Bank of Maharashtra announced on Thursday that it will sell its entire 4% stake in India SME Asset Reconstruction Company for almost Rs 4 crore.

In a regulatory filing, Bank of Maharashtra (BoM) announced the execution of a share purchase agreement dated April 6, 2022, for the sale of the entire equity stake of 4% in India SME Asset Reconstruction Company Ltd (ISARC).

The bank's 4% stake, or 40,00,000 equity shares, would be sold for Rs 9.80 per share for Rs 3.92 crore in cash, according to the statement. The sale of ISARC's stake is subject to RBI approval for a change in ISARC's sponsor shareholder. By the end of December 2022, the transaction should be finalised.

ISARC's overall revenue for the fiscal year ended March 2021 was Rs 11.09 crore, with a net profit of Rs 0.36 crore. In FY20, it lost Rs 8.39 crore, and in FY19, it lost Rs 9.21 crore.

ISARC is the country's first Asset Reconstruction Company (ARC), with a large number of public sector banks and undertakings supporting it. It focuses on MSME NPA resolution. SIDBI, Bank of Baroda, Punjab National Bank, and SIDBI Venture Capital Ltd are among the sponsors of the ARC.

On the BSE, a share of BoM finished at Rs 18.80, up 0.27 percent from the previous closing of Rs 18.75.

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