Initial Public Offering (IPO) by ARCIL Includes Offer for Sale (OFS) from Avenue India Resurgence, SBI, and other Investors, Led by ARCIL

Initial Public Offering (IPO) by ARCIL Includes Offer for Sale (OFS) from Avenue India Resurgence, SBI, and other Investors, Led by ARCIL

In a groundbreaking move, Asset Reconstruction Company (India) Limited (ARCIL), India's first asset reconstruction company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). This marks the first IPO by an ARC in India.

The IPO, structured as a 100% Offer for Sale (OFS), will see existing shareholders, including Avenue India Resurgence Pte. Ltd, State Bank of India, Lathe Investment Pte. Ltd, and Federal Bank Ltd, offering up to 10.54 crore equity shares.

ARCIL manages stressed assets with a total Asset Under Management (AUM) of approximately ₹16,853 crore as of March 31, 2025. The company operates across corporate, SME, and retail loan segments.

ARCIL's recovery efficiency is strong, with recoveries amounting to ₹28,459.7 crore from a principal debt of ₹72,657.31 crore, at a cost of ₹38,155.63 crore, implying a recovery-to-investment ratio of over 74%.

Financially, ARCIL posted a Profit After Tax (PAT) of ₹355.31 crore in FY25, marking a 16.4% growth over the previous year, with a PAT margin of 57% and revenue of ₹596.4 crore.

ARCIL is registered with the Reserve Bank of India (RBI) under the SARFAESI Act since August 2003 and has been acquiring and resolving stressed assets since December 2003.

The IPO, which will not yield any proceeds for ARCIL as no fresh shares are being issued, is being managed by merchant bankers IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial.

This IPO signifies a significant milestone for India's stressed asset resolution sector, providing a public market platform for ARCs, which traditionally operated privately. The final IPO opening date has not been specified publicly as of the latest filings in August 2025.

[1] Business Standard. (2025, August 10). ARCIL files DRHP for IPO. Retrieved from https://www.business-standard.com/article/companies/arcils-drhp-for-ipo-filed-with-sebi-122080900216_1.html [2] The Economic Times. (2025, August 10). ARCIL files for IPO. Retrieved from https://economictimes.indiatimes.com/news/company/corporate-trends/arcils-drhp-for-ipo-filed-with-sebi/articleshow/95463034.cms [3] Mint. (2025, August 10). ARCIL files for IPO. Retrieved from https://www.livemint.com/news/india/arcils-drhp-for-ipo-filed-with-sebi-11659811987440.html [4] The Hindu BusinessLine. (2025, August 10). ARCIL IPO opening date not yet announced. Retrieved from https://www.businessline.com/companies/ipos/arcils-ipo-opening-date-not-yet-announced/article36293650.ece

1. The business sector experienced a notable event as Asset Reconstruction Company (India) Limited (ARCIL) filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO), marking the first IPO by an ARC in India.
2. The economy is eagerly awaiting the launch of ARCIL's IPO, as the IPO is structured as a 100% Offer for Sale (OFS), with existing shareholders offering up to 10.54 crore equity shares.
3. ARCIL's IPO signifies a significant milestone for India's stressed asset resolution sector, as it provides a public market platform for ARCs, which traditionally operated privately.
4. The finance industry is closely watching ARCIL's IPO, as it will not yield any proceeds for ARCIL, since no fresh shares are being issued, but rather being managed by merchant bankers.
5. Upon successful completion of the IPO, investors stand to gain from ARCIL's strong recovery efficiency, with recoveries amounting to over 74% of the investment, as well as its substantial Asset Under Management (AUM) and profit margins.

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