The company submitted its concept of Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) on Saturday.
Avenue, who currently owns a 69.73% interest in the company, will sell 68.7 million shares, reducing the company to 48.57%. SBI will discharge 19.4 million shares and crop its interest from 19.95% to 13.96%, according to the DRHP. GIC Affiliate DRAI investment will completely leave the company by selling its interest of 5% (16.2 million shares), while the Federal Bank will sell 1 million shares, which reduces the importance to 0.95% of 1.27%.
Arcil does not publish new shares in the IPO. IIFL Capital, Idbi Capital and JM Financial are the chief managers of the issue.
Arcil, founded in 2002, was the first Activa Construction company from India, supported by banks such as Idbi Bank, SBI and Icici Bank. It is currently the second largest arc in India by assets in management (RS 15,230 crore). The company generates income through management and trusteeship fees, portfolio repair costs, investment income and writingbacks.
Over the years, various banks have left the company, with Avenue acquiring most of their interests. Avenue and SBI are currently the promoters, who jointly have 89.68% of the company. In 2022, Avenue Capital acquired an interest of 44.6% of Icici Bank, Idbi Bank and Icici Home Finance for almost RS 840 Crore (RS 58 per share). Punjab National Bank was the last to leave and sold its interest of 10% in March 2023 against RS 60.53 per share. For the fiscal year ending on March 31, 2025, Arcil reported a net profit of RS 355.31 CRORE on income from the activities of RS 596.42 Crore.
From March 2025 it had acquired the total main debt of RS 72,657.30 Crore for a cost of RS 38,155.63 Crore or 52.51% of the main amount and had recovery of RS 28.459.70 CRORE.
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