Asset Reconstruction Company (India) Limited IPO — the disclosed details
Opening soon
Asset Reconstruction Company (India) Limited's IPO opens 9 September 2026 and closes 11 September 2026, bidding at Rs 132-139 per share; the Red Herring Prospectus is dated 1 September 2026.
This page restates what Asset Reconstruction Company (India) Limited (Arcil) has filed for its initial public offering — the Red Herring Prospectus dated 1 September 2026 — as filed, with no added opinion. If the vocabulary is new — DRHP, price band, buckets, allotment — read how an Indian IPO actually works first.
This issue is structured differently from the others on this desk: it is a 100% Offer for Sale. There is no Fresh Issue at all — the cover page states the Fresh Issue size as “Not applicable.” No money from this Offer goes to the Company; every rupee goes to the four Selling Shareholders in proportion to what they sell. The number of shares in the market grows by zero; only who holds them changes.
What the company does
Asset Reconstruction Company (India) Limited (CIN U65999MH2002PLC134884), known as Arcil, is an asset reconstruction company (ARC) — it acquires stressed assets (non-performing loans) from banks and financial institutions and pursues recovery through restructuring, enforcement of security or settlement. The RHP states Arcil was the first ARC incorporated in India, receiving its RBI certificate of registration on 29 August 2003 under the SARFAESI Act, and completed its first acquisition in December 2003.
Citing a CRISIL report the Company commissioned and paid for, the RHP states Arcil was the second-largest ARC in India by assets under management (AUM of Rs 1,68,525.70 million as of 31 March 2025) and had the second-largest net worth among private ARCs (Rs 27,677.98 million standalone, same date). It was the second most profitable private ARC in India in Fiscal 2025, with standalone profit for the year of Rs 3,553.19 million. As of 31 March 2026 the Company operated through 13 offices across 12 states (including Delhi), employed 206 personnel, and worked with 218 registered valuers, 206 collection agents and 988 empanelled lawyers. Its Registered and Corporate Office is at The Ruby, Senapati Bapat Marg, Dadar (West), Mumbai. The Promoters are Avenue India Resurgence Pte. Ltd. and State Bank of India.
What the money is for
There is no Fresh Issue, so there are no capex, working-capital or debt-repayment objects to report. The RHP’s stated objects of the Offer are simply to achieve the benefits of listing — enhanced visibility, a public market for the shares, and liquidity for existing shareholders. The RHP states plainly: “The Promoter Selling Shareholders are undertaking a partial divestment of their shareholding in order to realize a portion of their investment and thereby enhance their liquidity position.”
| Selling shareholder | Category | Equity Shares offered | Weighted average acquisition cost |
|---|---|---|---|
| Avenue India Resurgence Pte. Ltd. | Promoter Selling Shareholder | Up to 2,48,23,910 | Rs 55.62 |
| State Bank of India | Promoter Selling Shareholder | Up to 1,09,63,062 | Rs 36.76 |
| Lathe Investment Pte. Ltd. | Investor Selling Shareholder | Up to 1,62,44,858 | Rs 84.00 |
| The Federal Bank Limited | Other Selling Shareholder | Up to 7,00,116 | Rs 35.43 |
Acquisition costs are per the RHP, certified by J. Kala & Associates, Chartered Accountants, in a certificate dated 1 September 2026. All four sellers’ share counts are fixed in the RHP itself — unlike a Fresh Issue, an Offer for Sale’s share counts don’t depend on where the Offer Price lands within the band.
What the RHP flags as risks
The RHP lists these among the Company’s own risk factors, paraphrased here without added commentary:
- Revenue and profit are dependent on the value and composition of AUM, and any adverse change in either is flagged as a direct risk to the business.
- Concentration in the corporate loans business vertical, which the RHP states represented a majority share of stressed assets (68.75% in one of the three fiscals reported) — adverse developments specific to corporate-loan recoveries would disproportionately affect the business.
- Regulatory compliance risk with the RBI. Non-compliance with RBI observations made during any inspection could expose the Company to penalties and restrictions; the RHP also flags exposure to stricter future regulations.
- Recovery risk. The Company’s inability to recover outstanding amounts from acquired stressed assets in a timely manner is flagged as a risk to results of operations.
- Untraceable historical records. The RHP discloses that the Company is unable to trace certain of its historical records, including being unable to locate the Form FC-TRS for certain historical share transfers — for these it has relied on RBI acknowledgements, board notings and bank statements instead. The RHP states it cannot assure that no legal or regulatory action will be initiated in relation to this gap.
