IDBI Bank has divested its entire stake of 19.18% in ARCIL to Avenue India Resurgence Pte. Ltd for an undisclosed amount.

With this, the LIC-controlled IDBI Bank ceased to be a sponsor shareholder of Asset Reconstruction Company (India) Ltd (ARCIL).

The sale of shares sold amounted to 6.23 crore. 

In its regulatory filing, IDBI Bank on Wednesday said that it "has sold its entire holding of 6,23,23,800 fully paid-up equity shares constituting 19.18% of the total equity share capital of Asset Reconstruction Company (India) Ltd. (ARCIL) on May 18, 2022."

Earlier on10 March, IDBI Bank had executed an investment agreement to participate in the equity share capital and non-convertible debentures proposed to be issued by National Asset Reconstruction Company Ltd (NARCL). The lender said it would invest over Rs 272 crore to acquire equity stake and subscribe to its bonds.

Two days prior to that, IDBI Bank had executed an investment agreement for participation in the equity share capital of India Debt Resolution Company Ltd (IDRCL).

The bank’s final holding in NARCL and IDRCL will be 5% and 9%, respectively.

The lender said it would invest cash of Rs 137.50 crore to acquire 5% stake and Rs 135 crore to invest in the NCDs of NARCL.

Besides, Rs 4.50 crore will be invested in tranches to acquire 9% of IDRCL, the lender said in March.

NARCL, a government-promoted bad bank, will primarily undertake activities of an asset reconstruction company. IDRCL will act as a debt resolution company.

Incorporated in 2002 as a non-banking finance company (NBFC), ARCIL is owned by State Bank of India (SBI), IDBI Bank, ICICI Bank and Punjab National Bank (PNB), besides strategic foreign investors such as Avenue Indian Resurgence Pte Ltd.