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What is the story about?
The ₹733 crore Initial Public Offering (IPO) of Asset Reconstruction Company of India Ltd. (ARCIL) will open for subscription on Wednesday, September 9, making it the first Indian ARC to opt for a public listing.
Since the entire issue is an Offer For Sale (OFS), the company will not be receiving any proceeds from the share sale.
Avenue India Resurgence Pte. Ltd., and State Bank of India, classified as promoters of the company, along with Lathe Investment Pte. Ltd. and Federal Bank, classified as investors, will be the selling shareholders in this Offer For Sale.
How Is The Asset Reconstruction Company IPO Priced?
Asset Reconstruction Company's IPO has been priced between ₹132 to ₹139 per share.
For a retail investor, the minimum lot size will be 107 shares, which will entail a minimum investment of ₹14,873. Investors can then bid in multiples of 107 shares thereafter.
For small HNIs, the minimum lot size will be 1,498 shares which will entail an investment of ₹2,08,222, while for large HNIs, the minimum lot size will be 7,276 shares worth ₹10.11 lakh.
35% of the IPO is reserved for retail investors, 50% is reserved for the institutional bidders (QIBs), while the rest is for non-institutional investors (NIIs).
Each share of ARCIL will carry a face value of ₹10 each.
IIFL Capital, IDBI Capital and JM Financial are the Book Running Lead Managers of this issue.
At the upper end of the price band, the company will have a market capitalization of ₹4,516 crore.
What Does Asset Reconstruction Company Do?
Asset Reconstruction Company of India Ltd. is one of India's leading ARCs and is registered with the Reserve Bank of India under the SARFESI Act.
The company acquires Non-Performing Assets (NPAs) and stressed financial assets from commercial banks, financial institutions and non-bank lenders (NBFCs), and executes their resolution through restructuring, legal enforcement, settlements and recovery mechanism.
ARCIL operates in three verticals, corporate loans, SME & Other loans, and Retail loans. It gets majority of its revenue from trust management fees and returns on its Security Receipts (SR) investments.
How Do The ARCIL Financials Stack Up?
Over the last three years, ARCIL's revenue has grown from ₹574.1 crore in financial year 2024 to ₹785 crore in financial year 2026. Its operating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) has also increased to ₹589 crore from ₹416.4 crore in financial year 2024.
EBITDA margins for the company have been a little volatile, rising from 53.18% in financial year 2024 to 57% the year after, but then narrowing significantly to 51.95% in financial year 2026.
Asset Reconstruction Company does not have any direct listed peer for comparison.
What Are The Risk Factors Highlighted In The ARCIL RHP?
The entire issue is an offer for sale (OFS), which means that the company will not be receiving any proceeds from the issue.
Interestingly, 34% of the company's AUM is more than eight years old, which is past the window where management fees are usually charged.
An inability to source and win assets at attractive prices could constrain the company's growth and competitive position, as highlighted in the RHP as a risk factor.
As of March 31, 2026, stressed assets in the corporate loan vertical represented 68.75% of the total AUM, compared to 75.48% in 2025 and 78.51% in 2024.
Should You Subscribe Or Avoid The Asset Reconstruction Company IPO?
SBI Securities has a "NEUTRAL" rating on the ARCIL IPO, stating that at the upper end of the price band, the company is valued at 1.5 times its financial year 2026 price-to-book.
"We believe that the business is lumpy in nature and is not a steady compounding financial services business," the brokerage said, adding that it would want to track the company's performance after its listing for a few quarters before turning constructive.
What Are The GMP Trends Indicating For Asset Reconstruction Company?
According to reports, the Grey Market Premium (GMP) in the unlisted market for ARCIL is currently at ₹27 per share, indicating a premium of close to 20% from its issue price. However, it must be noted that the GMP rates are speculative in nature and the actual listing price could differ from the GMP rates.
Since the entire issue is an Offer For Sale (OFS), the company will not be receiving any proceeds from the share sale.
Avenue India Resurgence Pte. Ltd., and State Bank of India, classified as promoters of the company, along with Lathe Investment Pte. Ltd. and Federal Bank, classified as investors, will be the selling shareholders in this Offer For Sale.
How Is The Asset Reconstruction Company IPO Priced?
Asset Reconstruction Company's IPO has been priced between ₹132 to ₹139 per share.
For a retail investor, the minimum lot size will be 107 shares, which will entail a minimum investment of ₹14,873. Investors can then bid in multiples of 107 shares thereafter.
For small HNIs, the minimum lot size will be 1,498 shares which will entail an investment of ₹2,08,222, while for large HNIs, the minimum lot size will be 7,276 shares worth ₹10.11 lakh.
35% of the IPO is reserved for retail investors, 50% is reserved for the institutional bidders (QIBs), while the rest is for non-institutional investors (NIIs).
Each share of ARCIL will carry a face value of ₹10 each.
IIFL Capital, IDBI Capital and JM Financial are the Book Running Lead Managers of this issue.
At the upper end of the price band, the company will have a market capitalization of ₹4,516 crore.
What Does Asset Reconstruction Company Do?
Asset Reconstruction Company of India Ltd. is one of India's leading ARCs and is registered with the Reserve Bank of India under the SARFESI Act.
The company acquires Non-Performing Assets (NPAs) and stressed financial assets from commercial banks, financial institutions and non-bank lenders (NBFCs), and executes their resolution through restructuring, legal enforcement, settlements and recovery mechanism.
ARCIL operates in three verticals, corporate loans, SME & Other loans, and Retail loans. It gets majority of its revenue from trust management fees and returns on its Security Receipts (SR) investments.
How Do The ARCIL Financials Stack Up?
Over the last three years, ARCIL's revenue has grown from ₹574.1 crore in financial year 2024 to ₹785 crore in financial year 2026. Its operating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) has also increased to ₹589 crore from ₹416.4 crore in financial year 2024.
EBITDA margins for the company have been a little volatile, rising from 53.18% in financial year 2024 to 57% the year after, but then narrowing significantly to 51.95% in financial year 2026.
Asset Reconstruction Company does not have any direct listed peer for comparison.
What Are The Risk Factors Highlighted In The ARCIL RHP?
The entire issue is an offer for sale (OFS), which means that the company will not be receiving any proceeds from the issue.
Interestingly, 34% of the company's AUM is more than eight years old, which is past the window where management fees are usually charged.
An inability to source and win assets at attractive prices could constrain the company's growth and competitive position, as highlighted in the RHP as a risk factor.
As of March 31, 2026, stressed assets in the corporate loan vertical represented 68.75% of the total AUM, compared to 75.48% in 2025 and 78.51% in 2024.
Should You Subscribe Or Avoid The Asset Reconstruction Company IPO?
SBI Securities has a "NEUTRAL" rating on the ARCIL IPO, stating that at the upper end of the price band, the company is valued at 1.5 times its financial year 2026 price-to-book.
"We believe that the business is lumpy in nature and is not a steady compounding financial services business," the brokerage said, adding that it would want to track the company's performance after its listing for a few quarters before turning constructive.
What Are The GMP Trends Indicating For Asset Reconstruction Company?
According to reports, the Grey Market Premium (GMP) in the unlisted market for ARCIL is currently at ₹27 per share, indicating a premium of close to 20% from its issue price. However, it must be noted that the GMP rates are speculative in nature and the actual listing price could differ from the GMP rates.
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