ARCIL files IPO papers for OFS of 10.54 crore shares

Upcoming IPO, ARCIL IPO: Avenue Capital Group-backed Asset Reconstruction Company (India) Ltd (ARCIL) has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), aiming to mobilise funds through a complete offer for sale (OFS).

ARCIL, India’s first incorporated asset reconstruction company, focuses on acquiring and resolving stressed assets from banks and financial institutions.

The proposed IPO comprises a sale of up to 10.54 crore equity shares by existing promoters and shareholders, according to the draft red herring prospectus (DRHP) filed on Friday (August 1).

Here is a summary of the OFS details:

• Avenue Capital, via its affiliate Avenue India Resurgence Pte, will sell up to 6.87 crore shares
• SBI will offload 1.94 crore shares
• Federal Bank plans to sell 10.35 lakh shares
• Singapore’s sovereign wealth fund GIC, through Lathe Investment Pte Ltd, is exiting its stake by offering up to 1.62 crore shares, equivalent to a 5 per cent stake in the company

ARCIL financial performance

According to a CRISIL report, ARCIL was the second most profitable asset reconstruction company in India in FY24, reporting a net profit of Rs 305.34 crore.

It was also the second largest by assets under management (AUM), with Rs 15,230 crore, and had the second highest net worth among private ARCs at Rs 2,462.5 crore as of 31 March 2024.

By 31 March 2025, ARCIL had acquired principal debt worth Rs 72,657 crore at a cost of Rs 38,156 crore—representing 52.51 per cent of the total—and made recoveries of Rs 28,460 crore and its total borrowings stood at Rs 305.99 crore.

BRLMs, registrar

IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial are acting as the book-running lead managers for the IPO, while MUFG Intime India is serving as the registrar. The company’s shares are proposed to be listed on both the BSE and NSE.

About ARCIL

Established in 2003 after registering with the Reserve Bank of India under the SARFAESI Act, ARCIL completed its first acquisition of a stressed asset in December 2003. Over the years, it has played a pivotal role in debt recovery and resolution through asset restructuring, enforcement of security rights, and settlements.

ARCIL competes with leading players such as Edelweiss ARC, JM Financial ARC, ACRE, Phoenix, and Omkara.