- Legal proceedings involving the Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and Senior Management are disclosed as outstanding.
- Resolution-applicant risk under the Insolvency and Bankruptcy Code. Acting as a resolution applicant exposes the Company to delays in approval and implementation of resolution plans, and challenges to those plans by statutory authorities or other creditors.
The numbers as filed
| Item | As filed |
|---|---|
| Face value | Rs 10 per Equity Share |
| Price band | Rs 132 (floor) – Rs 139 (cap) per share (as reported; not fixed in the RHP itself) |
| Fresh issue | None — this Offer is 100% Offer for Sale |
| Offer for Sale | Up to 5,27,31,946 Equity Shares (fixed) |
| Aggregate issue size | Up to ~Rs 733 Cr (as reported) |
| Lot size | 107 Equity Shares |
| Minimum retail investment | Rs 14,873 for 1 lot at the cap price |
The RHP itself leaves the Offer Price and aggregate Offer value as blanks, to be filled in once the Offer Price is fixed through the Book Building Process — but because every seller’s share count is fixed (no Fresh Issue to size against the price), the 5,27,31,946-share Offer for Sale total is a filed number, not a derived one. Rs 132–139 is the band as reported by Chittorgarh, not stated as a number in the RHP itself.
Restated financials, as filed in the RHP (consolidated basis; the RHP also discloses standalone figures separately, which run higher — e.g. standalone PAT was Rs 4,078.44 million in FY2026):
| Particulars (Rs million, consolidated) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue from operations | 7,216.92 | 5,817.57 | 6,058.24 |
| Profit after tax attributable to the Company | 3,516.88 | 3,295.08 | 3,304.65 |
In Rs crore (own conversion, 1 crore = 10 million): revenue ~721.69 / 581.76 / 605.82; PAT ~351.69 / 329.51 / 330.47, for FY2026 / FY2025 / FY2024 respectively.
Who can actually sell on listing day
Because this Offer has no Fresh Issue, the post-Offer share count equals the pre-Offer share count exactly — 32,48,97,140 shares throughout. The RHP’s lock-in schedule here follows the standard periods (unlike three other issues on this desk in the same window, whose Minimum Promoters’ Contribution locks for 3 years instead — this RHP states 18 months plainly).
| Who | Locked for, per this RHP |
|---|---|
| Minimum Promoters’ Contribution (20% of post-Offer capital, excluding OFS shares) | 18 months from the date of Allotment |
| Promoters’ holding above the 20% minimum | 6 months from the date of Allotment |
| All other pre-Offer shareholders (non-promoter, non-OFS) | 6 months from the date of Allotment, with the standard VCF/AIF (Category I or II)/FVCI carve-out (6 months from their own date of purchase instead) |
| Anchor Investors | 50% of shares allotted locked 90 days from Allotment; the remaining 50% locked 30 days from Allotment |
The figures below are computed directly from the RHP’s own filed share counts — no cap-price estimation is needed here, since every OFS share count is fixed:
| Step | Shares (as filed) | % of capital |
|---|---|---|
| Offer for Sale (fixed; there is no Fresh Issue) | 5,27,31,946 | 16.23% |
| Locked or not offered — the rest of the register (promoter lock-ins + other pre-Offer holders) | 27,21,65,194 | 83.77% |
| Total capital (unchanged by this Offer) | 32,48,97,140 | 100.00% |
Anchor bidding is scheduled for Tuesday, 8 September 2026, one working day ahead of the 9 September open, and had not taken place as of this page’s publication. Up to 60% of the QIB Portion may be allocated to Anchor Investors on a discretionary basis, and QIBs get not more than 50% of the Offer, so anchor allocation could run from 0 up to roughly 1,58,00,000 shares (about 4.9% of capital), locked 30/90 days. That portion, once finalised, would come out of the 16.23% “Offer for Sale” figure above, not add to it. The final split lands with the exchanges’ published anchor list.
A lock-in is not a forecast of anything — it is a restriction on selling; it says who may trade, not what the price will do.
This table reflects the RHP dated 1 September 2026, as of 3 September 2026.
