Mentor Capital Sells 3.41% Stake in Authum for ₹1,290 Cr; Plans Growth Through Debt Funding

Mumbai, July 28 —  Authum Investment & Infrastructure Ltd (BSE: 539177, NSE: AIIL) announced that promoter Mentor Capital Ltd divested approximately 3.41% of its equity, selling 58 lakh shares in an open market transaction for around ₹1,307 crore, at an average price of ₹2,253.57 per share. The bulk transaction drew interest from key institutional investors – with Fidelity Investments acquiring 22.67 lakh shares – 1.33% and Goldman Sachs Singapore taking 8.88 lakh shares – 0.52%.

This underscores growing confidence in Authum’s business model and long-term prospects. On the day of the announcement, Authum’s share price slipped 2.44% to close at ₹2,740.65 on the BSE, reflecting some short-term profit booking amid overall positive sentiment around the deal. As of 28 July, the stock closed at ₹2,675.20, down approximately 2.39%, within a day range of ₹2,640–₹2,740.

Strategic Reinvestment of Proceeds

Mentor Capital Ltd has reinvested ₹1,307 crore from its 3.41% stake sale back into Authum Investment & Infrastructure Ltd. This was via a low-interest debt instrument, underscoring its long-term commitment. The infusion, offered at concessional rates, is non-dilutive and aims to strengthen Authum’s balance sheet, reduce financing costs, and fund expansion across retail lending and asset-backed financing.

After a 90-day cooling-off period, the debt may be converted into long-term debt or preference shares, subject to approvals. Analysts view the move as a promoter-led capital support without equity dilution; likely enhancing investor confidence, capital adequacy, and alignment with NBFC regulatory norms.

Growth Outlook and Capital Utilisation

Mentor Capital has reinvested ₹1,307 crore from its 3.41% stake sale in Authum Investment via low-interest debt, aiming to fund growth in lending, ARC, and high-value investments. The move is non-dilutive and enhances liquidity, cash flows, and competitiveness. After a 90-day cooling-off period, the debt may convert to long-term debt or preference shares.

Meanwhile, Authum shares trade near ₹2,684. Goldman Sachs recently picked up ~₹200 crore worth of shares via a bulk deal, reflecting strong institutional confidence.

The company expects the infusion of low-cost capital to significantly bolster its ability to pursue aggressive investments in the current market landscape.

Governance Commitment

Amit Dangi, Whole-Time Director at Authum, stated that the transaction “underscores the promoter group’s continued commitment to the long-term success and growth of Authum,” further emphasising that the move aligns with transparent governance practices and supports strategic expansion initiatives.

About Authum Investment & Infrastructure Ltd

Authum Investment & Infrastructure Ltd is a registered Non-Banking Financial Company (NBFC) listed on both NSE and BSE. It operates across investment, credit, and asset reconstruction verticals. The company has consistently attracted institutional interest owing to its capital efficiency, strategic vision, and governance track record.

REF:https://nsearchives.nseindia.com/corporate/Authum123_28072025150733_REG30MentorShareSale.pdf

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