Authum Investment & Infrastructure was incorporated in 1982 and acquired in FY 2019-20 by its promoters Alpana Sanjay Dangi and Mentor Capital. The Company is listed on the National Stock Exchange of India Limited (listed since April 23, 2024) and BSE Ltd. As a registered Non-Banking Financial Company (NBFC), it specializes in investing in the Indian capital markets, as well as offering a wide spectrum of credit products to enhance shareholder value.
Over the years, Authum has evolved into a mature and thriving financial services company from an initial focus on the proprietary Investments Business, to building a fully-enabled Credit Business. Authum now offers a unique combination of an Investments Business and a Credit cum Alternative Assets Business, capable of providing financial solutions across the entire spectrum of capital structure. On the back of this strategic diversification, the company endeavors to evolve and scale its existing businesses, while continuing to build growth platforms.
Business area of the company
Authum Investment & Infrastructure is a non-banking financial company (NBFC) registered with the Reserve Bank of India, with core business operations focused on investing and lending. The company undertakes long-term equity investments across publicly listed and unlisted companies and offer a range of credit and financing solutions.
Business Verticals
Within the Investments Business, Authum has two distinct lines of business, characterized primarily by the size of its shareholding in the investee company and ability to drive:
- Flow Investment: Based on its proprietary research and evaluation framework, Authum generally acquires a sizable shareholding (between 5% to 15% in most cases) in either listed / unlisted entities. The investment thesis may be predicated on a variety of factors such as specific sectoral tailwinds, superior growth prospects of the investee company, or on addressing the dislocation between intrinsic value and the current market value of the investee company.
- Strategic Investments: In certain select cases, based on the potential scope of the opportunity and its conviction, Authum may a acquire substantial shareholding (at least 26% and above) in an investee company. In such cases, Authum's investment thesis is generally predicated on the possible transformative journey of the investee company, which can range across its potential evolution into a market leader, significant business and operational turnaround, or simply sustained long-term outperformance compared to its peers based on the strength of its underlying fundamentals.
Key highlights of the company’s journey
2019-2020:
- Authum Investment & Infrastructure Limited was acquired by the promoters, Alpana Sanjay Dangi and Mentor Capital.
- The net worth of the Company stood at Rs 420 crore at the end of the year.
2020-2021:
- Despite the disruption resulting from the COVID-19 pandemic, along with economic and market volatility, the company ended the year with significant net worth growth.
- Net worth of Rs 1,432 crore at the end of the year.
2021-2022:
- Post-COVID, on the back of a V-shaped recovery of the Indian economy, the company focused on growing its Investments Business, while navigating the pandemic challenges.
- Net worth was Rs 3,121 crore at the end of the year.
2022-2023:
- The Company acquired Reliance Commercial Finance Limited (RCFL) and the assets of Reliance Housing Finance Limited (RHFL) after emerging as the highest bidder following a competitive creditor-driven process.
- Following this acquisition, Authum resolved debt of over Rs 20,000 crore with a consortium of over 20 banks and financial institutions.
- Net worth was Rs 3,416 crore at the end of the year.
2023-2024:
- Pursuant to the strategic acquisitions, the Company diversified into two lines of business, viz. the Investment Business and the Credit Business.
- During this year, the company continued to grow the Investment Business and successfully focused on harvesting recoveries from the acquired portfolio along with a fresh credit deployment in the Credit Business.
- Net worth was Rs 10,345 crore at the end of the year.
2024-25 and beyond:
- The Company’s strategic objective is to build an Integrated Credit Platform through the creation of multiple platforms (with the acquisition of majority stake in India SME Asset Reconstruction Company being a landmark) as a long-term growth roadmap of the Credit Business.
- Net worth was Rs 14,689 crore at the end of the year.
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