Asset Reconstruction IPO
Asset Reconstruction Company (India) Limited is launching a mainboard book-building IPO with a total issue size of approximately ₹732.97 crore.
The issue is entirely an Offer for Sale (OFS) comprising approximately 5.27 crore equity shares. Since the IPO is completely an OFS, the company will not receive the proceeds from the shares sold by the existing shareholders.
The Asset Reconstruction IPO will open for subscription on 9 September 2026 and close on 11 September 2026. The shares are proposed to be listed on both NSE and BSE.
Asset Reconstruction IPO Details
Asset Reconstruction Company (India) Limited is coming up with a ₹732.97 crore mainboard IPO. The issue is structured entirely as an offer for sale by existing shareholders.
A total of approximately 5.27 crore shares will be offered through the IPO. The price band has been fixed at ₹132 to ₹139 per share.
Investors can bid for a minimum of 107 shares and thereafter in multiples of 107 shares. At the upper price band of ₹139, the minimum retail investment works out to ₹14,873.
The IPO is scheduled to open on 9 September 2026 and close on 11 September 2026. The proposed listing is on the NSE and BSE, with a tentative listing date of 17 September 2026.
Asset Reconstruction IPO Key Details
| Particulars | Details |
|---|---|
| IPO Open Date | 9 September 2026 |
| IPO Close Date | 11 September 2026 |
| IPO Size | ₹732.97 Crore |
| Price Band | ₹132 to ₹139 per share |
| Face Value | ₹10 per share |
| Lot Size | 107 Shares |
| Issue Type | Book Building |
| Issue Structure | Offer for Sale Only |
| Listing Exchange | NSE and BSE |
| Market Cap at Upper Band | ₹4,516.07 Crore |
| Expected Allotment | 15 September 2026 |
| Refund / Unblocking | 16 September 2026 |
| Demat Credit | 16 September 2026 |
| Tentative Listing Date | 17 September 2026 |
| IPO Registrar | MUFG Intime India Pvt. Ltd. |
Asset Reconstruction IPO Issue Size
| Issue Component | Shares | Approx. Amount |
|---|---|---|
| Total Issue | 5,27,31,946 | Up to ₹732.97 Cr |
| Fresh Issue | Nil | Nil |
| Offer for Sale | 5,27,31,946 | Up to ₹732.97 Cr |
The Asset Reconstruction IPO is a 100% Offer for Sale. Therefore, the entire amount raised through the issue will go to the selling shareholders rather than to the company.
Asset Reconstruction IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | Wednesday, 9 September 2026 |
| IPO Closes | Friday, 11 September 2026 |
| Allotment | Tuesday, 15 September 2026 |
| Refund / Unblocking | Wednesday, 16 September 2026 |
| Shares Credited to Demat | Wednesday, 16 September 2026 |
| Listing | Thursday, 17 September 2026 |
Asset Reconstruction IPO Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Net Offer |
| Retail Investors | Not less than 35% of the Net Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Net Offer |
Asset Reconstruction IPO Lot Size
The minimum application size is 107 shares. Investors can place additional bids in multiples of 107 shares.
| Investor Category | Lots | Shares | Investment at ₹139 |
|---|---|---|---|
| Retail Minimum | 1 | 107 | ₹14,873 |
| Retail Maximum | 13 | 1,391 | ₹1,93,349 |
| S-HNI Minimum | 14 | 1,498 | ₹2,08,222 |
| S-HNI Maximum | 67 | 7,169 | ₹9,96,491 |
| B-HNI Minimum | 68 | 7,276 | ₹10,11,364 |
About Asset Reconstruction Company (India) Ltd.
Incorporated in February 2002, Asset Reconstruction Company (India) Limited is an asset reconstruction company engaged in acquiring stressed assets from banks and financial institutions and working towards their resolution and recovery.
The company received its certificate of registration from the Reserve Bank of India (RBI) in August 2003 to commence securitisation and asset reconstruction activities. It is recognised as the first ARC incorporated in India.
The company operates across three principal business areas: Corporate Loans, SME and Other Loans, and Retail Loans. It acquires stressed secured and unsecured assets either individually or through portfolios.
