Upcoming IPO, Arcil IPO: Avenue Capital Broup-backed Asset Reconstruction Company (India) Limited (ARCIL) has submitted a draft to the Securities and Exchange Commission of India (SEBI) for an initial public offering (IPO) aimed at mobilizing funds through a full offer (OFS).
Arcil, India’s first asset reconstruction company, is committed to obtaining and addressing stressful assets from banks and financial institutions.
The proposed IPO includes stocks with up to 105.4 million shares of existing promoters and shareholders, according to the draft Red Herring Prospectus (DRHP) filed on Friday (August 1).
Here is a summary of OFS details:
- Avenue Capital can sell up to 687 million shares through its Alliance Avenue India Revival PTE
- SBI to unload 19,400 shares
- Federal Bank plans to sell 1.035 million shares
- Singapore’s sovereign wealth fund GIC has provided up to 162 million shares through Lathe Investment Pte Ltd, which is about to withdraw from its shares, equivalent to 5% of the company’s shares.
Arcil Financial Performance
According to the Crisil report, Arcil is the second most profitable asset reconstruction company in India in fiscal 24 with reported net profit of Rs 3,053.4 crore.
It is also the second largest asset in management (AUM), with assets of Rs 152.3 crore and the second largest net worth in the private arc as of March 31, 2024 was Rs 246.25 crore.
By 31 March 2025, Arcil acquired principal debt worth Rs 72,657 crore for Rs 38,156 crore, accounting for 52.51% of the total debt, bringing the recovery rate to Rs 28,460 crore and the total borrowing was Rs 305.99 crore.
BRLMS, registered service provider
IIFL Capital Services, IDBI Capital Markets & Securities and JM Financial served as chief billing managers for the IPO, while MUFG Intime India served as registrar. It is recommended that the company’s shares be listed on BSE and NSE.
About Arcil
Arcil was established in 2003 after registering with the Reserve Bank of India under the Sarfaesi Act and first acquired stressed assets in December 2003. Over the years, it has played a key role in debt recovery and solutions through asset restructuring, enforcement of security rights and settlements.
Arcil competes with leading players like Edelweiss Arc, JM Financial Arc, Acre, Phoenix and Omkara.
