Asset Reconstruction Company files draft IPO papers with SEBI

Asset Reconstruction Company (India) Limited, the first ARC to be incorporated in India, has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).The IPO comprises of an offer for sale of up to 10.5 crore equity shares of face value of ₹10 each. Under the OFS, promoter selling shareholders and investor 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.

Meanwhile, IIFL Capital Services, IDBI Capital Markets & Securities Limited and JM Financial Limited are the bankers to the issue.
The proceeds of the offer will go to the selling Shareholders, and ARC will not receive any portion of the proceeds. After the completion of the offer,  the company’s promoters – Avenue India and SBI – will continue to collectively hold the majority of the shareholding in the company and will continue to exercise significant influence over the business. The promoters collectively held a 89.68% stake in the ARC as of August 1.Founded in 2002, ARC is engaged in the business of acquiring stressed assets from banks and financial institutions and implementing resolution strategies. The company was the second most profitable ARC in India during Fiscal 2024 with a profit for the year of ₹ 305.3 crore on a standalone basis and was also the second largest ARC in India in terms of assets under management (AUM) with ₹ 15,230 in AUM as of March 31, 2024, according to draft papers.

The company operates across three business verticals – Corporate loans, SME and other loans and retail loans,  classifying the stressed assets acquired based on the resolution mechanism employed. As of March 31, 2025, ARC acquired ₹ 72,657.3. crore in total principal debt at a cost of

₹ 38,155.6 crore or 52.51% of the total principal debt and had made recoveries of ₹ 28,459.7 crore.

ARC will be listed on the BSE and the National Stock Exchange.