Asset Reconstruction Company (India), also known as Arcil, is set to hit the Indian primary markets soon. The company will open its Rs 733 crore issue next week. The issue price band has been fixed at Rs 132 – 139 per share.
Arcil’s IPO is entirely an offer-for-sale as the shareholder group will offload more than 5 crore equity shares of Rs 10 each. The company, which is recognised as India’s first asset reconstruction company, will open its issue for public bidding on September 9.
Arcil IPO: Offer size and BRLMs
The Mumbai-based firm plans to raise Rs 732.97 crore through the OFS route as shareholders will offload 5.27 crore shares of Rs 10 each. Avenue India Resurgence, State Bank of India, Lathe Investment, and The Federal Bank are the entities divesting their stake from the ARC.
The IPO is being handled by IIFL Capital Services, IDBI Capital Markets, and JM Financial, while MUFG Intime India is the registrar to the issue.
Arcil IPO: Subscription timeline
The company will open its issue for anchor bidding on September 8, and the very next day, September 9, ARC’s IPO will open for public bidding. The offer will close on September 11, and investors are likely to receive their shares and refunds by September 15.
Its share allotment process is likely to wrap up by September 16, while the Asset Reconstruction Company (India) is expected to list on the NSE and BSE on September 17.
Arcil IPO: Lot size
In order to receive the ARC’s shares, retail applicants need to bid for a minimum of one lot, comprising 107 shares, translating into an investment of Rs 14,873, while the upper limit for retail investors is 13 lots.
Small high-net-worth individuals can bid for a minimum of 14 lots and a maximum of 67 lots, while big HNIs need to bid for a minimum of 68 lots in order to apply for the IPO.
Arcil IPO: Reserved portion size
In the investor category, 50% of the offer has been reserved for qualified institutional buyers (QIBs), while 15% of the issue has been reserved for non-institutional investors, and not more than 35% of the offer shall be allocated to retail investors.
About Asset Reconstruction Company
Asset Reconstruction Company (India), also known as Arcil, is primarily engaged in the business of acquiring stressed assets from banks and financial institutions. It is recognised as the first ARC to be incorporated in India and operates across three key business segments: Corporate loans, SME and other loans, and retail loans.