Bank of Baroda subscribes to 99,000 shares of IDRCL

Public sector Bank of Baroda on Friday said it has subscribed to 99,000 shares of asset reconstruction company India Debt Resolution Company Ltd (IDRCL).

The acquisition is subject to execution of investment agreement.

"Bank of Baroda has subscribed to 99,000 shares of India Debt Resolution Company Ltd (IDRCL)," the bank said in a regulatory filing.

The bank further said its equity stake of 12.30 per cent in IDRCL will be reduced to 9.90 per cent by March 31, 2022.

The bank said the shares are to be subscribed at Rs 10 per equity share.

IDRCL is yet to become operational. As an asset management company, it will manage the asset and engage market professionals and turnaround experts for debt resolution.

Public sector banks and public financial institutions will hold a maximum of 49 per cent stake in IDRCL and the rest will be with private sector banks.