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Asset Reconstruction Co.(India) IPO
23.31xsubscribed

Asset Reconstruction Co.(India) IPO

Finance - NBFC
listed
₹14,124Min. investment

Asset Reconstruction Co.(India) Limited IPO Details

SectorFinance - NBFC
Price range₹132 – ₹139
IPO type
Regular
Lot size107 shares
Issue size₹733Cr
Red Herring Prospectus
Read
Market cap
₹4,516CrLower than sector avg
RevenueApr 2025 - Mar 2026
₹721.6CrLower than sector avg
Growth rate3Y CAGR
9.14%Higher than sector avg

Asset Reconstruction Co.(India) IPO Subscription Status

Date
QIB
NII
Retail
Total
09-Sep-26
0.0 times (X)
0.86 times (X)
0.36 times (X)
0.28 times (X)
10-Sep-26
0.01X
2.68X
0.81X
0.7X
11-Sep-26
27.96X
46.37X
3.19X
23.31X

As on 09-Sep-26, 5:30 PM

Asset Reconstruction Co.(India) IPO Timeline

  1. Pre-apply
    7 Sep 2026
  2. Bid start
    9 Sep 2026
  3. Bid end
    11 Sep 2026
  4. Allotment
    15 Sep 2026
  5. Release of funds
    16 Sep 2026
  6. Demat transfer
    16 Sep 2026
  7. Listing
    17 Sep 2026

About Asset Reconstruction Co.(India) Limited

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

Asset Reconstruction Co India Limited IPO Analysis

IPO REVIEW

Asset Reconstruction Co.(India) IPO | Analysis Video

Should you apply?

Watch our analysts break down the Asset Reconstruction Co India Limited IPO — business model, financials, valuation and key risks — to help you decide whether to apply. The video covers the IPO price band, important dates, and what the subscription numbers mean for retail investors.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily

Strength and Weakness

Strong capital position and low leverage

ARCIL had a lower debt-to-equity ratio among private ARCs in the peer set at 0.39x as of March 2026, compared with 0.74x for Phoenix and 1.29x for JM Financial. Its CRAR stood at 65.31% in FY26, giving it headroom to increase leverage for future growth, particularly as retail and SME acquisitions are largely cash-based.

Diversified portfolio beyond corporate assets

Corporate assets accounted for around 69% of ARCIL's FY26 portfolio, Retail accounted for around 24% and SME and other assets for around 8%. ARCIL and Phoenix were the only private ARCs with a vintage of more than five years in the peer set to report positive AUM growth during FY23-FY25, as established ARCs have increasingly moved towards Retail and SME assets.

Eligibility to participate in IBC resolutions

ARCIL is among the five ARCs with NOF above ₹1,000 crore as of March 2025 and is therefore eligible to act as a Resolution Applicant under the IBC. This allows the company to participate directly in resolution processes in addition to its traditional asset reconstruction activities.

Growing retail and SME opportunity

Corporate NPAs have declined in recent years, while Retail and SME assets are becoming a larger opportunity for ARCs. Retail credit increased from around ₹32 lakh crore in March 2020 to ~₹74 lakh crore in March 2026, creating a larger pool of stressed retail assets that ARCs can acquire and resolve.

ECL transition could increase stressed asset supply

RBI's Expected Credit Loss framework, which becomes effective from April 2027, will require higher provisioning at an earlier stage of stress. Stage 2 assets could require a provisioning floor of around 5%, compared with around 0.4% currently. This may encourage lenders to sell or write off stressed and SMA accounts ahead of the transition, creating additional acquisition opportunities for ARCs.

Potential new business as resolution manager

The proposed Securitisation of Stressed Assets Framework could allow ARCs to act as resolution managers for stressed assets transferred to a Special Purpose Entity. This could provide ARCs with an additional business line by allowing them to earn fees for managing the resolution process even when they are not the owner of the stressed assets.

Objectives of Asset Reconstruction Co India Limited IPO

Carry out the offer for sale
The IPO is a complete offer-for-sale (OFS). Net IPO proceeds will go to selling shareholders.
Listing on stock exchanges
The company want to achieve the benefits of listing its shares on the stock exchanges.

Compare

CompanyRevenue*3Y growthPATMarket capP/E ratioD/E ratio
This IPO₹721.6Cr9.14%₹322.6Cr₹4,516Cr12.850.41
This sector (avg.)₹789.63Cr0.02%₹117.25Cr₹6,213.48Cr52.320.85
₹41,701.78Cr---₹9,423.31Cr₹1,91,911.8Cr21.004.16
₹2,042.91Cr---₹1,612.59Cr₹1,61,687.5Cr100.630.03
₹20,214.17Cr---₹5,352.36Cr₹1,53,746.4Cr20.963.36

*Revenue for financial year 2025-26. Lower P/E and D/E ratios are generally preferred.

Asset Reconstruction Co.(India) IPO Contact Details

Company NameAsset Reconstruction Co.(India) Limited

How to apply for Asset Reconstruction Co.(India) IPO?

  1. Step 1

    Log in to your Upstox account to access IPO investments. Next, select the current IPO section.

  2. Step 2

    Specify IPO details. Enter the number of lots and the price you wish to apply for.

  3. Step 3

    Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.

  4. Step 4

    Mandate Notification. Your UPI app will receive a mandate notification to block funds.

  5. Step 5

    Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.

Asset Reconstruction Co India Limited IPO FAQs

Investors can apply for the Asset Reconstruction Co.(India) IPO through their Demat account via the stock exchange or through their broker.
The issue size of the Asset Reconstruction Co.(India) IPO is 733 Cr.
Pre-applying for an IPO allows you to submit your application before the official subscription period begins.
The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.
Asset Reconstruction Co.(India) IPO will be open between 2026-09-09 and 2026-09-11.
Asset Reconstruction Co.(India) IPO allotment date is 2026-09-16. For Asset Reconstruction Co.(India) IPO allotment status check, you can visit the website of the registrar of the IPO.
For Asset Reconstruction Co.(India) IPO, the IPO registrar is MUFG Intime India Private Limited. You can check Asset Reconstruction Co.(India) IPO allotment status on the website of the registrar.
The shares are proposed to be listed on the BSE and NSE.
The Asset Reconstruction Co.(India) IPO shares will typically be credited to your demat account one working day before the IPO's listing date, provided your application is successfully allotted.
The Asset Reconstruction Co.(India) IPO lot size is 107 and minimum order quantity is 107.
Asset Reconstruction Co.(India) IPO has set the price band for its IPO at 139 per equity share with a face value of 10.