MUMBAI: The Asset Reconstruction Company of India (Arcil), a pioneer in the asset reconstruction industry in the country, has said it has received the approval from the regulator Sebi for a Rs 1,000-1,500 crore IPO, which will be a mix of fresh issue and secondary sale of equities by promoters. It will be the first asset reconstruction company (ARC) to go public.
According to the issue papers, the IPO comprises an offer for sale of up to 10,54,63,892 shares of face value of Rs 10 each by promoters. The OFS comprises selling up to 6,87,39,034 shares each by Avenue India Resurgence, up to 19,445,000 by State Bank of India, up to 1,62,44,858 by Lathe Investment and up to 10,35,000 by Federal Bank.
Arcil was the first ARC to get RBI approval way back in 2003 under the Sarfaesi Act. With over two decades of experience in acquiring stressed assets and executing resolution strategies through restructuring, enforcement and settlements, it has established a strong national presence across 13 offices.
According to a recent Crisil Ratings report, Arcil was the second most profitable ARC in fiscal 2024 with a standalone profit of Rs 305 crore, the second largest by AUM at Rs 15,230 crore and had the second highest net worth among private ARCs at Rs 2,462 crore. It was also the second largest in revenue from operations (excluding unrealized fair value changes) at Rs 570 crore.