ARCIL Files IPO Papers with SEBI; Offer Includes Over 10.5 Crore Shares

Asset Reconstruction Company (India) Ltd (ARCIL), one of India’s oldest and leading private asset reconstruction companies, has taken a significant step towards going public. The company has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), paving the way for its initial public offering (IPO).

The IPO will be a pure offer for sale (OFS), involving the sale of up to 10.5 crore equity shares, each with a face value of ₹10.

Key Selling Shareholders

• Avenue India Resurgence Pte Ltd will sell up to 6.87 crore shares.

• State Bank of India (SBI) plans to offload up to 1.94 crore shares.

• Lathe Investment Pte Ltd will offer up to 1.62 crore shares.

• Federal Bank will sell up to 10.35 lakh shares.

This move allows these existing investors to unlock value, while also giving public investors a chance to participate in the ARC business.

Also Read: Tariffs and Tensions: Has the India-US Bond Fractured?

About ARCIL

Established in 2002, ARCIL was India’s first asset reconstruction company and has grown to become one of the largest private players in the ARC space.

As per its latest available figures:

• Assets Under Management (AUM): ₹15,230 crore

• Net Worth: ₹2,462 crore
  This positions ARCIL as the second-largest private ARC in India by both metrics.

ARCIL operates across a broad loan spectrum, including:

• Corporate loans

• SME and other loans

• Retail loans

The company generates income from management fees, recovery fees, investments, and write-backs—all key indicators of performance and efficiency in the ARC sector.

Promoters and Leadership

ARCIL’s main promoters are:

• Avenue India Resurgence (an affiliate of Avenue Capital Group)

• State Bank of India (SBI)

The company is led by CEO Pallav Mohapatra, who heads a senior management team with deep experience in banking and asset recovery.

What This Means

This IPO marks a new chapter for ARCIL as it seeks to diversify its shareholder base and possibly raise its visibility in the public market. While the offer does not include a fresh issue of shares (hence, no new capital for the company), it sets the stage for greater public participation in the ARC industry, which plays a vital role in cleaning up stressed assets in India’s banking sector.