Asset Reconstruction Co.(India) IPO
Asset Reconstruction Co.(India) IPO is a mainboard IPO raising ₹733 Cr at ₹132 – ₹139 a share. It listed on 17 Sept 2026 at ₹139, 0.0% against its issue price of ₹139, and trades at ₹122 today (−12.0% since issue). It was subscribed 20× in total.
20.1 times more demand than shares on offer
populated partly populated we hold nothing here — the tab says why
What this company actually does
Read out of the prospectus’s business section, stripped of its marketing language.
Asset Reconstruction Company (India) Limited (ARCIL) buys stressed (defaulted) loans from banks and financial institutions in India and tries to recover money from them through restructuring, settlement, enforcement of security, or insolvency proceedings. It was the first ARC registered in India (RBI certificate dated August 29, 2003) and operates three business verticals: Corporate loans, SME and Other loans, and Retail loans. It works across India through 13 offices in 12 states.
How it earns
It sets up trusts that issue Security Receipts (SRs) to qualified investors (including the seller) to fund acquisitions of stressed assets; it earns fee income (management, collection and resolution fees) on the AUM managed in these trusts and investment income on its own share of SRs held in the trusts, with revenue also coming from fair-value gains on SRs and recoveries on previously written-down assets. On a standalone basis in FY2026, Fees and other income were 35.68% of Total Income and Other operating income were 24.37% (figures originally in ₹ million, converted at 1 crore = 10 million).
Who buys
Sellers of stressed assets are banks and financial institutions; the prospectus does not give concentration percentages for any single customer. Since inception, ARCIL has worked with 32 private sector banks (including 9 foreign banks), 2 co-operative banks, 28 public sector banks, 51 NBFCs, 18 housing finance companies, and 7 other selling institutions (4 insurance companies, 3 financial institutions). Buyers of its Security Receipts (its investor customers) include banks, FIs, insurance companies, ARCs, mutual funds, eligible NBFCs, HFCs, FIIs and other permitted non-institutional investors.
Scale
Operates 13 offices across 12 states (including Delhi) with 206 employees as of March 31, 2026; total AUM of ₹20,150 crore has acquired ₹89,909 crore in cumulative principal debt at a 49.07% acquisition cost and made cumulative recoveries of ₹31,915 crore across 706 trusts (487 active); FY2026 standalone revenue from operations ₹753.04 crore and PAT ₹407.84 crore (amounts originally in ₹ million).
What it says sets it apart
- First ARC incorporated in India (RBI registration August 29, 2003; first acquisition December 2003); second-largest ARC by AUM at ₹20,150 crore as of March 31, 2026 (AUM originally in ₹ million).
- Second-most-profitable private ARC in India in FY2025 with standalone PAT of ₹355.32 crore; highest PAT as % of average AUM (2.22%) and highest return on assets (11.73%) among the top 7 ARCs in FY2025.
- Lowest expense ratio (0.68% of average AUM) and lowest debt-to-equity ratio (0.11) among the top private ARCs in FY2025.
- Was one of only four ARCs in India with Net Owned Fund above ₹1,000 crore in October 2022, making it eligible to act as a resolution applicant under the IBC — an additional acquisition channel.
- Retail AUM grew from ₹1,942.30 crore to ₹4,744.76 crore between March 2024 and March 2026, a 56.30% CAGR, with technology-driven collections (proprietary platforms, data analytics) supported by 206 collection agents, 218 registered valuers and 988 empanelled lawyers as of March 31, 2026 (amounts originally in ₹ million).
Revenue mix
The prospectus gives overlapping breakdowns here, so the shares are not shown.
The numbers at a glance
The price they’re asking →derived: cut-off price Rs139 / stated EPS Rs10.82 (FY2026 (year ended March 31, 2026) diluted EPS from Restated Consolidated Financial Information). Stated figures are as printed in the prospectus; margins, growth and the borrowing ratio are computed from its own summary table. A multiple is one lens, not a verdict.
The last few years in numbers
From the prospectus’s own summary financial table (restated standalone). Margins and growth are computed from the stated figures; everything else is as printed.
| Period | Revenue | Profit after tax | PAT margin | Net worth | Borrowings |
|---|---|---|---|---|---|
| FY2026 | ₹753 Cr+26% | ₹408 Cr+15% | 54.2% | ₹3,079 Cr | ₹1,205 Cr |
| FY2025 | ₹596 Cr+5% | ₹355 Cr+16% | 59.6% | ₹2,768 Cr | ₹306 Cr |
| FY2024 | ₹570 Cr | ₹305 Cr | 53.6% | ₹2,463 Cr | ₹150 Cr |
Where the money goes
The offer →100% of this issue is existing shareholders cashing out — only the fresh issue reaches the business.
How its cohort has done
101 mainboard issues listed in 2026 that we can price today. This is the group this issue belongs to.
Neither figure is a forecast for this issue — they describe what happened to comparable issues. Full cohort analytics →
How the book finished
The category split is the number worth reading, not the total.
QIB: 53× their allocation. Retail: 3.39×.
What we hold for this issue
Stated up front on every issue, so a sparse page reads as a fact about the source rather than a broken one.
Led by JM Financial Limited — median +15.5% across the 107 of its issues we can price. All lead managers →
What happens when
What to watch
- 100% of the issue is offer for sale — only ₹0 Cr of new money reaches the company.
- The asking multiple is 12.8× earnings, and the issuer names no listed peers to compare it against.
- Its cohort's record: median +9.4% since issue price, 36.6% now below it — a base rate, not a forecast.
Each line restates a disclosure from the prospectus or the exchanges — nothing here is a recommendation to apply to this issue.
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