ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED IPO
Offer terms, application timeline, financial context and company details in one place.
Issue at a glance
- Issue size
- ₹732.97 crore
- Face value
- ₹10
- Issue method
- Book Building
- Symbol
- ARCIL
- ISIN
- INE148G01016
Subscription
12.15×overall subscribed
| Investor category | Applications | Shares bid | Subscribed |
|---|---|---|---|
| Qualified Institutional Buyers(QIBs) | — | 29,39,48,367 | 27.87× |
| Foreign Institutional Investors(FIIs) | — | 19,58,19,416 | — |
| Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | — | 7,69,02,612 | — |
| Mutual funds | — | 0 | — |
| Others | — | 2,12,26,339 | — |
| Non Institutional Investors | — | 11,24,03,821 | 14.21× |
| Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | — | 8,24,68,217 | 15.64× |
| Corporates | — | 7,35,839 | — |
| Individuals(Other than RIIs) | — | 7,87,66,873 | — |
| Others | — | 29,65,505 | — |
| Non Institutional Investors(Bid amount of more than Two Lakh Rupees upto Ten Lakh Rupees) | — | 2,99,35,604 | 11.35× |
| Corporates | — | 1,72,912 | — |
| Individuals(Other than RIIs) | — | 2,88,42,171 | — |
| Others | — | 9,20,521 | — |
| Retail Individual Investors(RIIs) | — | 4,22,23,591 | 2.29× |
| Cut Off | — | 3,53,43,812 | — |
| Price bids | — | 68,79,779 | — |
| Total | — | 4.49 | 12.15× |
About the company
Incorporated in February 2002, Asset Reconstruction Company (India) Limited is an asset reconstruction company (ARC) engaged in acquiring stressed assets from banks and financial institutions and implementing resolution strategies to maximize recoveries and optimize the value of such assets. The Company received its certificate of registration from the Reserve Bank of India (RBI) to commence securitisation and asset reconstruction operations in August 2003 and is recognised as the first ARC incorporated in India. The Company operates across three key business verticals—Corporate Loans, SME and Other Loans, and Retail Loans. It acquires single-credit and portfolio-based stressed secured and unsecured assets and deploys various resolution, restructuring, enforcement, settlement and collection strategies based on the nature of the underlying assets. Its operations generate revenue through fee income and investment income.
Financial snapshot
Figures in ₹ crore unless otherwise specified.
| Period Ended | Mar-26 | Mar-25 | Mar-24 |
|---|---|---|---|
| Assets | 4,460.85 | 3,263.82 | 2,795.34 |
| Total Income | 785.08 | 623.40 | 574.11 |
| Profit After Tax | 407.84 | 355.32 | 305.34 |
| EBITDA | 588.93 | 491.88 | 416.36 |
| NET Worth | 3,079.39 | 2,767.80 | 2,462.51 |
| Reserves and Surplus | 2,751.18 | 2,439.19 | 2,135.20 |
| Total Borrowing | 1,205.50 | 305.93 | 149.95 |
What to consider
Use of proceeds
The Asset Reconstruction Co.(India) Ltd. IPO is a 100% Offer for Sale (OFS), so the company will not receive any funding and the entire IPO proceeds will go to the selling shareholders.
Business strengths
- Expertise in Acquiring Stressed AssetsThe Company has expertise in acquiring stressed assets through a disciplined acquisition process, supported by strong credit assessment, risk management, data analytics and technology-enabled tools to evaluate recovery potential and borrower risk.
- Strong Resolution & Collections FrameworkThe Company uses multiple strategies to maximise recoveries, including IBC, negotiated settlements, debt restructuring/rescheduling, SARFAESI and DRT, along with strategic investor induction where required.
- Consistent Financial & Operational PerformanceThe Company has demonstrated a consistent track record of financial and operational performance, supported by profitable growth, strategic bidding, effective resolution strategies and its ability to collect outstanding amounts.
Key risks
- RBI Compliance RiskNon-compliance with RBI observations, directions or action plans during inspections may result in penalties or restrictions, adversely affecting the Company’s reputation, business and financial performance.
- Difficulty in Acquiring Stressed AssetsThe Company acquires stressed assets through competitive bidding, including Swiss challenge and anchor processes. Inability to acquire sufficient assets at appropriate prices, or competition from bidders offering lower margins, could affect growth and financial performance.
- Recovery Risk in Stressed AssetsThe Company may be unable to recover outstanding amounts from acquired stressed assets in a timely manner or at all. Recovery depends on effective resolution through mechanisms such as IBC, settlements, restructuring/rescheduling, SARFAESI, DRT and liquidation of underlying assets.