💡 Overview & Qucik Summary
ARCIL IPO Summary: Asset Reconstruction Company (India) Limited (ARCIL) is launching an Initial Public Offering (IPO) of ₹732.97 Crore entirely as an Offer for Sale (OFS) of 5,27,31,946 equity shares of face value ₹10 each, priced in the band of ₹132 to ₹139 per share, open from September 9 to September 11, 2026. ARCIL is India's genuine industry pioneer—the first asset reconstruction company incorporated in India (RBI registration August 29, 2003) and the second largest ARC by AUM with over two decades of operating history (Source: CRISIL Report). Backed by marquee promoters Avenue India Resurgence Pte. Ltd. (Avenue Capital Group, 69.73%) and State Bank of India (19.95%), the company operates across 13 offices in 12 states (including Delhi) supported by 218 registered valuers, 206 collection agents, and 988 empanelled lawyers. Financially, Total Income rose 23.4% YoY in FY26 to ₹749.92 crore, PAT grew to ₹322.69 crore (with reported PAT growth to ₹351.69 Cr, 6.7% YoY), sustaining high EBITDA margins in the 71-77% band and RoNW of 12.52%-14.15%. At ₹132-139, FY26 diluted EPS of ₹10.82 implies an undemanding P/E multiple of 12.2x-12.8x (12.85x at ₹139). Sushil Finance recommends Subscribe.
1. IPO Overview
Asset Reconstruction Company (India) Limited (ARCIL) has opened its Initial Public Offering for subscription from September 9, 2026 to September 11, 2026. The price band has been fixed at ₹132 to ₹139 Per Equity Share with a face value of ₹10/- each. The minimum bid lot is 107 Shares and in multiples thereafter. The aggregate issue size stands at ₹732.97 crore across 5,27,31,946 shares.
| Issue Parameter |
Details |
| Price Band |
₹132 to 139 Per Equity |
| Issue Opens on |
Sep 9, 2026 |
| Issue Closes on |
Sep 11, 2026 |
| Lot Size |
107 Shares & in Multiples thereafter |
| Issue Size |
₹732.97 Cr. |
| No of Shares |
5,27,31,946 |
| Face Value |
₹10/- |
| Listing |
BSE & NSE |
| Lead Managers |
IIFL Capital Services Ltd., IDBI Capital Markets & Securities Ltd., JM Financial Ltd. |
| Registrar |
MUFG Intime India Pvt. Ltd. |
2. Key IPO Details
The public offer is structured entirely as an Offer for Sale (OFS), with zero fresh issue dilution. Investor category quotas and capital allocations at the upper price band are detailed below:
Offer Structure
| Issuance |
in Cr. |
| Fresh Issue |
Nil |
| Offer for Sale |
732.97 |
| Total |
732.97 |
Issue Breakup
| Reservation for |
% of Issue |
in Cr. (at upper band) |
| QIB |
50% |
366.49 |
| HNI |
15% |
109.95 |
| RETAIL |
35% |
256.54 |
| TOTAL |
100% |
732.97 |
3. Company Overview
Asset Reconstruction Company (India) Limited (ARCIL) is an asset reconstruction company (ARC) operating across India, engaged in acquiring stressed assets from banks and financial institutions and implementing resolution strategies through restructuring, enforcement of rights on underlying securities and settlement, aimed at maximising recovery and optimising the value of such stressed assets.
ARCIL is a genuine industry pioneer — it was the first ARC to be incorporated in India, having obtained its certificate of registration from the RBI on August 29, 2003, and completed its first acquisition of stressed assets in December 2003, giving it over two decades of operating history (Source: CRISIL Report).
Key institutional and operational infrastructure highlights include:
- Pan-India Footprint: The Company operates through a network of 13 offices across 12 states (including Delhi).
- Talent & Professional Network: ARCIL employs 206 personnel, supported by 218 registered valuers, 206 collection agents, and 988 empanelled lawyers, as of March 31, 2026.
- Marquee Promoters: ARCIL is backed by marquee promoters — Avenue India Resurgence Pte. Ltd. (an affiliate of Avenue Capital Group, holding 69.73%) and State Bank of India (holding 19.95%) — lending it institutional credibility and a strong capital base.
4. Objects of the Issue
The Offer is entirely an Offer for Sale of up to 5,27,31,946 equity shares by the Promoter and other Selling Shareholders (Avenue India Resurgence Pte. Ltd., State Bank of India, Lathe Investment Pte. Ltd. and Federal Bank, among others), with no fresh issue component.
The Company will not receive any proceeds from the Offer; all proceeds go to the Selling Shareholders in proportion to the shares offered by them, net of applicable expenses and taxes.
The stated objective is solely to achieve the benefits of listing (enhanced visibility, brand value and liquidity for existing shareholders), with the Promoter Selling Shareholders undertaking a partial divestment to realise a portion of their investment.
5. Highlights
- India's First ARC with the Second Largest AUM: ARCIL was the first ARC incorporated in India and was the second largest ARC by AUM.
