Asset Reconstruction Company sets price band for ₹733 crore IPO; Check lot size, dates and other details

Asset Reconstruction Company (India), or Arcil, has fixed the price band for its initial public offering (IPO) at ₹132-139 per share. The public issue will open for subscription on September 9 and close on September 11, while the anchor investor portion will open on September 8.

Retail investors can bid for a minimum of one lot comprising 107 equity shares and in multiples thereafter. At the upper end of the price band, the minimum investment works out to ₹14,873.

At the upper end of the price band, the IPO values Arcil at around ₹733 crore.

The IPO comprises an offer-for-sale (OFS) of 5.27 crore equity shares, with no fresh issue component.

Promoters Avenue India Resurgence, owned by New York-headquartered global investment firm Avenue Capital Group, and State Bank of India, along with investors Lathe Investment and Federal Bank, will be the selling shareholders in the OFS.

As the issue is entirely an OFS, the IPO proceeds will go to the selling shareholders, and Arcil will not receive any proceeds from the offer.

Avenue India Resurgence and State Bank of India hold 69.73% and 19.95%, respectively, in Arcil. Among public shareholders, Singapore's sovereign wealth fund GIC-backed Lathe Investment owns a 5% stake, while Karnataka Bank holds 2.64%. South Indian Bank and Federal Bank each hold a 1.27% stake in the company.

The IPO size has been halved from the 10.54 crore shares planned in the OFS at the time of filing of the DRHP in August 2025. The issue subsequently received SEBI approval in October 2025.

Arcil has reserved 50% of the offer size for qualified institutional buyers, while 35% of the issue has been allocated to retail investors and the remaining 15% to non-institutional investors.

With operations across the country through a network of 13 offices in 12 states, including Delhi, Arcil acquires stressed assets from banks and financial institutions and implements resolution strategies through restructuring. The company aims to maximise recoveries and optimise the value of such assets to generate revenue streams.

Arcil was the first asset reconstruction company to be incorporated in India and received a certificate of registration from the Reserve Bank of India to commence operations in August 2003. As of FY25, it claimed to be the second-largest ARC in India in terms of assets under management (AUM), with an AUM of ₹16,852.6 crore.

On the financial front, Arcil reported a profit of ₹351.7 crore for the year ended March 2026, up 6.7% from ₹329.5 crore in the previous year. Revenue during the same period rose 24% to ₹721.7 crore from ₹581.8 crore.

IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial have been appointed as the merchant bankers for the public issue.

The IPO share allotment is expected to be finalised by September 15, while Arcil shares are likely to begin trading on the bourses on September 17.