Asset Reconstruction Co.(India) IPO
MainboardAsset Reconstruction Company (India) Limited (Arcil) is an asset reconstruction company focused on acquiring, managing, and resolving distressed loan portfolios from banks and financial institutions.
Verdict: Apply for listing gains
Review
1. Grey market premium
★★★★★The grey market premium indicates a moderate expected listing upside of approximately 19.4% over the issue price.
2. Company financials
★★★★★Earnings remain inherently cyclical and subject to lumpiness based on the timing and quantum of distressed asset resolutions.
3. Subscription status
★★★★★Overall bidding momentum is developing steadily across institutional and retail categories.
4. Anchor investors
★★★★★Anchor book allocation shows participation from key domestic institutional investors.
Company financials
Amount ₹ in Crores
| Period ended | Revenue | Expense | EBITDA | PAT | Assets |
|---|---|---|---|---|---|
| FY23 | ₹312.45 | ₹218.60 | ₹135.20 | ₹78.40 | ₹2,145.80 |
| FY24 | ₹385.12 | ₹254.30 | ₹172.50 | ₹102.15 | ₹2,430.50 |
| FY25 | ₹442.80 | ₹289.10 | ₹198.40 | ₹121.65 | ₹2,780.20 |
Subscription
Anchor investors
Anchor book details pending.
Anchor placement data is not fully disclosed in the initial public offer filings.
Risks
- RegulatoryStringent Reserve Bank of India regulations governing provisioning, security receipts, and capital adequacy can directly affect operational flexibility.
- CyclicalRevenues and cash flows are highly dependent on the banking system's stressed asset supply and resolution cycles.
- LitigationAsset recovery is frequently delayed by lengthy legal proceedings before the NCLT, DRT, and appellate courts.