Asset Reconstruction Company (India) Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹139
Per ShareLot Size
107 Shares
Minimum Investment
₹14,873
Issue Size
₹732.97 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Asset Reconstruction Company (India) Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
88.47%
Promoter Holding (Post-Issue)
77.46%
Issue Type
Book Building
ISIN
INE148G01016
About the Company
We are an asset reconstruction company ("ARC") operating across India and are engaged in the business of acquiring stressed assets from banks and financial institutions and implementing resolution strategies through restructuring, enforcement of rights on underlying securities and settlement aimed at maximizing recovery and optimizing the value of such stressed assets in order to generate revenue streams. We are pioneers in the asset reconstruction industry since we were the first ARC to be incorporated in India having obtained our certificate of registration to commence our operations on August 29, 2003 from the Reserve Bank of India ("RBI") pursuant to the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act"). We completed our first acquisition of stressed assets in December 2003 and have been operating for over two decades.
Industry Overview
The NPAs for retail credit was approximately Rs. 1.5 trillion, as of March 31, 2025. The total stress under the retail segment in banks and NBFCs has increased from Rs. 3,469.5 billion in Fiscal 2020 to Rs. 6,924.5 billion in Fiscal 2025 at a CAGR of 14.8%. The NPAs for MSME credit were approximately Rs. 1.46 trillion, as of March 31, 2024. The overall stress in the MSME segment has grown at a CAGR of approximately 11.1% over the last two Fiscals from approximately Rs. 6.8 trillion as of March 31, 2022 to approximately Rs. 8.4 trillion as of March 31, 2024. The overall stress under the corporate segment is approximately Rs. 6.5 trillion as of March 31, 2024. The overall stress under the corporate segment in banks and NBFCs has decreased at a CAGR of 2.8% from Rs. 6,896.1 billion in Fiscal 2022 to Rs. 6,512.2 billion in Fiscal 2024.
Company History
Our Company was originally incorporated as "Asset Reconstruction Company (India) Limited " as a public limited company under the Companies Act, 1956 through certificate of incorporation dated February 11, 2002, issued by the RoC, received a certificate of commencement of business from the RoC on May 7, 2003 and received the certificate of registration from the Reserve Bank of India to commence business on August 29, 2003.
Growth Strategy
- Increase the Proportion of Our Retail, and SME and Other Loans.
- Continue to Grow Our Corporate Loans Business.
- Continue to Focus on Effective Use of Technology and Data Analytics to improve operational efficiency.
- Strengthening our Retail Loan Collection Capabilities
- Pursue New Business Opportunities
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of up to 52,731,946 equity shares of face value of Rs. 10 each ("Equity Shares") of Asset Reconstruction Company (India) Limited ("Company" or the "Issuer") for cash at a price of Rs. 139 per equity share (Including a share premium of Rs. 129 per equity share) ("Offer Price") aggregating up to Rs. 732.97 Crores (the "Offer"). The offer comprises of an offer for sale of up to 52,731,946 equity shares of face value of Rs. 10 each (the "Offered Shares") aggregating up to Rs. 732.97 Crores (the "Offer for Sale"), comprising up to 24,823,910 equity shares aggregating up to Rs. 345.05 Crores by Avenue India Resurgence pte. ltd., up to 10,963,062 equity shares aggregating up to Rs. 152.39 Crores by State Bank of India (Together Referred to as "Promoter Selling Shareholders"), up to 16,244,858 equity shares aggregating up to Rs. 225.80 Crores by Lathe Investment Pte. Ltd. ("Investor Selling Shareholder") and up to 700,116 equity shares aggregating up to Rs. 9.73 Crores by The Federal Bank Limited ("Other Selling Shareholder", and along with the promoter selling shareholders and investor selling shareholder, the "Selling Shareholders"). The offer shall constitute [*] % of the post-offer paid-up equity share capital of the company. Price Band: Rs. 139/- per equity share of face value of Rs. 10 each. The floor price 13.90 times the face value of the equity shares, respectively. Bids can made for a minimum of 107 equity shares of face value of Rs. 10 each and in multiples of 107 equity shares of face value of Rs. 10 each thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- India's First ARC with the second Largest AUM.
- Expertise in Acquiring Stressed Assets with increasing investment in SRs.
- Our Ability to Implement Resolution Strategies and a Robust Collections Framework
- Track Record of Consistent Financial and Operational Performance.
- Experienced Board of Directors, Management Team and Marquee Investors.
- Our revenue and profits are largely dependent on the value and composition of our AUM and any adverse change in our AUM may impact our revenue and profit.
- We bid for stressed assets through a competitive bidding process including the Swiss challenge and anchor process. If we are unable to source and acquire a sufficient amount of stressed assets at appropriate prices, our growth, competitive position, financial condition and results of operations may be adversely affected.
- Our inability to recover outstanding amounts from the stressed assets we acquire and manage in a timely manner, or at all, could adversely affect our business, results of operations, financial condition or cash flows.
- A significant portion of the company's stressed assets are under its corporate loans business vertical (representing 68.75%, 75.48% and 78.51% of the company AUM as of March 31, 2026, March 31, 2025, March 31, 2024, respectively). Any factors impacting stressed assets in the corporate loan vertical may have an adverse impact on its business, cash flows, financial condition and results of operations.
- An inability to make accurate stressed asset acquisition decisions could adversely impact the company's business, financial condition and cash flows.