India's first asset reconstruction company files IPO after 20 years
What's the story
Asset Reconstruction Company India Limited (ARCIL), India's first-ever Asset Reconstruction Company (ARC), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The move comes as part of a plan to raise funds through an Initial Public Offering (IPO). The proposed IPO consists of an offer for sale of up to 10.5 crore equity shares with a face value of ₹10 each.
Share details
Major shareholders participating in the offer for sale
ARCIL was founded in 2002. The offer for sale in the IPO includes major shareholders such as Avenue India Resurgence, which plans to offload up to 6.8 crore shares. India's biggest lender, the State Bank of India (SBI), will sell 1.9 crore shares. Lathe Investment Pte. is selling 1.6 crore shares and The Federal Bank is offering 10.3 lakh shares for sale.
Company profile
ARCIL's business model and financial performance
ARCIL specializes in acquiring stressed assets from banks and financial institutions. It implements resolution strategies to maximize recovery and optimize the value of these stressed assets. The company was India's second-most profitable ARC in FY2024 with a standalone profit of ₹305.3 crore. It also ranked second among Indian ARCs by assets under management (AUM) with ₹15,230 crore as of March 31, 2024.
Business model
Breakdown of acquired stressed assets
ARC operates across three business verticals: corporate loans, SME and other loans, and retail loans. The company classifies acquired stressed assets based on the resolution mechanism employed. As of March 31, 2025, ARC had acquired ₹72,657.3 crore in total principal debt at a cost of ₹38,155.6 crore or 52.51% of the total principal debt with recoveries amounting to ₹28,459.7 crore.