ARCIL IPO: Charting India's First Asset Reconstruction Company's Market Journey

Asset Reconstruction Company (India) Ltd, backed by Avenue Capital Group, is set to go public with a significant initial public offering. The IPO will not raise fresh capital but will see promoters divest up to 10.54 crore shares, according to the draft red herring prospectus filed with Sebi.

Prominent shareholders, including Avenue Capital's affiliate Avenue India Resurgence Pte Ltd, State Bank of India, and Singapore's GIC, are among those parting with significant stakes. Despite not receiving any funds from this public issue, ARCIL maintains a strong business in debt resolution and stressed asset acquisition.

Established in 2003, ARCIL was India's pioneering asset reconstruction company, rapidly growing to manage assets worth Rs 15,230 crore. It remains a key player in the sector, competing with firms like Edelweiss ARC and JM Financial ARC. The IPO's book-running lead managers include IIFL Capital Services and IDBI Capital Markets & Securities.

(With inputs from agencies.)