- Expertise in Acquiring Stressed Assets with increasing investment in SRs: A disciplined, comprehensive credit assessment and risk management framework, backed by strong relationships with banks and financial institutions.
- Ability to Implement Resolution Strategies and a Robust Collections Framework: Multiple resolution mechanisms (IBC, settlements, restructuring, SARFAESI) supported by specialised collection teams across three business verticals.
- Track Record of Consistent Financial and Operational Performance: A consistent history of profitable growth, strategic bidding and disciplined resolution execution, sustained across multiple credit cycles.
- Experienced Board, Management Team and Marquee Investors: Backed by Avenue Capital Group and State Bank of India.
6. Brief Financials & Performance Metrics
*Not Annualized
| Particulars |
FY2024 |
FY2025 |
FY2026 |
| Total Income |
609.49 |
607.84 |
749.92 |
| Total Expenditure |
194.75 |
176.68 |
285.34 |
| EBITDA |
443.62 |
445.80 |
532.78 |
| Profit Before Tax (PBT) |
414.74 |
431.16 |
464.57 |
| Profit After Tax (PAT) |
310.88 |
309.23 |
322.69 |
| E.P.S. (Diluted) (Rs.) |
10.17 |
10.14 |
10.82 |
| P/E (Diluted)* |
13.67x |
13.71x |
12.85x |
| RONW / ROE (%) |
14.15% |
12.95% |
12.52% |
7. IPO Timeline
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
15/9/2026 |
| Initiation of refunds/unblocking ASBA Fund |
16/9/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
16/9/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
17/9/2026 |
8. Retail & HNI Payment Charts
PRICE CHART (@139) (Retail Category)
| LOT SIZE |
Amount (Rs.) |
| 107 | 14,873 |
| 214 | 29,746 |
| 321 | 44,619 |
| 428 | 59,492 |
| 535 | 74,365 |
| 642 | 89,238 |
| 749 | 104,111 |
| 856 | 118,984 |
| 963 | 133,857 |
| 1070 | 148,730 |
| 1177 | 163,603 |
| 1284 | 178,476 |
| 1391 | 193,349 |
HNI Payment Chart
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,498 |
2,08,222 |
| Big HNI |
7,276 |
10,11,364 |
9. Our View / Recommendation
Official Analyst Recommendation: SUBSCRIBE
Sushil Finance Research Stance
ARCIL merits a Subscribe, anchored by category pioneer status and an attractive valuation.
Total Income grew from Rs.607.84 crore to Rs.749.92 crore in FY26 (23.4% YoY), while PAT grew from Rs.329.51 crore to Rs.351.69 crore (6.7% YoY), with EBITDA margin holding a strong 71-77% band typical of an asset-light financial services platform.
RoNW has stayed consistently healthy across all three years (12.52%-14.15%), evidencing durable, if moderating, capital efficiency.
At the Rs.132-139 price band, FY26 diluted EPS of Rs.10.82 implies a P/E of just 12.2x-12.8x — a notably undemanding multiple for a profitable, first-mover financial services business with a two-decade operating history and marquee institutional backing (Avenue Capital, SBI).
10. Frequently Asked Questions (FAQs)
Q1. What is the business model and history of ARCIL?
Asset Reconstruction Company (India) Limited (ARCIL) is India's first ARC incorporated in India, obtaining its RBI registration certificate on August 29, 2003, with over two decades of operating history. It acquires stressed assets from banks and financial institutions and implements resolution strategies through restructuring, enforcement of rights under SARFAESI/IBC, and settlements to maximize recoveries.
Q2. What is the issue size and structure of ARCIL IPO?
The issue aggregates up to ₹732.97 crore for 5,27,31,946 equity shares of face value ₹10 each. It is entirely an Offer for Sale (OFS) with no Fresh Issue component, meaning no proceeds will be received by the company.
Q3. Who are the promoters and selling shareholders?
ARCIL is backed by marquee promoters Avenue India Resurgence Pte. Ltd. (an affiliate of Avenue Capital Group, holding 69.73%) and State Bank of India (holding 19.95%). The Selling Shareholders include Avenue India Resurgence Pte. Ltd., State Bank of India, Lathe Investment Pte. Ltd., and Federal Bank, among others.
Q4. What is the minimum investment required for Retail and HNI investors?
For Retail investors, 1 lot (107 shares) costs ₹14,873 at the upper price band of ₹139. For Small HNI (sHNI), the minimum bid is 1,498 shares (₹2,08,222), and for Big HNI (bHNI), the minimum bid is 7,276 shares (₹10,11,364).
Q5. Why does Sushil Finance recommend a 'Subscribe' on the ARCIL IPO?
Sushil Finance recommends Subscribe based on ARCIL's pioneer status as India's first ARC (and second largest by AUM), durable capital efficiency (RoNW of 12.52%-14.15%), high EBITDA margins in the 71-77% band, marquee institutional backing (Avenue Capital, SBI), and an attractive valuation of just 12.2x-12.8x FY26 diluted P/E.
11. Red Herring Prospectus (RHP) Reference
12. Disclaimer
Official Disclaimer
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
