Avenue Capital Group-backed Arcil files IPO papers with 100% offer for sale component

Arcil files IPO papers

US-based Avenue Capital Group-backed Arcil, the India's first asset reconstruction company (ARC) with second largest AUM, has filed preliminary papers with the SEBI to raise funds via initial share sale. Also, it is the first to approach capital markets for fund raising via IPO.

The IPO comprises of entirely an offer-for-sale of 10.54 crore shares by existing shareholders - Avenue India Resurgence Pte, State Bank of India, Lathe Investment Pte, and Federal Bank.

Hence, the company, which acquires bad debts or non-performing assets from banks and financial institutions, will not receive any money. All the IPO proceeds will go to the selling shareholders.

Moneycontrol was the first to report in May this year that Arcil is gearing up to go public and has initiated work on preparing the draft red herring prospectus for its proposed initial public offering which could be of Rs 1,000-1,500 crore size.

Incorporated in 2002, Asset Reconstruction Company India Limited (Arcil) with AUM of Rs 16,852.6 crore operates across India through a network of 13 offices across 12 states (including Delhi), and acquires stressed assets (non-performing assets) from banks and financial institutions. Further, it implements resolution strategies through restructuring, enforcement of rights over underlying securities, and settlements aimed at maximizing recovery and optimizing the value of stressed assets to generate revenue streams.

So far till March 2025, it had acquired Rs 72,657.3 crore in total principal debt at a cost of Rs 38,155.6 crore or 52.51 percent of the total principal debt and had made recoveries of Rs 28,459.8 crore.

Avenue India Resurgence Pte, owned by New York-headquartered global investment firm Avenue Capital Group, holds 69.73 percent shareholding in Arcil. Further, 19.95 percent stake is owned by State Bank of India. Both are promoters of the company.

Public shareholders include Lathe Investment (owned by Singapore-based GIC Ventures), Federal Bank, South Indian Bank, and Karnataka Bank have 10.18 percent shareholding.

Lathe Investment acquired 9.9 percent stake in Arcil through preferential allotment in 2008. Of which, 4.9 percent shares were sold to Avenue India Resurgence in April 2019.

Avenue Capital (through Avenue India Resurgence), founded in 1995 by Marc Lasry and Sonia Garnder, first picked up stake in Arcil in March 2019 from shareholders like Karur Vysya Bank, Barclays Bank, Quiveo Enterprises, Cyprus, HDFC Bank, and IDFC Bank. And over the years, it gradually increased stake up to 69.73 percent through major stakes acquisition like 19.18 percent from IDBI Bank, 13.26 percent from ICICI Bank, and 10 percent from Punjab National Bank (which was the last happened in March 2023).

In the last fiscal year 2025, Arcil recorded profit at Rs 355.3 crore, growing 16.4 percent from Rs 305.3 crore in the previous year. Revenue in FY25 increased by 4.6 percent to Rs 596.4 crore, up from Rs 570.1 crore in the fiscal 2024.

IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial are appointed as the merchant banker for managing the Arcil IPO.