Arcil files for IPO, public list of eyes as India’s oldest assets -reconstruction company

Arcil files for IPO, public list of eyes as India’s oldest assets -reconstruction company

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Asset Reconstruction Company (India) Limited (Arcil), the first assets -weder construction company that is being founded in India, has submitted its Concept Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) for a first public offer.

The IPO will be an offer for sale of a maximum of 10.54 crore shares of Face Value RS 10 each. The offer includes a maximum of 6.87 crore shares through Avenue India Resurgence PTE. Ltd, up to 1.94 crore shares by State Bank of India, up to 1.62 crore shares through lathe in investment pte. Ltd, and a maximum of 10.35 Lakh shares through the Federal Bank, the company said in a press release of 2 August.

Pioneer in assets -reconstruction


Arcil, founded in 2002, describes herself as a pioneer in the Indian Activarecon construction industry and was the first arch that was included in the country. From March 31, 2024, it was the second largest in terms of assets that are managed on RS 15.230.031 CRORE and had the second highest net value between private arches in RS 2,462,511 crore.arcil operates in three vertical, company loans, SME and other loans. It derives income from management costs, portfolio repair costs, investment income and writingbacks.

The company is sponsored by Avenue India Resurgence PTE. LTD and the State Bank of India, under the Sarfaesi Act. The management team includes CEO and MD Mr. Pallav Mohapatra, President Mr. Phanindranath Kakarla and CFO Mr. Pramod Gupta.

Retassing portfolio that expands in the midst of sector shift


According to a crisil report cited in the DRHP, “the stressed asset option from business to non-business loans” shifts, “in particular the retail segment experiences” rising stress levels “. Arcil has increased the share of shopping in his portfolio, with the retail trade AUM rising from RS 1,559,107 Crore from March 2023 to RS 2,747.88 Crore from March 2025, a compound annual growth rate of 20.79%. As of March 31, 2025, the company had RS 72,657.307 CRORE A total of RS a total of RS 72,657.307 CRORE A total of RS a total RS a total of RS 38.155,632 crore and recovered restoration of RS 28.459.7 Crore. During FY25, FY24 and FY23, the RS company acquired 3,975,871 Crore, RS 2.068,982 Crore and RS 4,288.962 Crore of stressed assets, respectively.

Financial performance and activities


Arcil reported income from the activities of RS 596,423 Crore and the total income of RS 623,399 Crore for the year ending on March 31, 2025. The profit after the tax was on RS 355,319 Crore, with a pat -margin of 57%.

For FY24, Arcil had the lowest expenses as a percentage of the average total AUM at 0.57% at the top seven arches and the highest return on assets at 11.48%. The capital-enamel ratio was 99.03%, about 40% higher than the next highest private arc, while the debt / equity ratio was the lowest under the top six private arches at 0.06.

On March 31, 2025, the company had formed 652 trusts, of which 453 remained open and 199 was closed. Arcil cooperates with 201 registered appraisers, 163 collection agents and 950 empaneled lawyers, and maintains relationships with 30 private banks, 28 banks in the public sector, 2 cooperative banks, 41 non-bank financial companies, 17 home finance companies and seven other institutions.

Bankers for the issue


IIFL Capital Services, Idbi Capital Markets & Securities and JM Financial act as bankers for the matter.

Read also | 8th Pay Commission: What RS 3 Lakh Crore Boost for government employees means for stock market investors

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)

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