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IPO Details

Asset Reconstruction Company (India) Limited IPO Analysis

This article is based entirely on publicly available information disclosed in the Red Herring Prospectus (RHP) of Asset Reconstruction Company (India) Limited, dated September 1, 2026, and is intended for general market and financial education purposes only.

Asset Reconstruction Company (India) Limited IPO Analysis

1. IPO Snapshot

ParticularDetails
Company NameAsset Reconstruction Company (India) Limited
IPO Type100% book built; Offer for Sale
Offer for SaleUp to 52,731,946 Equity Shares
Total Issue SizeUp to ₹6,960.62 million at ₹132; up to ₹7,329.74 million at ₹139
Face Value₹10 per Equity Share
Price Band₹132 to ₹139 per Equity Share
Lot Size107 Equity Shares
Opening DateSeptember 9, 2026
Closing DateSeptember 11, 2026
Basis of AllotmentTo be finalized after the Offer; process described in RHP
Listing DateNot Disclosed in the attached documents
Listing ExchangeBSE Limited and National Stock Exchange of India Limited; NSE is the Designated Stock Exchange
RegistrarMUFG Intime India Private Limited (formerly Link Intime India Private Limited)
Lead Manager(s)IIFL Capital Services Limited; IDBI Capital Markets & Securities Limited; JM Financial Limited

2. IPO Details

ComponentAt Floor Price ₹132 (₹ million)At Cap Price ₹139 (₹ million)
Offer for Sale Shares52,731,94652,731,946
Offer for Sale Amount₹6,960.62 million₹7,329.74 million
Total Offer Shares52,731,94652,731,946
Total Offer Size₹6,960.62 million₹7,329.74 million
Pre-Issue Shares324,897,140324,897,140
Market Capitalisation₹42,886.42 million₹45,160.70 million
Selling ShareholderTypeShares OfferedAt Floor Price ₹132 (₹ million)At Cap Price ₹139 (₹ million)WACA / Share (₹)
Avenue India Resurgence Pte. Ltd.Promoter Selling Shareholder24,823,910₹3,276.76 million₹3,450.52 million55.62
State Bank of IndiaPromoter Selling Shareholder10,963,062₹1,447.12 million₹1,523.87 million36.76
Lathe Investment Pte. Ltd.Investor Selling Shareholder16,244,858₹2,144.32 million₹2,258.04 million84.00
The Federal Bank LimitedOther Selling Shareholder700,116₹92.42 million₹97.32 million35.43
Total—52,731,946₹6,960.62 million₹7,329.74 million—

3. Issue Reservation

CategoryReservation
QIBNot more than 50% of the Offer
Anchor Investor PortionCompany may consider participation by Anchor Investors; up to 60% of the QIB Portion may be allocated to Anchor Investors under the RHP framework
Net QIB / Mutual Funds5% of the Net QIB Portion available to Mutual Funds; remaining Net QIB Portion to QIBs, subject to applicable rules
Non-InstitutionalNot less than 15% of the Offer
RetailNot less than 35% of the Offer

4. IPO Lot Size

ApplicationLotsSharesAt Floor Price ₹132At Cap Price ₹139
Retail (Min)1107₹14,124₹14,873
Retail (Max)131,391₹183,612₹193,349
S-HNI (Min)141,498₹197,736₹208,222
S-HNI (Max)677,169₹946,308₹996,491
B-HNI (Min)687,276₹960,432₹1,011,364

5. About the Company

Asset Reconstruction Company (India) Limited is an asset reconstruction company operating across India. It acquires stressed assets from banks and financial institutions and implements resolution strategies through restructuring, enforcement of rights on underlying securities and settlement, with the stated objective of maximizing recovery and optimizing the value of stressed assets.

The Company was incorporated as a public limited company on February 11, 2002, commenced business on May 7, 2003, and received its RBI certificate of registration to commence securitisation and asset reconstruction business on August 29, 2003. It completed its first acquisition of stressed assets in December 2003.