Following acquisition, the company applies different resolution approaches depending on the underlying asset, including restructuring, enforcement, settlement and collection strategies.
Asset Reconstruction Company (India) Limited earns income primarily through fee income and investment income generated from its asset reconstruction activities.
As of 31 March 2026, the company operated through 13 offices across 12 states, including Delhi, and had 206 permanent employees.
Asset Reconstruction Company Business Model
- Stressed Asset Acquisition: The company acquires stressed assets from banks and other financial institutions.
- Corporate Loan Resolution: It works on resolution and recovery of stressed corporate credit exposures.
- SME Asset Resolution: The company also focuses on stressed assets belonging to small and medium-sized enterprises.
- Retail Loan Recovery: Its business includes acquisition and resolution of stressed retail loan portfolios.
- Multiple Resolution Strategies: Depending on the asset, the company may use restructuring, enforcement, settlement and collection mechanisms.
- Security Receipts: The company also invests in security receipts as part of its asset reconstruction operations.
Asset Reconstruction Company Business Strengths
- One of India’s established asset reconstruction companies with a long operating history.
- Recognised as the first ARC incorporated in India.
- Established relationships with banks, financial institutions, NBFCs and housing finance companies.
- Diversified exposure across corporate, SME and retail stressed asset segments.
- Nationwide operational presence supported by offices across multiple Indian states.
- Experience in acquiring stressed secured and unsecured assets.
- Multiple resolution and recovery strategies provide flexibility in managing different asset classes.
- Increasing focus on the retail stressed asset opportunity.
Asset Reconstruction Company Financial Performance
Asset Reconstruction Company (India) Limited reported growth in both income and profitability during FY2026.
Total income increased to ₹785.08 crore in FY2026 from ₹623.40 crore in FY2025, representing growth of approximately 26%.
Profit after tax rose to ₹407.84 crore in FY2026 from ₹355.32 crore in FY2025, an increase of approximately 15%.
| Particulars (₹ Crore) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Assets | 4,460.85 | 3,263.82 | 2,795.34 |
| Total Income | 785.08 | 623.40 | 574.11 |
| Profit After Tax | 407.84 | 355.32 | 305.34 |
| EBITDA | 588.93 | 491.88 | 416.36 |
| Net Worth | 3,079.39 | 2,767.80 | 2,462.51 |
| Reserves and Surplus | 2,751.18 | 2,439.19 | 2,135.20 |
| Total Borrowings | 1,205.50 | 305.93 | 149.95 |
Asset Reconstruction IPO Key Performance Indicators
| KPI | 31 Mar 2026 | 31 Mar 2025 |
|---|---|---|
| Debt / Equity | 0.39 | 0.11 |
| RoNW | 13.95% | 13.59% |
| PAT Margin | 51.95% | 57.00% |
| EBITDA Margin | 78.21% | 82.47% |
| NAV | ₹94.78 | ₹81.97 |
Asset Reconstruction IPO Valuation
At the upper IPO price of ₹139 per share, the estimated post-issue market capitalisation of Asset Reconstruction Company (India) Limited is approximately ₹4,516.07 crore.
| Valuation Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS | ₹12.55 | ₹12.55 |
| Market Capitalisation | — | ₹4,516.07 Cr |
Based on the upper price band of ₹139 and the reported EPS of ₹12.55, the implied P/E multiple is approximately 11.08x.
Asset Reconstruction IPO Objects of the Issue
The Asset Reconstruction IPO is completely an Offer for Sale. As a result, the company will not receive any portion of the IPO proceeds.
The money raised through the sale of shares will be received by the respective selling shareholders after applicable issue-related expenses.
Asset Reconstruction Company Shareholding Pattern
| Category | Pre-IPO | Post-IPO |
|---|---|---|
| Promoter and Promoter Group | 89.68% | 78.67% |
| Public | 10.32% | 21.33% |
| Total | 100% | 100% |
Company Promoters: Avenue India Resurgence Pte. Ltd. and State Bank of India.
