ARCIL files IPO papers with SEBI; offer includes over 10.5 crore shares

Founded in 2002, ARCIL was India’s first asset reconstruction company and is currently among the largest private ARCs.

Asset Reconstruction Company (India) Ltd (ARCIL) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a step towards its initial public offering (IPO).

The IPO will be a pure offer for sale (OFS) of up to 10.5 crore equity shares with a face value of Rs 10 each. The selling shareholders include: Avenue India Resurgence Pte Ltd offering up to 6.87 crore shares. State Bank of India (SBI) offering up to 1.94 crore shares. Lathe Investment Pte Ltd offering up to 1.62 crore shares and Federal Bank offering up to 10.35 lakh shares

Founded in 2002, ARCIL was India’s first asset reconstruction company and is currently among the largest private ARCs. As of recent data, it had assets under management (AUM) of Rs 15,230 crore and a net worth of Rs 2,462 crore, making it the second-largest by both metrics in the private ARC space.

ARCIL operates across corporate loans, SME and other loans, and retail loans, and earns revenue from management fees, recovery fees, investments, and write-backs.

The company’s main sponsors are Avenue India Resurgence (an affiliate of Avenue Capital Group) and SBI. It is headed by CEO Pallav Mohapatra and a senior leadership team with experience in banking and asset recovery.