Minerva Capital Research Solutions

Asset Reconstruction Co.(India)

ListedListed 17 Sep 2026MainboardNSE: ARCILCheck allotment
Current price₹ 130.36−6.22% since issue
Listing day0%
Issue price
₹ 139
Issue size
₹ 732.97 Cr.
Min. investment
₹ 14,873
Listing price
₹ 139
Subscribed
20.1x
Lot size
107 shares
RoNW
13.95%
Debt / Equity
0.39
PAT margin
51.95%
EBITDA margin
78.21%
EPS
₹ 12.55
NAV
₹ 94.78
Promoter stake
77.45%

About

Asset Reconstruction Company (India) Limited was started in February 2002. It is an asset reconstruction company, usually shortened to ARC. Its business is to buy loans that borrowers have stopped repaying, called stressed assets, from banks and financial institutions, and then work on recovering as much value as possible from them. It got its certificate of registration from the Reserve Bank of India in August 2003 to carry on securitisation and asset reconstruction, and it is recognised as the first ARC set up in India. The company works across three areas, corporate loans, SME and other loans, and retail loans. It buys both single loans and whole portfolios, secured as well as unsecured, and then uses different methods to recover the money, including resolution, restructuring, enforcement of security, settlement and collection, depending on what the underlying asset is. It earns in two ways, through fee income and through income on its own investments. As on 31 March 2026 it worked out of 13 offices across 12 states and had 206 permanent employees, supported by registered valuers, collection agents and empanelled lawyers. Its promoters are Avenue India Resurgence Pte. Ltd. and State Bank of India.

Timeline

  1. Opens
    9 Sep
    done
  2. Closes
    11 Sep
    done
  3. Allotment
    15 Sep
    done
  4. Refunds
    16 Sep
    done
  5. Demat credit
    16 Sep
    done
  6. Listing
    17 Sep
    done

Grey market premium (GMP)

GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Highest
₹ 30 on 8 Sep 2026
Lowest
₹ 12 on 16 Sep 2026
First quoted
₹ 27 on 7 Sep 2026

Subscription

How many times each investor group bid for its share, as of 17 Sep 2026, 06:31 PM IST.

How much to apply for

The smallest and largest bids for each kind of investor at the upper price band.

Lots and amounts by investor type
Retail (Min)1107₹ 14,873
Retail (Max)131,391₹ 1,93,349
S-HNI (Min)141,498₹ 2,08,222
B-HNI (Min)687,276₹ 10,11,364

Company overview

Financials

Financials by year
Assets4,460.853,263.822,795.34
Total Income785.08623.4574.11
Profit After Tax407.84355.32305.34
EBITDA588.93491.88416.36
NET Worth3,079.392,767.82,462.51
Reserves and Surplus2,751.182,439.192,135.2
Total Borrowing1,205.5305.93149.95

Strengths

  • Profit has grown every year, from Rs 305.34 crore in FY2024 to Rs 355.32 crore in FY2025 and Rs 407.84 crore in FY2026.
  • Income grew 26% in FY2026, from Rs 623.40 crore to Rs 785.08 crore.
  • The margin is very high. Profit after tax of Rs 407.84 crore on total income of Rs 785.08 crore is a PAT margin of 57%.
  • The balance sheet is large, with a net worth of Rs 3,079.39 crore as on 31 March 2026.
  • It is the first ARC set up in India and has been registered with the RBI since August 2003. An RBI licence is hard to get and keeps new competition out.
  • The promoters are strong institutions, Avenue India Resurgence Pte. Ltd. and State Bank of India.
  • It works across corporate, SME and retail loans rather than one segment, and has been building up the retail side.
  • It has a nationwide setup with 13 offices across 12 states, supported by valuers, collection agents and empanelled lawyers.

Risks

  • The entire issue is an offer for sale. Not a single rupee comes to the company, and there are no objects of the issue because all the money goes to the selling shareholders.
  • Borrowing has gone up eight times in two years, from Rs 149.95 crore in FY2024 to Rs 305.93 crore in FY2025 and Rs 1,205.50 crore in FY2026.
  • The P/E and the return on capital employed are not stated in the data available to us, so the issue cannot be compared with peers on those measures from here.
  • Return on net worth is only 13.59% even though the PAT margin is 57%, which shows how much capital this business has to keep locked up to earn that profit.
  • Recovery from stressed loans is lumpy and slow. It depends on court and NCLT timelines and on settlements, none of which the company controls.
  • The supply of business depends on banks choosing to sell stressed loans. If banks hold on to their bad loans or the credit cycle is clean, there is less to buy.
  • This is a tightly regulated business. Any RBI change on ARC capital, provisioning or how recoveries are booked would directly change the economics.
  • Promoter holding will come down from 88.47% to 77.45% after the issue.

Promoters

  • Avenue India Resurgence Pte.Ltd
  • State Bank of India
Promoter holding88.47%→77.45%before → after the issue · down 11.02 points

Anchor investors

21 anchors put in ₹ 219.9 Cr., including 12 mutual funds.

Anchor investors
GOLDMAN SACHS ETF TRUST-GOLDMAN SACHS INDIA EQUITY ETF3,59,73452.27%
GOLDMAN SACHS FUNDS-GOLDMAN SACHS INDIA EQUITY PORTFOLIO25,17,9243515.92%
ASHOKA WHITEOAK ICAV-ASHOKA WHITEOAK INDIA OPPORTUNITIES FUND14,38,829209.1%
WHITEOAK CAPITAL MULTI CAP FUND7,19,361104.55%
WHITEOAK CAPITAL BANKING & FINANCIAL SERVICES FUND4,67,5906.52.96%
WHITEOAK CAPITAL BALANCED HYBRID FUND1,07,9631.50.68%
WHITEOAK CAPITAL AGGRESSIVE HYBRID FUND1,43,91520.91%
ADITYA BIRLA SUN LIFE SMALL CAP FUND18,70,4672611.82%
BANDHAN SMALL CAP FUND18,70,4672611.82%
TATA MULTI ASSET ALLOCATION FUND18,70,4672611.82%
JM AGGRESSIVE HYBRID FUND3,59,73452.27%
JM VALUE FUND3,59,73452.27%
GROWW BANKING & FINANCIAL SERVICES FUND50,2910.70.32%
GROWW SMALL CAP FUND2,37,5323.31.5%
GROWW MUTUAL FUND - VALUE FUND71,91110.45%
BAJAJ LIFE INSURANCE LTD.7,19,468104.55%
INDUSIND GENERAL INSURANCE CO.LTD.3,59,73452.27%
SOCIETE GENERALE-ODI7,19,468104.55%
BOFA SECURITIES EUROPE SA-ODI6,07,6308.453.84%
INTEGRATED CORE STRATEGIES (ASIA) PTE.LTD.6,07,6308.453.84%
GOLDMAN SACHS BANK EUROPE SE-ODI3,59,73452.27%

Registrar, lead managers and documents

Listing on
BSE, NSE
Face value
₹ 10 a share
Registrar
MUFG Intime India Private Limited
Lead managers
JM Financial Ltd., IDBI Capital Markets & Securities Ltd., IIFL Capital Services Limited
Basis of allotment
Open

IPO dates, prices, grey market premium (GMP), subscription and the company overview: IPO Guru, updated three times a day. GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Our recommendations are research opinions, not investment advice. Read the offer document (RHP) and consult your financial adviser before investing.