Asset Reconstruction Company (India) Limited, pioneer in the asset reconstruction industry and the first ARC to be incorporated in India, has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).
The IPO comprises of an offer for sale of up to 105,463,892 Equity Shares of face value of Rs 10 each. The offer for sale comprises of up to 68,739,034 equity shares of face value of Rs 10 each by Avenue India Resurgence Pte. Limited, up to 19,445,000 equity shares of face value of Rs 10 each by State Bank of India, up to 16,244,858 equity shares of face value of Rs 10 each by Lathe Investment Pte. Limited and up to 1,035,000 equity shares of face value of Rs 10 each by The Federal Bank Limited.
Established in 2002, Asset Reconstruction Company (India) Limited is a pioneer in the asset reconstruction industry and was the first ARC to be incorporated in India. Having over two decades of operations, it was the second largest in terms of assets under management (AUM) at Rs 15230.031 Crores and had the second highest net worth among private ARCs in India at Rs 2462.511 Crores. ARCIL operates across three business verticals including corporate loans, SME and other loans, and retail loans classifying acquired stressed assets based on internally assessed resolution mechanism. It primarily derives its revenue from management fees/ trusteeship fees, portfolio recovery fees, income from investments and write backs.
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ARCIL is promoted by Avenue India Resurgence Pte. Ltd (an affiliate of Avenue Capital Group) and the State Bank of India, which are also identified as sponsors of the Company under the SARFAESI Act. The company is led by a professional and experienced management team who have extensive domain expertise and understanding of our industry and vision to scale up the business including Mr. Pallav Mohapatra, Chief Executive Officer and Managing Director, Mr. Phanindranath Kakarla, President, Mr. Pramod Gupta, Chief Financial Officer, Mr. Rajat Agarwal, Head of acquisitions for Corporate, SME and Other loans as well as Mr. Anup Satish Mittal, Head of acquisitions for Retail loans.
It operates across 12 states in the country and is engaged in the business of acquiring stressed assets from banks and financial institutions as well as implementing resolution strategies through restructuring,
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