstruction company focused on resolving distressed loans in the SME sector. It is jointly sponsored by SIDBI, Bank of Baroda, Punjab National Bank, and SIDBI Venture Capital Ltd. The company reported the following financials for FY24:
The transaction is scheduled to close by the end of Q1 FY26. With this, PNB exits its investment in ISARC, following necessary regulatory clearances and internal approvals. PNB clarified that the stake sale is not a related-party transaction. It does not fall under any merger or slump sale category.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 14, 2025, 1:50 PM IST
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