The ₹733-crore initial public offering of Asset Reconstruction Company of India Ltd. , backed by Avenue Capital Group and State Bank of India, was subscribed 87% at the end of the second day of bidding on September 10. The issue closes for subscription today, September 11.
The issue received bids for 3.20 crore equity shares against 3.69 crore shares on offer. Retail investors emerged as the strongest participants, with their portion subscribed 1.24 times, while the non-institutional investor category was subscribed 1.03 times.
The qualified institutional buyer portion was subscribed 10%. ARCIL's IPO opened for subscription on September 9 and is the first Indian asset reconstruction company to opt for a public listing. Since the entire issue is an Offer For Sale , ARCIL will not receive any proceeds from the share sale.
In the grey market, ARCIL shares are currently commanding a premium of ₹14 per share, indicating a premium of close to 10% over the upper end of the issue price. However, grey market premiums are speculative in nature, and the actual listing price may differ from the levels indicated by the GMP.
Avenue India Resurgence Pte. Ltd. and State Bank of India, classified as promoters of the company, along with Lathe Investment Pte. Ltd. and Federal Bank, classified as investors, are the selling shareholders in the OFS. The IPO has a price band of ₹132-139 per share, with each share carrying a face value of ₹10.
For retail investors, the minimum lot size is 107 shares, requiring a minimum investment of ₹14,873 at the upper end of the price band. Investors can bid in multiples of 107 shares thereafter. For small high net-worth individuals , the minimum lot size is 1,498 shares, requiring an investment of ₹2,08,222.
For large HNIs, the minimum lot size is 7,276 shares, worth ₹10.11 lakh. The IPO has reserved 35% of the issue for retail investors, 50% for qualified institutional buyers and the remaining 15% for non-institutional investors . IIFL Capital, IDBI Capital and JM Financial are the book-running lead managers to the issue.
At the upper end of the price band, ARCIL will have a market capitalisation of ₹4,516 crore. What does Asset Reconstruction Company of India do? Asset Reconstruction Company of India Ltd. is an asset reconstruction company registered with the Reserve Bank of India under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.
The company acquires non-performing assets and stressed financial assets from commercial banks, financial institutions and non-bank lenders , and works towards their resolution through restructuring, legal enforcement, settlements and recovery mechanisms.
ARCIL operates across three verticals - corporate loans, SME and other loans, and retail loans. The company generates a majority of its revenue from trust management fees and returns on its investments in security receipts . Over the last three financial years, ARCIL's revenue grew from ₹574.1 crore in financial year 2024 to ₹785 crore in financial year 2026.
Its operating Earnings Before Interest, Tax, Depreciation and Amortisation increased to ₹589 crore in financial year 2026 from ₹416.4 crore in financial year 2024. EBITDA margins have been somewhat volatile, rising from 53.18% in financial year 2024 to 57% in financial year 2025, before narrowing to 51.95% in financial year 2026.
ARCIL does not have any direct listed peer for comparison.