Avenue Capital Group entity has proposed to acquire 44.6% in Asset Reconstruction Company (India) Limited (ARCIL) from ICICI Bank Limited (NSEI:ICICIBANK), Punjab National Bank (BSE:532461), IDBI Bank Limited (BSE:500116) and ICICI Home Finance Company Limited for a consideration of nearly INR 8.40 billion, said people aware of the development. Avenue India Resurgence Private Limited, a subsidiary of Avenue Capital, which currently holds a 25% stake in the country's oldest asset reconstruction company (ARC), will increase its stake to 69.6% upon acquiring equity from the four shareholders. The deal is subject to approval from the Reserve Bank of India, the people cited above said.

The enterprise value of ARCIL would be pegged at nearly INR 19.00 billion, one of them said. IDBI Bank, which holds 19.18%, will receive around INR 3.60 billion, ICICI Bank with 13.26% will receive INR 2.50 billion, while PNB with a 10% equity holding will get INR 1.88 billion. ICICI Bank's housing finance subsidiary with 2.26% will earn INR 420 million, one of the persons said.

The transaction will reflect in the earnings of these four shareholders once the deal is closed. The high-level committee of each of the four entities have approved the proposed sale of their ARCIL stakes to Avenue, the same person said. "The bank has not entered into any transaction/agreement to sell its stake in M/s Arcil as on date," PNB said in an email response.

Avenue Capital, ICICI Bank, ICICI Home Fin and IDBI Bank did not respond to requests for comment.