Promoter entity Mentor Capital Ltd has sold 3.41% stake in Authum Investment & Infrastructure Limited

One of the promoters of Authum Investment & Infrastructure Limited, Mentor Capital Limited, has sold approximately 3.41 % of its stake in Authum Investment & Infrastructure Limited through secondary market transactions. This stake has been acquired by some of the leading Foreign Institutional Investors (FIIs), including reputed names such as Fidelity Global, Isometry Capital LLC and Domestic mutual fund. The stake sale has generated proceeds of approximately ₹1,290 crores for Mentor Capital Limited. This transaction represents a strong vote of confidence from institutional investors in the long-term potential and business model of Authum.

Further, in a strategic decision aimed at reinforcing the growth of the Company, Mentor Capital Limited has infused the entire proceeds from the stake sale into Authum by way of a debt instrument. The said debt infusion will be extended at a minimum interest rate, substantially lower than prevailing market rates. Further post cooling off period of 90 days, the promoter is committed to convert the same funds in the form of long-term Debt or through preference shares in the Company, subject to its approval from shareholders / regulators and all the required compliances.

This infusion will act as a growth catalyst for Authum, providing additional liquidity to pursue expansion of our core business activities including investments, and strengthening of our credit and ARC platform. The deployment of such long-term, low-cost capital will enhance our competitiveness, improve profitability metrics, and enable us to respond swiftly to high-value investment opportunities in the current market landscape. From a governance and transparency standpoint, this transaction underscores the promoter group's continued commitment to the long-term success and growth of Authum. We believe that this development, combining the entry of prestigious global institutional investors with fresh capital infusion by the promoter group, positions Authum for its next phase of strategic expansion and value creation.

This intimation is being made in the interest of full disclosure and in keeping with our commitment to transparent communication with all stakeholders.

Source : Equity Bulls

Keywords

AuthumInvestmentandInfrastructure StakeSale PromoterEntity MentorCapital