Offer for sale to comprise of up to 105,463,892 equity shares of face value of ₹10 each.
Asset Reconstruction Company (India) Ltd is planning an initial public offering (IPO) comprising an offer for sale (OFS) of up to 105,463,892 equity shares of face value of ₹10 each. This will be the first IPO by an asset reconstruction company (ARC).
The OFS comprises of up to 68,739,034 equity shares of face value of ₹10 each by Avenue India Resurgence Pte Ltd, up to 19,445,000 shares by State Bank of India, up to 16,244,858 shares by Lathe Investment Pte Limited and up to 1,035,000 shares by Federal Bank, according to the Draft Red Herring Prospectus (DRHP) filed by India’s first asset reconstruction company (ARC) with market regulator Securities and Exchange Board of India (SEBI).
Established in 2002, Asset Reconstruction Company (India) Limited (ARCIL) was the second largest in terms of assets under management (AUM) at ₹15,230 crore and had the second highest net worth among private ARCs in India at ₹2462.511 crores.
ARCIL is promoted by Avenue India Resurgence Pte Ltd (an affiliate of Avenue Capital Group) and the State Bank of India, which are also identified as sponsors of the Company under the SARFAESI Act.
The ARC operates across three business verticals including corporate loans, SME and other loans, and retail loans classifying acquired stressed assets based on internally assessed resolution mechanism. It primarily derives its revenue from management fees/ trusteeship fees, portfolio recovery fees, income from investments and write backs.
During fiscals 2025, 2024 and 2023, the company acquired ₹3,976 crore, ₹2,069 crore and ₹4,289 crore of stressed assets, respectively, and the AUM was ₹16,853 crore as of March 31, 2025, ₹15,230 crore as of March 31, 2024, and ₹16,223.50 crore as of March 31, 2023.
For the year ended 31 March 2025, ARCIL’s revenue from operations stood at ₹596 crore, total income stood at ₹623 crore, PAT stood at ₹355 crore and PAT margin stood at 57 per cent.
More Like This
Published on August 2, 2025
