Upcoming IPO: Asset Reconstruction Company Filed DRHP with SEBI

In a significant expansion, he first ARC in India, Asset Reconstruction Company (India) Limited, has submitted the draft red herring prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds via an initial public offering (IPO).

Asset Reconstruction Company IPO Details

Asset Reconstruction Company IPO is entirely an offer for sale of up to 10.5 crore equity shares of face value of ₹10 each. Under the OFS, the selling shareholders include Avenue India Resurgence, selling up to 6.8 crore shares, State Bank of India, offloading 1.9 crore equity, Lathe Investment Pte., selling 1.6 crore shares, and lastly, The Federal Bank offering 10.3 lakh shares for sale.

IIFL Capital Services, IDBI Capital Markets & Securities Limited and JM Financial Limited are the bankers to the Asset Reconstruction Company IPO.

Use of IPO Proceeds

The proceeds of this upcoming IPO will go to the selling Shareholders, and ARC will not receive any portion of the proceeds. Following the completion of the offer, Avenue India and SBI, the company's promoters, will continue to own the majority stake and have substantial control over the operations of the business. As of August 1, the promoters' combined ownership of the ARC was 89.68%.

About Asset Reconstruction Company

Founded in 2002, ARC is engaged in the acquisition of stressed assets from banks and other financial institutions as well as the implementation of resolution solutions.

Based on the resolution mechanism used, the company classifies the stressed assets it acquires and runs across three business verticals: corporate loans, SME and other loans, and retail loans. By March 31, 2025, ARC had recovered ₹ 28,459.7 crore and bought ₹ 72,657.3 crore in total principal debt at a cost of ₹ 38,155.6 crore, or 52.51% of the entire principal debt.

Also Read: Upcoming IPOs This Week: 3 Mainboard, Including JSW Cement and 2 SME IPO are Set to Open for Bidding 

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