Arcil sets Rs 132-139 band for Rs 733 crore all-OFS IPO

The Development

Asset Reconstruction Company (India) Limited, which trades as Arcil, has fixed a price band of Rs 132 to Rs 139 per equity share for its initial public offering, an entirely secondary sale of up to 52,731,946 equity shares of face value Rs 10 each. At the cap price the offer aggregates to about Rs 733 crore, and at the floor to about Rs 696 crore. The band was set ahead of the subscription window, following the red herring prospectus filed with SEBI, which is dated 1 September 2026 and was filed with the Registrar of Companies, Mumbai.

Per the RHP, anchor investor bidding is scheduled for Tuesday, 8 September 2026, with the offer opening on Wednesday, 9 September 2026 and closing on Friday, 11 September 2026. The shares are proposed to be listed on the BSE and the National Stock Exchange of India, with the NSE as the designated stock exchange. The band-setting was reported by The Economic Times, whose coverage surfaced the milestone, the stage at which the offer terms become legally operative ahead of the book-building window.

The Company

Arcil describes itself in the RHP as an asset reconstruction company operating across India, engaged in acquiring stressed assets from banks and financial institutions and implementing resolution strategies through restructuring, enforcement and settlement. The company discloses that it was the first ARC to be incorporated in India, having obtained its certificate of registration from the Reserve Bank of India on 29 August 2003. Citing the CRISIL Report, the RHP states Arcil was the second most profitable private ARC in India in Fiscal 2025 and the second largest by assets under management, with a standalone AUM of Rs 16,852.57 crore (Rs 168,525.70 million) as of 31 March 2025.

Per the RHP, the company primarily derives revenue through management and trusteeship fees, portfolio recovery fees, income from investments and write-backs. It discloses that it has worked with 32 private sector banks, 28 public sector banks and 51 non-banking financial companies, among other selling institutions, and operates from 13 offices across 12 states as of 31 March 2026. The promoters are Avenue India Resurgence Pte. Ltd. and State Bank of India.

On the restated standalone financials, the company discloses total income of Rs 785.08 crore (Rs 7,850.77 million) for Fiscal 2026, against Rs 623.40 crore in Fiscal 2025 and Rs 574.11 crore in Fiscal 2024. Restated profit for the year was Rs 407.84 crore (Rs 4,078.44 million) in Fiscal 2026, Rs 355.32 crore in Fiscal 2025 and Rs 305.34 crore in Fiscal 2024, per the RHP, with standalone net worth of Rs 3,079.39 crore as of 31 March 2026.

The Offer Structure

The issue is structured entirely as an offer for sale, with no fresh issue component, so the company will not receive any proceeds. Per the RHP, the selling shareholders are Avenue India Resurgence Pte. Ltd., offering up to 24,823,910 shares as a promoter selling shareholder; State Bank of India, offering up to 10,963,062 shares as a promoter selling shareholder; Lathe Investment Pte. Ltd., offering up to 16,244,858 shares as an investor selling shareholder; and The Federal Bank Limited, offering up to 700,116 shares as an other selling shareholder. The RHP states the objects of the offer are to achieve the benefits of listing and to carry out the offer for sale.

The book running lead managers are IIFL Capital Services Limited, IDBI Capital Markets & Securities Limited and JM Financial Limited, with MUFG Intime India Private Limited as registrar. The bid lot and minimum application amount are set out in the RHP and the exchange bid-detail pages. Readers working through the arithmetic of an allotment can use Oquilia's lumpsum calculator or CAGR calculator, and prior coverage sits on the /news desk.

Risk Factors

The RHP lists a set of internal risk factors that the company is required to disclose. Among them, the company discloses that its revenue and profits are largely dependent on the value and composition of its AUM, and that any adverse change in AUM may affect revenue and profit. The RHP also lists the risk that non-compliance with observations made by the RBI during inspections could expose the company to penalties and restrictions.

The company discloses that it bids for stressed assets through competitive processes, including the Swiss challenge and anchor process, and that an inability to source assets at appropriate prices could affect its growth. Among the risk factors it discloses is a concentration in its corporate loans vertical, which represented 68.75 per cent of AUM as of 31 March 2026. The RHP further lists the risk that an inability to recover outstanding amounts from acquired stressed assets in a timely manner could adversely affect the business. These are the company's own disclosures, not an external assessment.

What Happens Next

From the price-band stage, the standard mechanics run through the anchor book on 8 September 2026, followed by the three-day subscription window from 9 to 11 September 2026. After the close, the basis of allotment is finalised by the registrar in consultation with the designated stock exchange, after which refunds and the unblocking of application amounts are processed for unsuccessful or partially successful applicants, and shares are credited to the demat accounts of allottees.

Listing then follows on the BSE and the NSE, at a price discovered on debut against the issue price. Subscription figures are published category-wise by the exchanges as the window progresses, covering the qualified institutional buyer, non-institutional and retail portions. Each is a step recorded by the registrar and the exchanges, a matter of official record rather than a forecast of demand.

FAQ

Should I apply for this IPO?

Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.

What is the price band?

The price band is Rs 132 to Rs 139 per equity share of face value Rs 10. At the cap price the offer for sale of up to 52,731,946 shares aggregates to about Rs 733 crore, and at the floor to about Rs 696 crore.

When does the issue open and close?

Per the RHP, anchor bidding is on 8 September 2026, the offer opens on 9 September 2026 and closes on 11 September 2026. The shares are proposed to list on the BSE and the NSE.

Is this a fresh issue or an offer for sale?

It is entirely an offer for sale. Per the RHP there is no fresh issue, so the company receives no proceeds. The selling shareholders are Avenue India Resurgence, State Bank of India, Lathe Investment and The Federal Bank.

Where can I read the RHP?

The red herring prospectus dated 1 September 2026 is available on SEBI's website and on the websites of the NSE and BSE, as well as the company's site arcil.co.in.

This report is based on the red herring prospectus filed with SEBI by Asset Reconstruction Company (India) Limited. It was surfaced via coverage in The Economic Times.