LIC-backed IDBI Bank is in talks with US-based Avenue Capital to sell its entire 19.18 per cent stake in India’s oldest stressed asset aggregator Asset Reconstruction Co of India (Arcil), as it looks to monetise its non-core investments, people familiar with the development said.
Avenue, which currently is the single-largest investor in Arcil, with about 27 per cent, will become the largest stakeholder if the sale gets RBI nod.
“This deal will be part of Avenue’s larger play in India’s distressed asset space, in fact, it is also keen to pick up stakes from other lenders too who own stake in Arcil,” said an official with knowledge of the discussions.
Source: Economic Times