Pegasus Asset Reconstruction Sells 26% Stake Deutsche Bank

A subsidiary of Germany's Deutsche Bank AG set to pick up a 26% stake in Pegasus Asset Reconstruction Company. Pegasus is one of the first private asset reconstruction firms to get RBI's permission to operate and its promoters are Bhimjyani group and stockbroker Rakesh

Jhunjhunwala. Singapore-based Deutsche Asia Pacific Holdings (DAPH) will pick up the stake in Pegasus, reports Business Standard.

With the stake sale Jhunjhunwala shareholding in the company will come down 27.74%, while the holding of the Bhimjyani family will be 36.28%.

Recently Tata Capital, ICICI Bank and HDFC Bank also invested in Rs 90 crore in International Asset Reconstruction Company.

Pegasus has assets in sectors such as automobiles, steel, paper mill, pharmaceuticals and textile sectors.

The present downturn will see more ARC firms with a lot of new entrants coming up. JM Financial has received its licence RBI to enter this business.

Edelweiss Capital is also venturing into asset reconstruction business, for which it's on the lookout for foreign partners. It has also hired Siby Antony to head this business. Small Industries

Development Bank of India (SIDBI) is planning an ARC unit which will be operational in next 2-3 months.

Kotak Mahindra Bank has also received RBI's regulatory approval to set up an ARC unit and will completely own it, but will bring down its holding to 49% as per RBI guidelines.

Reliance Capital also received a licence in February this year to set up an ARC. ICICI-promoted Asset Reconstruction Company of India (Arcil) is said to be one of the biggest player in this field in India. There are also several other players such as Dhir & Dhir Asset Reconstruction and Securities and Rakesh Jhunjhunwalla promoted Pegasus.

There are nine ARCs in India including ARCIL, UTI-led ASREC, IFCI-promoted Assets Care Enterprise (ACE), Dhir & Dhir, International Asset Reconstruction Company and Pegasus Asset Reconstruction Company.

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