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ARCIL Files DRHP for 10.5 Crore-Share Offer-for-Sale IPO

The move signals the first asset reconstruction company’s transition to public markets through an offer-for-sale by existing shareholders

Overview

  • Asset Reconstruction Company (India) Limited was incorporated in 2002 as the country’s first ARC and had grown to manage ₹16,852.57 crore of stressed assets by March 31, 2025 across corporate, SME and retail loans.
  • The IPO is a fully promoter-led offer-for-sale of 10.5 crore equity shares, with Avenue India Resurgence selling 6.87 crore, SBI offloading 1.94 crore, Lathe Investment 1.62 crore and Federal Bank 10.35 lakh shares.
  • According to the DRHP, ARCIL achieved recoveries of ₹28,459.7 crore from acquired principal debt of ₹72,657.31 crore at a cost of ₹38,155.63 crore, reflecting a recovery-to-investment efficiency above 74%.
  • In FY25, the company reported a profit after tax of ₹355.31 crore with a 57% margin and maintains robust capital metrics including a 99.03% capital adequacy ratio, a 0.06 debt-to-equity ratio and a standalone net worth of ₹2,767.8 crore.
  • IIFL Capital, IDBI Capital Markets & Securities and JM Financial have been appointed book-running lead managers, with listings planned on both the BSE and NSE pending SEBI’s pricing and scheduling approval.