About the Business
Incorporated in February 2002, Asset Reconstruction Company (India) Limited (Arcil) is the pioneer of the Indian distressed debt resolution ecosystem, recognized as the premier asset reconstruction company registered with the Reserve Bank of India (RBI registration received in August 2003).
The company acquires non-performing and stressed assets from commercial banks, financial institutions, NBFCs, and housing finance companies, executing resolution, restructuring, enforcement, settlement, and collection mechanisms to optimize asset recoveries. Its operations are structured across three primary verticals: Corporate Loans, SME & Other Loans, and Retail Loans, generating revenue through management fee income and returns on its Security Receipts (SR) investments.
- India’s first ARC commanding one of the largest Assets Under Management (AUM) in the distressed debt and turnaround ecosystem.
- Extensive domestic network operating through 13 regional offices across 12 states, supported by 206 permanent professionals and an empanelled pan-India network of legal, valuation, and recovery partners.
- Strategic expansion into retail stressed assets backed by dedicated collection infrastructure, proprietary legal platforms, and data analytics.
- High-pedigree backing with institutional sponsor shareholding led by State Bank of India and Avenue India Resurgence.
The company’s promoters are Avenue India Resurgence Pte. Ltd. and State Bank of India.
Financial Overview
Asset Reconstruction Company (India) Ltd. has shown sustained financial momentum, with total income expanding by 26% and profit after tax (PAT) increasing by 15% between FY25 and FY26.
| Metric (₹ Cr) | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Total Income | ₹785.08 | ₹623.40 | ₹574.11 |
| Operating EBITDA | ₹588.93 | ₹491.88 | ₹416.36 |
| PAT (Profit After Tax) | ₹407.84 | ₹355.32 | ₹305.34 |
| Net Worth | ₹3,079.39 | ₹2,767.80 | ₹2,462.51 |
| Reserves & Surplus | ₹2,751.18 | ₹2,439.19 | ₹2,135.20 |
| Total Borrowings | ₹1,205.50 | ₹305.93 | ₹149.95 |
| Total Assets | ₹4,460.85 | ₹3,263.82 | ₹2,795.34 |
Restated Standalone Figures | Source: RHP Filings
Key Financial Metrics (FY26)
Issue Reservation
| Investor Category | Allocation Limit |
|---|---|
| QIB Shares Offered | Not more than 50% of the Offer |
| Retail (RII) Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Objects of the Issue
The public offer is a 100% Offer for Sale (OFS) of 5,27,31,946 equity shares aggregating to ₹732.97 Cr. The company will not receive any proceeds from the issue, and all funds will go directly to the selling shareholders:
- Avenue India Resurgence Pte. Ltd. (Promoter) ₹345.05 Cr (2,48,23,910 Shares)
- Lathe Investment Pte. Ltd. (Corporate) ₹225.80 Cr (1,62,44,858 Shares)
- State Bank of India (Promoter) ₹152.39 Cr (1,09,63,062 Shares)
- The Federal Bank Ltd. (Corporate) ₹9.73 Cr (7,00,116 Shares)
Asset Reconstruction Company (India) Limited holds institutional heritage as the pioneer of India’s ARC industry, benefiting from sovereign-scale promoter sponsorship (State Bank of India) and proven asset recovery resolution capabilities across corporate and retail debt cycles.
The business delivers outsized operating profitability, with an EBITDA margin of 78.21% and a net PAT margin of 51.95%, supported by a well-capitalized net worth of ₹3,079.39 Cr and comfortable leverage (Debt/Equity of 0.39). At the upper price band of ₹139, the issue is valued at an undemanding P/E of 11.08x and a Price-to-Book value of 1.47x against an offer-price market capitalization of ₹4,516.07 Cr. While the offering is a pure OFS with zero primary capital infusion into operations, the reasonable entry multiple and specialized systemic role make this an interesting portfolio consideration for medium-to-long-term investors.
