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Time of India
02-08-2025
- Business
- Time of India
ARCIL IPO: Avenue Capital-backed ARCIL files IPO draft papers with Sebi; GIC to exit, SBI to pare stake
Avenue Capital Group-backed Asset Reconstruction Company (India) Ltd (ARCIL) has filed its draft red herring prospectus (DRHP) with markets regulator Sebi on Friday to raise funds through an initial public offering (IPO). The IPO will be entirely an offer for sale (OFS) of up to 10.54 crore equity shares by existing promoters and shareholders. ARCIL will not receive any proceeds from the public issue, PTI reported. As part of the OFS, New York-based Avenue Capital, through its affiliate Avenue India Resurgence Pte Ltd, will offload up to 6.87 crore equity shares. State Bank of India plans to sell 1.94 crore shares, while Federal Bank Ltd will divest 10.35 lakh shares. Singapore's sovereign fund GIC, through its arm Lathe Investment Pte Ltd, will exit the company by selling up to 1.62 crore shares, equivalent to a 5 per cent stake. ARCIL, the first asset reconstruction company incorporated in India, facilitates debt resolution by acquiring stressed assets from banks and financial institutions. It implements recovery strategies through restructuring, enforcement of rights on underlying securities, and settlements to maximise recovery value. Registered with the RBI in August 2003 under the SARFAESI Act, ARCIL completed its first asset acquisition in December 2003. A ccording to a CRISIL report, ARCIL was the second most profitable ARC in FY24, with a standalone profit of Rs 305.34 crore. It also ranked second in assets under management (AUM) at Rs 15,230 crore and held the second-largest net worth among private ARCs at Rs 2,462.5 crore as of March 31, 2024. By March 31, 2025, ARCIL had acquired total principal debt worth Rs 72,657 crore at a cost of Rs 38,156 crore, or 52.51 per cent of the total, and achieved recoveries of Rs 28,460 crore. Its total borrowings stood at Rs 305.99 crore. The Mumbai-headquartered company competes with Edelweiss ARC, Phoenix ARC, JM Financial ARC, ACRE, and Omkara. IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial are the book-running lead managers for the IPO, while MUFG Intime India is the registrar. The equity shares are proposed to be listed on BSE and NSE. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Economic Times
02-08-2025
- Business
- Economic Times
ARCIL files for IPO, eyes public listing as India's oldest asset reconstruction firm
Asset Reconstruction Company (India) Limited (ARCIL), the first asset reconstruction company to be incorporated in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering. ADVERTISEMENT The IPO will be an offer for sale of up to 10.54 crore equity shares of face value Rs 10 each. The offer includes up to 6.87 crore shares by Avenue India Resurgence Pte. Ltd, up to 1.94 crore shares by State Bank of India, up to 1.62 crore shares by Lathe Investment Pte. Ltd, and up to 10.35 lakh shares by The Federal Bank, the company said in a press release dated August 2. Established in 2002, ARCIL describes itself as a pioneer in India's asset reconstruction industry and was the first ARC to be incorporated in the country. As of March 31, 2024, it was the second largest in terms of assets under management at Rs 15,230.031 crore and had the second highest net worth among private ARCs in India at Rs 2,462.511 crore. ARCIL operates across three verticals, corporate loans, SME and other loans, and retail loans, and classifies stressed assets based on internally assessed resolution mechanisms. It derives revenue from management fees, portfolio recovery fees, investment income, and company is sponsored by Avenue India Resurgence Pte. Ltd and the State Bank of India, under the SARFAESI Act. Its management team includes CEO and MD Mr. Pallav Mohapatra, President Mr. Phanindranath Kakarla, and CFO Mr. Pramod Gupta. ADVERTISEMENT According to a CRISIL report cited in the DRHP, 'the stressed assets opportunity is shifting from corporate to non-corporate loans,' with the retail segment in particular 'experiencing rising stress levels.' ARCIL has increased the proportion of retail loans in its portfolio, with retail AUM rising from Rs 1,559.107 crore as of March 2023 to Rs 2,747.88 crore as of March 2025, a compound annual growth rate of 20.79%.As of March 31, 2025, the company had acquired Rs 72,657.307 crore in total principal debt at a cost of Rs 38,155.632 crore and made recoveries of Rs 28,459.7 crore. During FY25, FY24, and FY23, the company