Asset Reconstruction IPO Offer for Sale
The entire Asset Reconstruction IPO consists of an offer for sale. Existing shareholders are offering their shares to the public through the issue.
| Selling Shareholder | Category | Shares Offered | Amount (₹ Cr) |
|---|---|---|---|
| Avenue India Resurgence Pte. Ltd. | Promoter | 2,48,23,910 | 345.05 |
| State Bank of India | Promoter | 1,09,63,062 | 152.39 |
| Lathe Investment Pte. Ltd. | Corporate | 1,62,44,858 | 225.80 |
| The Federal Bank Ltd. | Corporate | 7,00,116 | 9.73 |
| Total | — | 5,27,31,946 | 732.97 |
Asset Reconstruction IPO Share Capital
| Particulars | Shares |
|---|---|
| Shares Outstanding Before IPO | 32,48,97,140 |
| Fresh Issue Shares | Nil |
| Shares Offered Through OFS | 5,27,31,946 |
| Shares Outstanding After IPO | 32,48,97,140 |
Asset Reconstruction Company Operating Network
As of 31 March 2026, Asset Reconstruction Company (India) Limited operated through 13 offices across 12 states, including its presence in Delhi.
The company had 206 permanent employees as of the same date. Its operations are additionally supported by registered valuers, collection agents and empanelled lawyers.
These resources support the company’s activities across asset acquisition, valuation, resolution, enforcement and collections.
Asset Reconstruction Company Competitive Strengths
- Long-standing presence in India’s asset reconstruction industry.
- Recognised as the first ARC incorporated in India.
- Strong network of relationships with banks and financial institutions.
- Exposure to corporate, SME and retail stressed assets.
- Established capabilities across valuation, acquisition, recovery and resolution.
- Nationwide presence through offices across multiple states.
- Experienced workforce supported by external legal and collection professionals.
- Ability to use multiple resolution and recovery strategies depending on the underlying asset.
Asset Reconstruction IPO Pros and Considerations
Potential Positives
- Established operating history in the asset reconstruction sector.
- Strong relationships with banks and financial institutions.
- Diversified presence across corporate, SME and retail assets.
- Revenue and profit growth reported in FY2026.
- High reported EBITDA and PAT margins.
- Experienced management and established recovery infrastructure.
Key Considerations
- The IPO is entirely an Offer for Sale and does not provide fresh capital to the company.
- Borrowings increased significantly during FY2026.
- Asset reconstruction businesses are exposed to recovery, legal and resolution-related uncertainties.
- Financial performance can be affected by the timing and outcome of stressed asset resolutions.
- Investors should evaluate the company’s valuation and business risks before applying.
Asset Reconstruction IPO Registrar & Lead Managers
IPO Registrar: MUFG Intime India Pvt. Ltd.
Book Running Lead Managers: IIFL Capital Services Ltd., IDBI Capital Markets & Securities Ltd. and JM Financial Ltd.
Asset Reconstruction IPO Quick Summary
Asset Reconstruction IPO is a mainboard public issue of approximately ₹732.97 crore. The IPO will open on 9 September 2026 and close on 11 September 2026.
The price band has been fixed at ₹132 to ₹139 per share and the minimum lot size is 107 shares. At the upper price band, one retail lot requires ₹14,873.
The entire issue consists of an Offer for Sale of 5,27,31,946 shares. There is no fresh issue component.
Asset Reconstruction Company (India) Limited is engaged in acquiring and resolving stressed assets from banks and financial institutions.
The company operates across corporate loans, SME and other loans, and retail loans, using various resolution, restructuring, enforcement, settlement and collection strategies.
For FY2026, the company reported total income of ₹785.08 crore and profit after tax of ₹407.84 crore.
At the upper IPO price of ₹139, the estimated market capitalisation is approximately ₹4,516.07 crore.
The shares are proposed to be listed on both NSE and BSE, with a tentative listing date of 17 September 2026.
Asset Reconstruction IPO FAQs
Disclaimer
This article is provided for educational and informational purposes only and should not be considered investment advice. IPO investments are subject to market risks. Investors should carefully review the company’s RHP, prospectus, financial statements and other official documents before making any investment decision.
IPO dates, price information, allotment schedules, subscription figures and listing dates may change based on official announcements. Investors should verify the latest information before applying for the IPO.
