IPO Overview
Incorporated in 2002, Asset Reconstruction Company (India) Limited — commonly known as Arcil — was the first asset reconstruction company to be established in India. It received its certificate of registration from the Reserve Bank of India (RBI) to commence operations in August 2003. The company specialises in acquiring and resolving distressed and non-performing financial assets across corporate, SME, and retail loan segments from banks, NBFCs, housing finance companies, and other financial institutions. It earns fee income and investment income by implementing resolution strategies such as restructuring, enforcement, settlement, recovery, and collection measures. As of FY25, Arcil ranked as the second-largest Asset Reconstruction Company in India by assets under management, with AUM of ₹16,852.6 crore.
The Arcil IPO will mark the first listing of an asset reconstruction company on Indian stock exchanges. The IPO is entirely an Offer for Sale of 5.27 crore equity shares, with no fresh issue component. The price band is set at ₹132 to ₹139 per share. At the upper end, Arcil is valued at around ₹733 crore. The IPO opens on September 9, 2026 and closes on September 11, 2026, with shares expected to list on BSE and NSE on September 17, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 8 September 2026 |
| IPO Open Date | 9 September 2026 |
| IPO Close Date | 11 September 2026 |
| Allotment Date | 15 September 2026 (Expected) |
| Listing Date | 17 September 2026 (Tentative) |
| Price Band | ₹132 – ₹139 per share |
| Face Value | ₹10 per share |
| Lot Size | 107 shares |
| Minimum Investment (Retail) | ₹14,873 (1 lot) |
| Maximum Investment (Retail) | ₹1,93,349 (13 lots) |
| Issue Size | ₹732.97 crore |
| Fresh Issue | Nil |
| Offer For Sale (OFS) | 5,27,31,946 shares (₹732.97 crore) |
Note: The entire IPO is an Offer for Sale. The company will not receive any IPO proceeds — all funds will go to the selling shareholders.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
The IPO is structured as a pure Offer for Sale, under which shares will be sold by the promoters and other existing investors. Avenue Capital, through its unit Avenue India Resurgence Pte. Ltd., will offload 6.87 crore shares; SBI will sell 1.94 crore shares; Lathe Investment Pte. Ltd. will sell 1.62 crore shares; and Federal Bank will sell 0.10 crore shares.
Avenue Capital, through Avenue India Resurgence Pte. Ltd., holds 69.73% in Arcil, while SBI owns 19.95%. Other investors include Lathe Investment Pte. Ltd., Federal Bank, Karnataka Bank, and South Indian Bank.
Objects of the Issue (Fund Utilization)
Since the IPO is entirely an OFS, the company will not receive any proceeds from the public issue. The primary objective of the issue is to carry out the divestment of 5,27,31,946 equity shares by the selling shareholders, including Avenue India Resurgence and State Bank of India, providing them an exit and liquidity on their investment.
Lead Managers & Registrar
- Book Running Lead Managers: IIFL Capital Services Ltd., IDBI Capital Markets & Securities Ltd., and JM Financial Ltd.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
Promoters & Management
The promoters of Arcil are Avenue India Resurgence Pte. Ltd. and State Bank of India. As of August 1, 2025, promoters held a combined 89.68% stake in Arcil. Post-IPO, the promoters will remain the majority shareholders and continue to exercise significant control over company operations.
Key Management:
- Chairman: Mr. Narayanan Subramaniam
- Managing Director: Mr. Phanindranath Kakarla
Company Details
Arcil acquires stressed secured and unsecured assets from banks, NBFCs, housing finance companies, and other financial institutions. Its three principal business verticals are corporate loans, SME and other loans, and retail loans. The company earns fee income and investment income by acquiring stressed assets and implementing suitable resolution strategies. These include restructuring, enforcement, settlement, recovery, and collection measures. As of March 31, 2026, Arcil operated through 13 offices across 12 states and employed 206 permanent personnel.
Sectors / Asset Classes Served:
- Corporate Loans (Large & Mid-Sized)
- SME & MSME Loans
- Retail Loans (including home loans, personal loans)
- Early-Stress Collections
Key Capabilities:
- Established relationships with a wide range of banks, financial institutions, NBFCs and housing finance companies, supporting its stressed asset acquisition business. The company has focused on expanding its presence in the retail loan segment and uses legal mechanisms, collection infrastructure, and data analytics to support asset resolution.
- Exceptionally clean balance sheet with 0.39x standalone Debt-to-Equity and an industry-leading standalone RoA of 11.73% in FY25.
Certifications / Status:
- India’s first RBI-registered Asset Reconstruction Company
- First-of-its-kind public listing in India’s distressed asset management market
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹581.8 | ₹329.5 |
| FY25 | — | — |
| FY26 | ₹721.7 | ₹351.7 |
Key Financial Metrics
- Revenue increased by 24% to ₹721.7 crore in FY26, compared with ₹581.8 crore in FY24. Profit grew by 6.7% to ₹351.7 crore in FY26 from ₹329.5 crore in the prior year.
- At ₹139 per share, the IPO is priced at approximately 11.08 times FY26 earnings and around 1.47 times NAV.
- EBITDA Margin: 73.82% | RoA: 11.73% (FY25)
- Borrowings increased from ₹305.93 crore in FY25 to ₹1,205.50 crore in FY26 — a significant rise that warrants investor attention.
Company Strengths
- India’s first asset reconstruction company — established lender relationships and experience across corporate, SME, and retail loans provide a strong competitive moat.
- First-of-its-kind public listing in India’s distressed asset management market — potential upside through scarcity premium as the only listed domestic ARC.
- Strong and consistent profitability with an industry-leading RoA of 11.73% and EBITDA margin of 73.82%.
- Expanding presence in the retail loan segment with use of data analytics and legal mechanisms to support asset resolution.
- Backed by SBI and Avenue Capital Group — strong institutional parentage providing credibility, deal flow, and financial stability.
- Operates across 13 offices in 12 states with established infrastructure for stressed asset acquisition and resolution.
Key Risks & Challenges
- The IPO is entirely an Offer for Sale — Arcil will not receive fresh capital from the IPO. It is primarily an exit for existing shareholders and will not directly strengthen Arcil’s balance sheet.
- Borrowings rose sharply from ₹305.93 crore to ₹1,205.50 crore during FY26 — a near 4x increase that is the principal financial concern for prospective investors.
- Revenue grew 24% in FY26, but PAT grew only 6.7% — indicating rising costs and compressing profit growth despite healthy top-line performance.
- Business is inherently cyclical and dependent on the volume of stressed assets available for acquisition — slowdown in NPA creation by banks could compress deal flow.
- Despite partial exit, Avenue India and SBI will continue to hold majority stake and exercise significant control over the company’s operations post-listing — limiting public shareholder influence.
- Single business vertical concentration — almost entirely dependent on distressed asset resolution, with limited diversification into other financial services.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