Key Business Highlights:

  • Business Verticals: Corporate Loans, SME and Other Loans, and Retail Loans.
  • Asset Acquisition: Acquires both single-credit and portfolio-based stressed secured and unsecured assets.
  • Resolution Methods: Includes IBC processes, settlements, restructuring/rescheduling, enforcement of security and Debt Recovery Tribunal processes, supported by collections and technology.
  • Revenue Sources: Management/trusteeship fees, portfolio recovery/collection fees, investment income and write-backs.
  • Operational Presence: As of March 31, 2026, the Company had 13 offices across 12 states, with 206 personnel, 218 registered valuers, 206 collection agents and 988 empanelled lawyers.
  • Assets Under Management: As of March 31, 2026, total AUM stood at ₹201,499.87 million, while the Company's investment in AUM was ₹44,085.89 million.
Business Vertical / MetricFY26%FY25%FY24%
Corporate Loans₹138,527.61 million68.75%₹127,200.05 million75.48%₹119,564.02 million78.51%
SME and Other Loans₹15,524.65 million7.70%₹13,846.85 million8.22%₹13,313.33 million8.74%
Retail Loans₹47,447.61 million23.55%₹27,478.80 million16.31%₹19,422.96 million12.75%
Total AUM₹201,499.87 million100.00%₹168,525.70 million100.00%₹152,300.31 million100.00%
Company’s Investment₹44,085.89 million21.88%₹32,983.01 million19.57%₹27,633.87 million18.14%

6. Restated Financial Information

ParticularFY26FY25FY24
Cash and cash equivalents1,581.601,832.533,592.64
Bank balances other than cash6,120.147,137.796,163.66
Trade receivables1,059.63538.80623.11
Loans31,088.2421,586.4714,483.88
Investments15,353.1611,215.959,137.55
Total financial assets55,522.2042,509.5034,192.53
Total non-financial assets1,741.761,450.352,374.38
Total assets57,263.9643,959.8536,566.91
Borrowings (other than debt securities)12,054.953,059.301,499.47
Security receipts7,109.066,254.513,316.41
Other financial liabilities6,978.526,287.056,729.49
Total financial liabilities26,142.7415,619.4011,559.60
Total non-financial liabilities1,569.081,709.05742.17
Equity share capital3,248.973,248.973,248.97
Other equity – Company34,563.1530,931.1227,512.42
Non-controlling interest(8,259.98)(7,548.69)(6,496.25)
Total equity29,552.1426,631.4024,265.14
Fees and other income2,355.491,275.961,466.75
Other operating income2,050.131,988.021,498.96
Recovery of SRs / unrealized fee & expenses written off earlier659.141,000.322,875.51
Interest income211.54206.58217.01
Net gain on fair value changes – unrealised1,940.621,346.69—
Total revenue from operations7,216.925,817.576,058.24
Other income282.24260.8236.65
Total income7,499.166,078.396,094.88
Finance costs361.84124.9273.67
Impairment of financial instruments/assets57.7628.4619.43
Employee benefits expenses635.89609.42556.60
Depreciation, amortization and impairment30.2421.5319.32
Write-off of SRs / unrealized fee & expenses868.08367.13492.64
Other expenses899.63615.35547.28
Total expenses2,853.441,766.811,947.49
Profit before tax4,645.724,311.584,147.39
Profit for the year3,226.913,092.393,108.85
Profit attributable to Company3,516.883,295.083,304.63
Basic and diluted EPS (₹)10.8210.1410.17
Net cash generated from operating activities1,938.272,834.745,507.24
Net cash used in investing activities(9,851.83)(5,536.56)(3,805.99)
Net cash generated from financing activities7,662.64941.71(551.33)
Net increase / (decrease) in cash and cash equivalents(250.93)(1,760.11)1,149.90
Cash and cash equivalents at year end1,581.601,832.533,592.64

7. Key Performance Indicators

KPIFY26FY25FY24
Total acquisition for year₹59,588.00 million₹39,758.71 million₹20,689.82 million
Company share in total acquisition₹20,230.46 million₹12,814.89 million₹9,449.68 million
Company share % of total acquisition33.95%32.23%45.67%
Total AUM₹201,499.87 million₹168,525.70 million₹152,300.31 million
Company share in total AUM₹44,085.89 million₹32,983.01 million₹27,633.87 million
Company share % of total AUM21.88%19.57%18.14%
Collection / recovery₹34,843.91 million₹38,826.55 million₹36,781.46 million
Cumulative SRs issued₹441,144.32 million₹381,556.32 million₹341,797.61 million
SR redemption for year₹26,381.17 million₹22,233.11 million₹29,534.71 million
Cumulative SR redemption₹224,000.27 million₹197,619.10 million₹175,385.99 million
Cumulative SR redemption ratio50.78%51.79%51.31%
Standalone revenue from operations₹7,530.42 million₹5,964.23 million₹5,701.41 million
Standalone PAT₹4,078.44 million₹3,553.19 million₹3,053.41 million
Standalone ROA10.56%11.73%11.48%
Standalone net worth₹30,793.93 million₹27,677.98 million₹24,625.11 million
Standalone debt/equity0.39x0.11x0.06x
Standalone ROE13.95%13.59%12.99%
Standalone Net Owned Funds₹25,768.72 million₹25,096.46 million₹23,698.54 million
Standalone CRAR65.31%88.41%98.14%
Consolidated revenue from operations₹7,216.92 million₹5,817.57 million₹6,058.24 million
Consolidated PAT attributable to Company₹3,516.88 million₹3,295.08 million₹3,304.63 million
Consolidated ROA6.95%8.18%10.25%
Consolidated net worth₹29,552.14 million₹26,631.40 million₹24,625.14 million
Consolidated debt/equity0.41x0.11x0.06x
Consolidated ROE12.52%12.95%14.15%