acquired Rs 3,975.871 crore, Rs 2,068.982 crore, and Rs 4,288.962 crore of stressed assets, respectively. ADVERTISEMENT ARCIL reported revenue from operations of Rs 596.423 crore and total income of Rs 623.399 crore for the year ended March 31, 2025. Profit after tax stood at Rs 355.319 crore, with a PAT margin of 57%. ADVERTISEMENT For FY24, ARCIL had the lowest expenses as a percentage of average total AUM at 0.57% among the top seven ARCs, and the highest return on assets at 11.48%. Its capital adequacy ratio stood at 99.03%, approximately 40% higher than the next highest private ARC, while the debt-to-equity ratio was the lowest among the top six private ARCs at of March 31, 2025, the company had formed 652 trusts, of which 453 remained open and 199 had been closed. ARCIL collaborates with 201 registered valuers, 163 collection agents, and 950 empanelled lawyers, and maintains relationships with 30 private sector banks, 28 public sector banks, 2 co-operative banks, 41 non-banking financial companies, 17 housing finance companies, and seven other institutions. ADVERTISEMENT IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial are acting as the bankers to the issue. Also read | 8th Pay Commission: What Rs 3 lakh crore boost for government employees mean for stock market investors (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
02-08-2025
- Business
- Time of India
ARCIL files for IPO, eyes public listing as India's oldest asset reconstruction firm
Asset Reconstruction Company (India) Limited (ARCIL), the first asset reconstruction company to be incorporated in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering. The IPO will be an offer for sale of up to 10.54 crore equity shares of face value Rs 10 each. The offer includes up to 6.87 crore shares by Avenue India Resurgence Pte. Ltd, up to 1.94 crore shares by State Bank of India , up to 1.62 crore shares by Lathe Investment Pte. Ltd, and up to 10.35 lakh shares by The Federal Bank, the company said in a press release dated August 2. Explore courses from Top Institutes in Please select course: Select a Course Category others Product Management Artificial Intelligence Data Science Operations Management MBA Design Thinking Degree Digital Marketing Data Science MCA Data Analytics Cybersecurity healthcare Project Management PGDM Finance Healthcare Management Leadership Public Policy CXO Technology Others Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This may be of interest to you! Undo Pioneer in asset reconstruction Established in 2002, ARCIL describes itself as a pioneer in India's asset reconstruction industry and was the first ARC to be incorporated in the country. As of March 31, 2024, it was the second largest in terms of assets under management at Rs 15,230.031 crore and had the second highest net worth among private ARCs in India at Rs 2,462.511 crore. ARCIL operates across three verticals, corporate loans, SME and other loans, and retail loans, and classifies stressed assets based on internally assessed resolution mechanisms. It derives revenue from management fees, portfolio recovery fees, investment income, and write-backs. Live Events The company is sponsored by Avenue India Resurgence Pte. Ltd and the State Bank of India, under the SARFAESI Act. Its management team includes CEO and MD Mr. Pallav Mohapatra, President Mr. Phanindranath Kakarla, and CFO Mr. Pramod Gupta. Retail loan portfolio expanding amid sector shift According to a CRISIL report cited in the DRHP, 'the stressed assets opportunity is shifting from corporate to non-corporate loans,' with the retail segment in particular 'experiencing rising stress levels.' ARCIL has increased the proportion of retail loans in its portfolio, with retail AUM rising from Rs 1,559.107 crore as of March 2023 to Rs 2,747.88 crore as of March 2025, a compound annual growth rate of 20.79%. As of March 31, 2025, the company had acquired Rs 72,657.307 crore in total principal debt at a cost of Rs 38,155.632 crore and made recoveries of Rs 28,459.7 crore. During FY25, FY24, and FY23, the company acquired Rs 3,975.871 crore, Rs 2,068.982 crore, and Rs 4,288.962 crore of stressed assets, respectively. Financial performance and operations ARCIL reported revenue from operations of Rs 596.423 crore and total income of Rs 623.399 crore for the year ended March 31, 2025. Profit after tax stood at Rs 355.319 crore, with a PAT margin of 57%. For FY24, ARCIL had the lowest expenses as a percentage of average total AUM at 0.57% among the top seven ARCs, and the highest return on assets at 