Dates and mechanics
| Event | Date |
|---|---|
| Anchor Investor bidding | Tuesday, 8 September 2026 |
| Bid/Offer opens | Wednesday, 9 September 2026 |
| Bid/Offer closes (UPI mandate confirmation by 5:00 p.m.) | Friday, 11 September 2026 |
| Finalisation of Basis of Allotment with the Designated Stock Exchange | On or about Tuesday, 15 September 2026 |
| Allotment / credit to demat accounts; initiation of refunds and ASBA unblock | On or about Wednesday, 16 September 2026 |
| Listing on BSE and NSE | On or about Thursday, 17 September 2026 |
| Bucket | Share of the Offer |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% |
| — of which, Anchor Investor Portion (discretionary) | Up to 60% of the QIB Portion |
| — Net QIB Portion reserved for Mutual Funds | 5% of the Net QIB Portion |
| Non-Institutional Bidders (NII) | Not less than 15% |
| Retail Individual Bidders (RIB) | Not less than 35% |
Book Running Lead Manager: IIFL Capital Services Limited. Registrar: MUFG Intime India Private Limited.
How to read this page
Link back to the explainer: how an Indian IPO actually works covers the buckets, the allotment lottery, the T+3 timeline, and the general lock-in framework behind the listing-day-float section above.
Information as of 3 Sep 2026, taken from the RHP linked above. This is not an IPO review and no subscribe/avoid rating is given. Figures move through the issue lifecycle — check the filed documents before acting on any of them. Grey-market premium is an unofficial, unregulated price with no exchange record, and is not referenced here as information. Where the standing notice below refers to hypothetical figures, that covers the illustrative worked examples used in the options posts on this site — every number on this page is reproduced from the filed documents cited above.
This post is for educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security or derivative contract. The author is not a SEBI-registered Research Analyst or Investment Adviser. Futures and options trading carries a high risk of loss and is not suitable for every investor — you can lose your entire premium, and more when selling naked. All figures and examples in this post, including the rupee premiums and price levels, are hypothetical and used only to illustrate the framework; they are not predictions, return promises, performance claims, or a recommendation to trade any specific instrument. Lot sizes and premiums change over time — always check current exchange data before trading. Please consult a SEBI-registered investment adviser before making any investment decisions.
Sources
- Red Herring Prospectus dated 1 Sep 2026 (hosted on the company's own investor-relations site) -- fetched and fully processed this session (pdftotext-equivalent full-text extraction, 36,331 lines) →
- Chittorgarh -- Asset Reconstruction Company (India) IPO page (as reported: price band, lot size, dates cross-check) →
Common questions
How does IPO allotment work?
Applications are matched against the minimum lot size within each investor category (retail, HNI, QIB). In the retail category every applicant is first considered for one minimum lot: when the retail portion has enough shares to give every retail applicant one lot, everyone gets at least one and the surplus goes proportionately to those who bid more. Only when there aren't enough shares for one lot each is a computerised draw of lots used to pick who gets that single lot — and then each successful applicant gets exactly one lot, however many they bid for. It is never first-come-first-served, so applying early doesn't improve the odds.
What does the anchor investor lock-in mean?
Anchor investors (institutions allotted shares a day before the issue opens) are locked in and can't sell for a fixed period — and the clock runs from the date of Allotment, not from listing. Under the SEBI ICDR Regulations, 50% of the anchor shares are locked for 90 days from Allotment and the remaining 50% for 30 days from Allotment. It restricts anchors only; it says nothing about how retail-held shares will trade.
When do I get my money back if I'm not allotted?
Under ASBA, your bank only blocks the funds in your account — it's never debited until allotment. If you get no shares (or only a partial allotment), the block is released without any separate refund step: SEBI requires your bank (the SCSB) to complete the unblock by the close of banking hours on the working day after the basis of allotment is finalised — under the T+3 timeline, the day before the shares list. If it takes longer than that, SEBI's compensation policy provides ₹100 per day or 15% per annum of the application amount, whichever is higher — but it is complaint-triggered, so you have to raise it with your bank or the issue's lead manager to claim it.
What is ASBA / the UPI mandate?
ASBA (Application Supported by Blocked Amount) blocks the bid amount in your bank account instead of debiting it upfront. Retail investors bidding through UPI approve a mandate request in their UPI app, which blocks the funds — the money leaves your account only if shares are actually allotted.
The rest of the site
This page is a record of what was filed and published, and it stops there. The rest of the site is about the part that comes after you own something — how much of it to own, how to write the decision down, and how to grade it later.
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