The ₹732.97 crore ARCIL IPO achieved 20.10 times subscription on the third day of bidding, with 74.19 crore shares bid against 3.69 crore shares on offer as of 17:00 IST on September 11, according to stock exchange data. The issue received bids for 74.19 crore shares against 3.69 crore shares on offer. Retail investors emerged as the strongest participants with 2.22 times subscription, while the non-institutional investor category was subscribed 5.68 times and the qualified institutional buyers category received 29.22 times subscription. The Grey Market Premium (GMP) for ARCIL IPO stands at ₹10.07% on September 11, indicating strong market sentiment and suggesting potential listing gains. The price band is fixed between ₹132-139 per share with a minimum lot size of 107 shares for retail investors, requiring a minimum investment of ₹14,873 at the upper end. As per Business Standard, the IPO will close today (September 11) and comprises entirely an offer-for-sale by existing shareholders, with the company not receiving any proceeds from the public offer.
Ahead of the public issue, ARCIL raised ₹219.89 crore through its anchor book, allotting 1.58 crore equity shares to 21 institutional investors at ₹139 per share. Several prominent global investors participated in the anchor allocation, including Goldman Sachs, Ashoka WhiteOak ICAV, Societe Generale, BofA Securities Europe and Integrated Core Strategies. Domestic mutual funds also accounted for a significant portion of the anchor placement, with ARCIL allotting 81.29 lakh shares to 12 schemes managed by six fund houses - White Oak Capital, Aditya Birla Sun Life AMC, Bandhan Mutual Fund, Tata Mutual Fund, JM Financial Mutual Fund and Groww Mutual Fund. The issue is structured as a 100% offer-for-sale (OFS) of 5.27 crore shares with no fresh issuance component, meaning the company will not receive any proceeds from the public offer. Moneycontrol reports that Avenue India Resurgence Pte. Ltd. and State Bank of India, classified as promoters, along with Lathe Investment Pte. Ltd. and Federal Bank, classified as investors, are the selling shareholders in the OFS. The IPO is managed by IIFL Capital Services Ltd., IDBI Capital Markets & Securities and JM Financial as merchant bankers.
SBI Securities has assigned a 'Neutral' rating to the ARCIL IPO, highlighting that ARCIL is the largest private ARC in India with significant presence across corporate, SME and retail loans. According to SBI Securities's analysis, at the upper price band of ₹139 per share, ARCIL is valued at approximately 1.5x FY26 price-to-book multiple, which appears reasonable considering the company's market leadership. The brokerage noted that ARCIL is expanding into two new verticals - offering collection services for retail loans to banks and purchasing stressed assets from MFIs, which could support future growth given its existing resolution and collection framework. However, SBI Securities cautioned that the business is lumpy in nature and not a steady compounding financial services business, with ARC profitability depending on multiple factors including stressed-asset acquisition, resolution timelines, recovery rates and economic conditions.
According to Business Standard, ARCIL, the first asset reconstruction company incorporated in India in August 2003, reported consolidated net profit of ₹228.76 crore and sales of ₹4,311.98 crore for the twelve months ended March 31, 2026. The company operates across three verticals - corporate loans, SME and other loans, and retail loans, generating a majority of its revenue from trust management fees and returns on its investments in security receipts (SRs). ARCIL acquires stressed assets from banks and financial institutions and implements resolution strategies through restructuring, enforcement of rights over underlying securities and settlements, with the aim of maximising recoveries and optimising the value of such stressed assets to generate revenue streams.
The promoter shareholding in ARCIL will decline to 78.67% post-IPO from 89.68% pre-IPO, following the completion of the offer-for-sale. Among the selling shareholders, Lathe Investment Pte is selling 1.6 crore equity shares and The Federal Bank is selling 0.1 crore equity shares through the OFS. The allotment for ARCIL IPO is expected to be finalised on September 15, 2026, with refunds for unsuccessful bidders on September 16 and crediting of shares to Demat accounts on the same day. The listing of ARCIL shares on NSE and BSE is scheduled for September 17, 2026, on a tentative basis. The lot size is 107 shares with a minimum retail application of one lot (₹14,873), maximum retail application of 13 lots (₹1,93,349), and maximum S-HNI application of 67 lots (₹9,96,491). As per ARCIL's red herring prospectus, the company expects that the listing of equity shares will enhance its visibility and brand and provide liquidity to existing shareholders.
