Asset Reconstruction Company

Asset Reconstruction Company (India)-NEW IPO: GMP, Profit, Price & expert review

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Asset Reconstruction Company (India) Limited is engaged in the business of acquiring and resolving stressed assets and non-performing loans (NPAs) from banks and financial institutions. The company facilitates debt resolution by purchasing distressed loans and implementing recovery strategies such as restructuring, settlements, and enforcement of security interests to maximize recovery value.

Asset Reconstruction Company (India) Limited was incorporated in 2002 & currently Mr. Pallav Mohapatra serves as the Managing Director & Chief Executive Officer (CEO) of the company.

Asset Reconstruction Company (India) Limited has filed its DRHP prospectus with the Securities and Exchange Board of India (SEBI) to initiate an Initial Public Offering (IPO) consisting entirely as an Offer-for-Sale (OFS) of 105,463,892 Equity Shares.

Subscription date to apply for Asset Reconstruction Company (India) Limited is yet to be announced. Price band for the IPO is also pending to be declared.

Check DRHP
Check IPO Allotment
Visit Official Website
Issue Size:105,463,892 Equity shares
Fresh Issue:NA
Offer for Sale:105,463,892 Equity shares
Price Range:TBA
Lot Size:TBA
GMPPending

Asset Reconstruction Company (India) Limited important data points

Revenue, PAT, EBITDA

YearFiscal 2025
Networth₹ 2767.79 Cr
Revenue:₹ 596.42 Cr
EBITDA₹ 464.94 Cr
EBITDA Margin:~79.92%
PAT₹ 355.31 Cr
PAT Margin~57%
Face Value:₹ 10

IPO important dates

Open Date:TBA
Close Date:TBA
Anchor Investor BiddingTBA
Allotment Date:TBA
Refunds & Demat CreditTBA
Tentative Listing Date:TBA

Use of Proceeds

PurposeAmount
Subsidiary InvestmentN/A
Working capital requirementsN/A
Sales and MarketingN/A
General Corporate PurposeN/A

Asset Reconstruction Company (India) Limited Financial Data

202320242025
Revenue (₹ Cr)₹ 751.31₹ 570.14₹ 596.42
PAT (₹ Cr)₹ 239.12₹ 305.34₹ 355.31
Asset (₹ Cr)₹ 2789.57₹ 3656.68₹ 4395.98
Net Worth (₹ Cr)₹ 2239.74₹ 2462.51₹ 2767.79

Asset Reconstruction Company (India) Limited IPO Grey Market Premium

DateIPO PriceIPO GMPProfit per lot
30-Apr₹ –₹ –₹ –
29-Apr₹ –₹ –₹ –
28-Apr₹ –₹ –₹ –
27-Apr₹ –₹ –₹ –
26-Apr₹ –₹ –₹ –
Asset Reconstruction Company (India) Limited

Asset Reconstruction Company (India) Limited IPO Pros & Cons

Strengths:

  • Pioneer in India’s ARC sector & first mover advantage in stressed asset resolution.
  • Strong financial performance with consistent profitability and healthy margins.
  • Large market opportunity due to rising NPAs in Indian banking and financial sectors.
  • Backed by reputable promoters like SBI and Avenue Capital, adding credibility.
  • Diversified recovery portfolio across corporate, SME, and retail stressed assets.

Risks:

  • Revenue highly dependent on recovery of stressed assets, which is uncertain.
  • Strictly regulated industry under RBI and SARFAESI regulations.
  • Earnings can be volatile due to timing of recoveries and asset resolutions.
  • Intense competition from other Asset Reconstruction Companies like Edelweiss ARC.
  • IPO mostly an Offer For Sale (OFS), so the company itself does not receive fresh capital.

Asset Reconstruction Company (India) Limited Promoters – Pre offer equity (Approx)

Promoters%Shares
Avenue India Resurgence Pte. Ltd.~ 69.73 %
State Bank of India (SBI)~ 19.95 %
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Asset Reconstruction Company (India) Limited Promoters – Pre offer equity (Approx)

Application TypeLot SizeNo. of LotNo. of SharesInvestment Amount
Retail (Min)–1–₹ –
Retail (Max)–13–₹ –
HNI (Min)–14–₹ –
HNI (Max)–66–₹ –
Big HNI (Min)–67–₹ –

Lead Managers / Registrars of Asset Reconstruction Company (India) Limited

Lead / Book Running Lead ManagersIIFL Capital Services Ltd,
IDBI Capital Markets & Securities Ltd,
JM Financial Ltd
Registrar (RTA)MUFG Intime India Pvt Ltd

FAQ’S of Asset Reconstruction Company (India) Limited

  • It is India’s first ARC that buys and resolves stressed loans from banks and financial institutions to recover value through restructuring and settlements.

  • Asset Reconstruction Company is raising funds via IPO to enable existing investors to unlock value and list the company publicly; ARCIL itself won’t receive fresh capital.

  • The issue size of the IPO comprises entirely of OFS of ~10.54 Cr equity shares. It will be listed on BSE and NSE platform.

  • Key risks include performance depends on recovering stressed assets, which is uncertain and can make revenues volatile and cyclical & IPO entirely being as OFS.

  • As a pioneer ARC with strong AUM and profit metrics, it stands to benefit from a rising stressed asset opportunity and industry visibility post‑listing.

  • Investors can apply for the IPO through ASBA via net banking or using UPI through registered stock brokers.

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