8. IPO Valuation

MetricDisclosure
Price Band₹132 to ₹139
Consolidated FY26 Basic EPS₹10.82
Standalone FY26 Basic EPS₹12.55
P/E – Consolidated12.20x at ₹132; 10.52x at ₹139
P/E – Standalone12.85x at ₹132; 11.08x at ₹139
Weighted Average EPS – Consolidated₹10.49
Weighted Average EPS – Standalone₹11.49
Weighted Average RoNW – Consolidated12.94%
Weighted Average RoNW – Standalone13.67%
NAV per Share – Consolidated, March 31, 2026₹90.96
NAV per Share – Standalone, March 31, 2026₹94.78
Market Capitalization₹42,886.42 million at ₹132; ₹45,160.70 million at ₹139

9. Peer Comparison

ARCFormationAUM FY25 (₹bn)AUM FY26 (₹bn)Market Share FY25Key Sponsors
ARCIL2002168.5201.512.6%Avenue India Resurgence Pte. Ltd. (~70%); SBI (~20%)
Edelweiss ARC2009147.290.511.0%Edelweiss Group (~56%); CDPQ (~20%)
Phoenix2007133.4NA9.9%Kotak Mahindra Bank Group (~50%)
JM Financial ARC2007128.8118.59.6%JM Financial Credit Solutions (~82%)
ACRE200292.7NA6.9%ARES ASIA Ltd (~49%); Axis Bank (~14%)
Omkara201482.7NA6.2%A Sakthivel (~11%); Sakthivel Kaleswara Vignesh (~11%)
NARCL2021241.7NA18.0%Canara Bank (12%)

11. Shareholding & Capital Structure

CategoryPre-Offer SharesPre-Offer %Post-Offer SharesPost-Offer %
Promoter & Promoter Group291,383,24589.68%255,596,27378.67%
Public33,513,89510.32%69,300,86721.33%
Total324,897,140100.00%324,897,140100.00%

Major Shareholders – Pre- and Post-Offer

ShareholderPre-Offer SharesPre-Offer %Post-Offer Shares at ₹132Post-Offer % at ₹132Post-Offer Shares at ₹139Post-Offer % at ₹139
Avenue India Resurgence Pte. Ltd.226,566,26569.73%201,742,35562.09%201,742,35562.09%
State Bank of India64,816,98019.95%53,853,91816.58%53,853,91816.58%
Lathe Investment Pte. Ltd.16,244,8585.00%————
Karnataka Bank Limited8,562,6002.64%8,562,6002.64%8,562,6002.64%
The South Indian Bank Limited4,139,3001.27%4,139,3001.27%4,139,3001.27%
The Federal Bank Limited4,139,3001.27%3,439,1841.06%3,439,1841.06%

Capital Structure & Offer Impact

ComponentAt Floor Price ₹132At Cap Price ₹139
Pre-Offer Equity Shares324,897,140324,897,140
Offer for Sale Shares52,731,94652,731,946
Fresh IssueNilNil
Total Post-Offer Equity Shares324,897,140324,897,140
Offer Size₹6,960.62 million₹7,329.74 million
Promoter & Promoter Group – Post-Offer78.67%78.67%
Public – Post-Offer21.33%21.33%
Market Capitalisation₹42,886.42 million₹45,160.70 million

