The grey market premium (GMP) for ARCIL is currently at ₹12 per share, implying a premium of around 9% over the upper end of its IPO price band of ₹139. However, GMP rates are speculative and do not guarantee the actual listing price. The shares may list at a price different from the level indicated by the grey market.
The ₹733 crore initial public offering (IPO) was subscribed 20.10 times by the close of bidding on September 11. Investors placed bids for 74.20 crore equity shares against 3.69 crore shares on offer.
Qualified institutional buyers (QIBs) subscribed 52.65 times, while the non-institutional investor (NII) portion was subscribed 15.69 times. The retail category saw subscription of 3.39 times.
ARCIL IPO: Issue size, price band and OFS details
The ARCIL IPO opened for subscription on September 9 and closed on September 11.
The ₹733 crore issue is entirely an Offer For Sale (OFS), meaning ARCIL will not receive any proceeds from the share sale.
Avenue India Resurgence Pte. Ltd. and State Bank of India, classified as promoters of the company, along with Lathe Investment Pte. Ltd. and Federal Bank, classified as investors, are the selling shareholders in the OFS.
The IPO was priced in the range of ₹132-₹139 per share. Each share has a face value of ₹10.
At the upper end of the price band, ARCIL is expected to have a market capitalisation of around ₹4,516 crore.
What does Asset Reconstruction Company of India do?
Asset Reconstruction Company of India Ltd. is an asset reconstruction company (ARC) registered with the Reserve Bank of India (RBI) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
The company acquires non-performing assets (NPAs) and stressed financial assets from commercial banks, financial institutions and non-bank financial companies (NBFCs). It works towards resolving these assets through restructuring, legal enforcement, settlements and other recovery mechanisms.
ARCIL operates across three verticals – corporate loans, small and medium enterprise (SME) and other loans, and retail loans.
A significant portion of its revenue comes from trust management fees and returns on investments in security receipts (SRs).
How have ARCIL’s financials performed?
ARCIL’s revenue increased from ₹574.1 crore in FY24 to ₹785 crore in FY26, representing a compounded annual growth rate (CAGR) of around 16.9%.
Operating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose to ₹589 crore in FY26 from ₹416.4 crore in FY24.
However, EBITDA margins have fluctuated over the period. The margin increased from 53.18% in FY24 to 57% in FY25 before declining to 51.95% in FY26.
The movement indicates that while operating EBITDA has grown, profitability margins have not followed a linear trajectory.
ARCIL does not have a direct listed peer in India, making a like-for-like valuation comparison difficult.
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