Asset Reconstruction Co.(India) IPO

About the company

Asset Reconstruction Company (India) (ARCIL) is an asset reconstruction company engaged in the acquisition and resolution of stressed financial assets. Incorporated in 2002, ARCIL was the first asset reconstruction company in India and started operations in February 2002. The company acquires stressed assets, including Non-Performing Assets (NPAs), Special Mention Accounts (SMA 0/1/2) and written-off accounts, from banks and financial institutions and works towards their resolution through restructuring, settlements, enforcement of security interests and insolvency proceedings. ARCIL is the second largest ARC in India by AUM. Its AUM stood at ₹16,852.57 crore as of March 31, 2025, with a 12.6% market share and increased to ₹20,149.99 crore as of March 31, 2026. Corporate stressed assets made up around 68.7% of its portfolio in FY26, while retail accounted for 23.5% and SME and other assets for around 7.7%. The growth in AUM in the retail loans portfolio is impressive, with a CAGR of 56.3% in the period starting from March 31, 2024, till March 31, 2026, from ₹1,942.3 crore to ₹4,744.7 crore, respectively. The firm gets stressed assets via the following structures: cash acquisitions, co-investor acquisitions, ordinary security receipt acquisitions and structured acquisitions, with structured acquisitions contributing the maximum share to AUM, being 55.7% as of March 31, 2026. Since the company’s inception, the firm has dealt with 32 private sector banks, 28 public sector banks, 2 co-operative banks, 51 NBFCs, 18 housing finance companies, and 7 other selling institutions. The stressed assets acquired by the company in FY24, FY25, and FY26 were ₹2,068.98 crore, ₹3,975.87 crore, and ₹5,958.80 crore, respectively. The company invested ₹944.97 crore, ₹1,281.49 crore and ₹2,023.05 crore, respectively, in FY24, FY25 and FY26 for acquiring these stressed assets, whereas its investment ratio was 45.67% in FY24, reducing to 32.23% in FY25 and 33.95% in FY26. At the end of March 31, 2026, the company had acquired a total principal debt of ₹89,909.34 crore at a total cost of ₹44,114.43 crore, which translates to a cost of acquisition of 49.07% of principal debt as compared to 52.51% at the end of March 31, 2025, and 52.94% at the end of March 31, 2024. The total amount of outstanding stressed assets acquired was ₹1,60,371.66 crore as of March 31, 2026, as compared to ₹1,35,523.63 crore a year ago. The company’s total collections were ₹3,484.39 crore for FY26, compared to ₹3,678.15 crore for FY24. In the cumulative total since inception up to March 31, 2026, the company had recorded recoveries of ₹31,914.78 crore against total principal debt acquired of ₹89,909.34 crore. Apart from that, ARCIL was able to recover ₹365.67 crores, ₹974.46 crores, and ₹852.00 crores on AUM older than eight years in FY26, FY25 and FY24, respectively. By March 31, 2026, the firm had created a total of 706 trusts, out of which 219 were closed (resolved) and 487 were open. The total SR Redemption ratio was 50.78% by March 31, 2026, against 51.79% by March 31, 2025. The Overall capital adequacy ratio of the firm stood at 65.3% during FY26, even though it was less than that in FY25 (88.4%) and FY24 (98.14%), due to the rise in total risk-weighted assets to ₹3,945.46 crore during FY26 from ₹2,414.86 crore during FY24. Total retail borrowers on the firm’s platform increased by 227.3% from 1,006,232 as of March 31, 2024, to 3,293,588 as of March 31, 2026, highlighting the rapid scaling up of the retail loans business. The firm had a dedicated force of 67 people dealing with retail acquisition and resolution as of March 31, 2026. The real estate stressed assets were 34.34% of the AUM of the company as of March 31, 2026, indicating substantial sectoral concentration in corporate borrowing. India's asset reconstruction industry had 27 operational ARCs managing around ₹1.33 lakh crore of assets as of March 2026. The industry was established after the introduction of the SARFAESI Act in 2002. ARCs buy stressed assets from banks and financial institutions and work towards recovering them through different resolution methods. This helps banks clean up their balance sheets and focus on their lending business. The industry has become more concentrated, with the top seven ARCs accounting for around 74% of total AUM as of March 31, 2025. ARCIL's market share increased to 12.6% in FY25 from 10.3% in FY24 and 11.6% in FY23. Among private ARCs with a longer operating history, ARCIL and Phoenix were the only players to report AUM growth between FY23 and FY25. The mix of stressed assets is also changing. Corporate NPAs have declined while Retail and SME assets are becoming more important for ARCs. Retail credit increased from around ₹32 lakh crore in March 2020 to ~₹74 lakh crore in March 2026, a CAGR of 14.8%. The growth in retail lending, particularly unsecured loans, could lead to a larger pool of stressed assets for ARCs. ARCs are also acquiring assets at an earlier stage of stress. After the RBI allowed ARCs to acquire Special Mention Accounts in October 2022, SMA accounts made up around 30% of new ARC acquisitions in FY25, compared with 14% in FY24. Acquiring these accounts earlier gives ARCs more time to work on their resolution. The Expected Credit Loss (ECL) framework is another factor that could increase the supply of stressed assets. The framework will come into effect from April 2027 and will require lenders to make provisions at an earlier stage of stress. Stage 2 assets, or loans overdue by 30 to 90 days, will have a provisioning floor of around 5% compared with around 0.4% currently. This could lead banks and financial institutions to sell or write off more stressed and SMA accounts, particularly in unsecured and retail lending. ARCIL is well placed to benefit from these changes as it has exposure to corporate, retail and SME stressed assets. Its large AUM and established position in the industry should help it participate in new asset acquisitions as the stressed asset market shifts towards retail and SME accounts. The company's low leverage and strong capital adequacy also provide room to increase its acquisition activity. At the same time, higher capital requirements for ARCs could lead to consolidation in the industry and benefit larger, well-capitalised players. Going ahead, the shift towards retail and SME assets, higher availability of SMA accounts and the expected increase in stressed asset sales ahead of the ECL transition should provide opportunities for ARCIL to expand its portfolio. The company can also use its experience in corporate resolutions and its IBC eligibility to participate in larger stressed asset transactions. Now, Asset Reconstruction Company (India) is launching its initial public offering (IPO), which is complete offer for sale of ₹733 crore. Its shares will be listed on the NSE and BSE. ### **How to apply for Asset Reconstruction IPO?** If you are interested in this investment opportunity but unsure how to apply for an Asset Reconstruction IPO, follow these steps. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Asset Reconstruction IPO on Upstox: - - Log in to your Upstox account, using your six-digit PIN - After logging in, click on ‘Discover’ - On the ‘Discover’ tab, you will find the ‘Invest in IPO’ section - Under the Invest in IPO section, look for the ‘Asset Reconstruction IPO’ tab and click on it - Now fill in all the required information, like ‘bid price’ and ‘lot size’ - Confirm and click on ‘Apply’ - Accept the mandate on your UPI app

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Financial performance (₹ Cr)

Subscription breakup (final, times)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   09 Sept 2026

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   11 Sept 2026

   Last day to place your bid

3. Basis of Allotment

   Completed
   15 Sept 2026

   Share allotment finalised

4. Refund Initiation

   Completed
   16 Sept 2026

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   16 Sept 2026

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   17 Sept 2026

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.