Arcil IPO opens today: Check price band, GMP, key dates, and other details

Asset Reconstruction Company (Arcil) is set to open its Rs 733 crore issue today, September 9. Its IPO is entirely an offer-for-sale as the investor groups will offload 5.27 crore shares of Rs 10 each.

Ahead of its opening, Arcil had raised Rs 219.89 crore through its anchor book, which included marquee names such as Goldman Sachs, Ashoka Whiteoak, Tata Mutual Fund, and BofA Securities.

Arcil IPO’s share price band is fixed at Rs 132 to Rs 139 per share, and the issue will close its bidding window on September 11. Here are all the details you should know in case you wish to subscribe.

The Mumbai-based firm aims to raise Rs 732.97 crore from the Indian primary markets, and its issue is entirely an OFS. Avenue India Resurgence, State Bank of India, Lathe Investment, and The Federal Bank will offload 5.27 crore shares of Rs 10 each, and the company will receive no proceeds from the share sale.

IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial are the investment bankers to the issue, while MUFG Intime India is the registrar to the offer.

In order to participate, retail investors need to bid for a minimum of one lot comprising 107 shares, entailing an investment of Rs 14,873, while the maximum number of lots retail applicants can bid for is 13.

For small high-net-worth individuals, the lower cap is set at 14 lots, and the upper limit is 67 lots, equating to an investment of Rs 9,96,491. As for big HNI, the minimum limit is 68 lots.

In the unlisted markets, Arcil’s stock is trading at a premium of Rs 30 or 21.58%, suggesting a listing price of Rs 169, based on the upper end of the price band. This reflects gains of Rs 3,210 per lot.

However, investors must know that GMP is an unofficial metric to guess the listing price and is highly vulnerable to market volatility.

The ARC will wrap up its bidding process by September 11, and the company’s share allotment process is expected to be completed by September 15. Investors shall receive their allotted shares and refunds by September 16, and Arcil is expected to list on the stock exchanges on September 17.