12. Key Risks Highlighted in the RHP

CategoryRisk / RHP Disclosure in Simple Language
Business / AUMRevenue and investment income depend significantly on the value and composition of AUM. A decline in AUM, insufficient new acquisitions or high redemptions without replacement acquisitions may reduce revenue and profit.
RegulatoryThe RHP records RBI supervisory observations concerning regulatory compliance, policies, KYC, due diligence, business continuity, governance and related matters. Further observations or penalties cannot be assured against.
Acquisition / CompetitionThe Company acquires stressed assets through competitive bidding, including Swiss challenge and anchor processes. It may incur costs without winning assets or may face increased competition.
Recovery / CollateralRecovery depends on borrower repayment, legal enforcement, collateral values and resolution processes. Delays, weak recoveries or insufficient collateral may affect cash flows and results.
Portfolio ConcentrationCorporate loans represented 68.75% of AUM as of March 31, 2026. Adverse factors affecting corporate stressed assets may affect results.
Acquisition DecisionsStressed assets do not have readily ascertainable market prices. Valuation and acquisition decisions involve data, assumptions, collateral assessment and due diligence.
Technology / CybersecurityThe Company relies on IT systems for operations, risk management and retail collections. System failures, cyber threats, data breaches or technology transition issues may disrupt operations.
Legal / RegulatoryThe ARC business is subject to RBI, SARFAESI, IBC and other regulatory requirements. Changes or non-compliance may increase costs or result in restrictions or penalties.
Seasonality / IndustryThe business experiences seasonal changes in stressed-asset sales, and industry conditions can be affected by economic recovery, regulation and the supply of stressed assets.
Consolidation of TrustsRestated consolidated financials include trusts treated as subsidiaries or associates under Ind AS 110. Their assets and liabilities are legally distinct and the consolidation can affect financial metrics.
Risk Management / Third PartiesRisk-management systems and third-party service providers, including valuers, lawyers and collection agents, are material to operations. Failures or inadequate controls could affect results.
Capital / LiquidityThe business is capital intensive and depends on financing and qualified buyers' investment in security receipts. Funding constraints may affect acquisitions.
AML / KYC / ATFNon-compliance with AML, KYC or anti-terrorist financing requirements may lead to regulatory consequences and reputational effects.
Internal ControlsThe RHP discloses internal audit observations relating to Aadhaar masking, SARFAESI tracking, document tracking, KYC/AML categorisation, incident management, business continuity and centralized authentication.
LitigationThe Company, trusts, Promoters, Directors, KMP and Senior Management are involved in disclosed legal or regulatory proceedings. Adverse outcomes could affect business, financial condition and cash flows.
Debt / LiquidityConsolidated borrowings were ₹12,054.95 million as of March 31, 2026, with finance costs of ₹361.84 million and debt/equity of 0.41x.
Resolution ApplicantWhen acting as a resolution applicant under the IBC, the Company faces legal, financial and execution risks associated with approval and implementation of resolution plans.
Offer / ListingThe RHP states that there has been no formal market for the Equity Shares and no assurance is given regarding active or sustained trading or post-listing price.

13. Litigation & Contingent Liabilities

Party / ItemRHP Disclosure
Against Company Subsidiaries5 criminal; 1 tax; no statutory/regulatory; no material civil; aggregate amount ₹561.03 million
By Subsidiaries / Trusts5 criminal; 74 material civil; aggregate amount ₹180,106.60 million
Against Subsidiaries / Trusts14 tax; 1 material civil; aggregate amount ₹671.29 million
Against Directors1 criminal; 1 tax; no material civil; aggregate amount ₹Nil
By Promoters8,875 criminal; 2 material civil; aggregate amount ₹5,250.93 million
Against Promoters525 tax; 2 material civil; aggregate amount ₹993,774.92 million
Against KMP1 criminal; aggregate amount ₹Nil
Company Contingent LiabilityBank guarantee furnished by Company: ₹20.00 million

14. Registrar

ParticularDetails
NameMUFG Intime India Private Limited (Formerly Link Intime India Private Limited)
AddressC-101, 247 Park, LBS Marg, Vikhroli (West), Mumbai – 400083
Telephone+91 810 811 4949
Emailarcil@in.mpms.mufg.com
Websitewww.in.mpms.mufg.com
Investor Grievance Emailarcil@in.mpms.mufg.com
Contact PersonShanti Gopalkrishnan
SEBI Registration No.INR000004058
CINU67190MH1999PTC118368

15. Lead Manager(s)

BRLMAddressPhoneEmailSEBI Regn.
IIFL Capital Services Limited (formerly IIFL Securities Limited)24th Floor, One Lodha Place, Senapati Bapat Marg, Lower Parel (West), Mumbai 400013+91 22 4646 4728arcil.ipo@iiflcap.comINM000010940
IDBI Capital Markets & Securities Limited6th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005+91 22 4069 1953arcil.ipo@idbicapital.comINM000010866
JM Financial Limited7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025+91 22 6630 3030arcil.ipo@jmfl.comINM000010361

16. Company Contact Details

ParticularDetails
Registered and Corporate OfficeThe Ruby, 10th Floor, 29 Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India
Telephone+91 22-66581300
Emailcs@arcil.co.in
Websitewww.arcil.co.in
Company Secretary / Compliance OfficerAmeet Ashok Kela, Company Secretary and Compliance Officer, Head CSR
Investor Grievance ContactCompany Secretary and Compliance Officer

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