ARCIL IPO Review: Price, Dates and FinancialsARCIL IPO Review: Price, Dates and Financials

The ARCIL IPO opens on September 9 and closes on September 11, 2026. ARCIL, or Asset Reconstruction Company (India) Limited, is India’s first asset reconstruction company, meaning it buys bad loans from banks and works on recovering that money. This entire IPO is existing shareholders selling part of their stake; there’s no new money coming into the company, so the ₹733 crore raised goes to those shareholders, not to ARCIL’s own books.

IPO Snapshot

Event	Date
IPO Opens	September 9, 2026
IPO Closes	September 11, 2026
Allotment Date	September 15, 2026
Refund / Fund Unblock	September 16, 2026
Shares Credited to Demat	September 16, 2026
Listing Date (BSE, NSE)	September 17, 2026

Price Band and Lot Size

Detail	Value
Price Band	₹132 to ₹139 per share
Face Value	₹10 per share
Lot Size	107 shares
Minimum Investment	₹14,124 to ₹14,873
Offer Type	100% Offer for Sale, no fresh issue
Shares on Offer	5,27,31,946 shares
Total Issue Size	Approximately ₹696 to ₹733 crore
QIB Allocation	Not more than 50%
Retail Allocation	Not less than 35%
NII Allocation	Not less than 15%

Because this is entirely an offer for sale, every rupee an investor pays goes to one of four existing shareholders, not into ARCIL’s own working capital.

What Does ARCIL Actually Do

ARCIL buys stressed loans, the ones banks can’t recover on their own, and tries to get that money back using legal and negotiated routes. It was the first company of its kind registered in India, getting its licence from the RBI in August 2003, and today it’s the second-largest private player in this space by the total value of assets it manages.

The business runs across three lanes: corporate loans, SME and other business loans, and retail loans. Once ARCIL buys a bad loan, it uses one of a few paths to recover money, pushing the case through the insolvency process, negotiating a settlement directly with the borrower, selling off the underlying collateral, or taking the matter to a debt recovery tribunal.

ARCIL’s two Promoters are State Bank of India and Avenue India Resurgence Pte Ltd, an affiliate of the global investment firm Avenue Capital Group. Together they currently hold close to 90% of the company. This IPO isn’t a full exit for either of them; after the sale, Avenue India Resurgence is expected to still hold roughly 62% and SBI roughly 17%, meaning the two promoters together keep close to 79% of the company. A third shareholder, Lathe Investment Pte Ltd, is selling its entire 5% stake and exiting completely, while The Federal Bank Limited is trimming a small part of its holding.

The Money Numbers

Metric	FY24	FY25	FY26
Total Income (₹ Crore)	609.49	607.84	749.92
Profit After Tax (₹ Crore)	330.47	329.51	351.69
Total Assets (₹ Crore)	3,656.69	4,395.99	5,726.40

Income stayed roughly flat between FY24 and FY25, then jumped sharply in FY26, up about 23% year on year. Profit followed a similar pattern. The business also runs on unusually high margins; profit after tax came in at close to half of total income in FY26, which happens because once a bad loan is bought and being worked on, there isn’t much additional cost involved in continuing to collect on it.

One number worth flagging: total borrowings rose sharply, from ₹149.95 crore in FY24 to ₹305.93 crore in FY25 to ₹1,205.50 crore in FY26, roughly an eightfold increase over two years. This wasn’t accidental; ARCIL borrowed more to fund outright cash purchases of retail and SME bad loans rather than paying partly through security receipts, which is a shift in how it funds new purchases. Its debt-to-equity ratio moved from 0.06 to 0.11 to 0.41 over the same period, still a manageable level, but a real jump worth watching rather than dismissing.

Objects of the Issue

There isn’t a traditional “objects of the issue” section here in the way a fresh issue IPO has one. Since this is a complete offer for sale, ARCIL will not receive any money from this IPO. The stated purpose is simply to let existing shareholders sell part of their holding and to get ARCIL listed, which brings visibility, a public market for its shares, and liquidity for its investors going forward.

Strengths

• India’s first asset reconstruction company and the second-largest private one by assets managed, with a well-recognised name in the industry.
• Backed by two large, credible promoters, State Bank of India and Avenue Capital Group, both of whom are retaining the bulk of their stake after this IPO rather than fully exiting.
• An unusually high-margin business model: once a bad loan is bought, recovering more money from it doesn’t require much additional spending.
• A consistent history of paying dividends, ₹3 per share in both FY24 and FY25, with ₹1 per share recommended for FY26.
• No other listed company in India does exactly what ARCIL does, so it could draw investor interest simply for being the only option in this space on the exchange.

Risks

• The business depends entirely on getting money back from borrowers who’ve already defaulted once; this is inherently unpredictable, and legal cases can drag on for years.
• Total borrowings jumped roughly eightfold in two years to fund a shift toward cash-based loan purchases, and while the debt-to-equity ratio is still low, the direction of travel adds financial risk that wasn’t there before.
• The RBI regulates this industry closely. Any change in rules around how ARCIL structures its purchases or how much capital it needs to hold could restrict how it operates.
• A large share of its loan book sits in corporate accounts, and the government’s own asset reconstruction company, NARCL, is competing for the same large corporate deals, which could squeeze the opportunities available to private players like ARCIL.
• This IPO brings no new money into the company. It’s a change in who owns the shares, not a funding event for ARCIL’s own growth plans.

How to Apply, Including Alice Blue Smart IPO

You can apply the regular way on Alice Blue: pick your investor category, choose your lot count, and submit your bid between September 9 and 11.

If you don’t want to track subscription numbers throughout the bidding window, Alice Blue’s Smart IPO feature applies on your behalf. Set your category and lot size once, confirm your UPI ID, and pick a rule for when your bid should go in: below 1x subscription, between 1x and 5x, or above 5x. The system tracks ARCIL’s live subscription numbers, automatically files your application once your rule is met, and then sends a payment request for you to approve. Nothing gets deducted until shares are actually allotted.

Frequently Asked Questions