11.48%. Its capital adequacy ratio stood at 99.03%, approximately 40% higher than the next highest private ARC, while the debt-to-equity ratio was the lowest among the top six private ARCs at 0.06. As of March 31, 2025, the company had formed 652 trusts, of which 453 remained open and 199 had been closed. ARCIL collaborates with 201 registered valuers, 163 collection agents, and 950 empanelled lawyers, and maintains relationships with 30 private sector banks, 28 public sector banks, 2 co-operative banks, 41 non-banking financial companies, 17 housing finance companies, and seven other institutions. Bankers to the issue IIFL Capital Services , IDBI Capital Markets & Securities, and JM Financial are acting as the bankers to the issue. Also read | 8th Pay Commission: What Rs 3 lakh crore boost for government employees mean for stock market investors ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
News18
02-08-2025
- Business
- News18
Avenue Capital Group-backed ARCIL files IPO draft papers with Sebi
Last Updated: New Delhi, Aug 2 (PTI) Avenue Capital Group-backed Asset Reconstruction Company (India) Ltd (ARCIL) has filed its preliminary papers with markets regulator Sebi to mobilise funds through an initial share sale. ARCIL facilitates debt resolution and is the first asset reconstruction company to be incorporated in the country. The initial public offering (IPO) is entirely an offer for sale (OFS) of up to 10.54 crore equity shares by promoters and other shareholders, according to the draft red herring prospectus (DRHP) filed on Friday. As part of the OFS, promoters — New York-based Avenue Capital through its affiliate Avenue India Resurgence Pte Ltd is offloading up to 6.87 crore equity shares, and State Bank of India will be selling 1.94 crore shares. Federal Bank Ltd will also sell 10.35 lakh shares in the company. Meanwhile, Singapore-based GIC through its arm Lathe Investment Pte Ltd is exiting the firm by selling up to 1.62 crore equity shares or 5 per cent stake in ARCIL. Since the public issue is entirely an OFS, ARCIL will not receive any proceeds from the IPO. ARCIL is engaged in the business of acquiring stressed assets from banks and financial institutions and implementing resolution strategies through restructuring, enforcement of rights on underlying securities and settlement aimed at maximising recovery and optimising the value of such stressed assets in order to generate revenue streams. It is the first ARC to be incorporated in India, having received RBI registration in August 2003 under the SARFAESI Act, 2002, as per a CRISIL report. It completed its first stressed asset acquisition in December 2003. Mumbai-based ARCIL was the second most profitable ARC in India in FY24 with a standalone profit of Rs 305.34 crore, and the second largest by assets under management (AUM) at Rs 15,230 crore. It had the second largest net worth among private ARCs in India at Rs 2,462.5 crore on a standalone basis as on March 31, 2024, according to the report. As of March 31, 2025, it had acquired total principal debt of Rs 72,657 crore at a cost of Rs 38,156 crore or 52.51 per cent of the total principal debt and made recoveries of Rs 28,460 crore and the company's total borrowings stood at Rs 305.99 crore. ARCIL competes with the likes of Edelweiss ARC, Phoenix, JM Financial ARC, ACRE and Omkara. IIFL Capital Services, IDBI Capital Markets & Securities and JM Financial are the book-running lead managers while MUFG Intime India is the registrar for the IPO. The shares of the company are proposed to be listed on the BSE and NSE. PTI HG ANU view comments First Published: August 02, 2025, 14:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
The Wire
23-07-2025
- Business
- The Wire
PSBs Wrote Off More than Rs 12-Lakh Crore in Loans in Last Decade
Government data showed that write-offs in the last five fiscal years alone (FY21 to FY25) exceeded Rs 5.82 lakh crore. New Delhi: Public sector banks (PSBs) in India have written off loans amounting to more than Rs 12 lakh crore between the financial years 2015-16 and 2024-25, the finance ministry informed the Rajya Sabha on July 22. In a written reply, Minister of State for Finance Pankaj Chaudhary presented data revealing that PSBs wrote off an aggregate loan amount of Rs 12,08,828 crore. The data showed that write-offs in the last five fiscal years alone (FY21 to FY25) exceeded Rs 5.82 lakh crore. The ministry clarified that a "write-off" is a technical accounting procedure and does not constitute a waiver of the borrower's debt. "Such write-off does not result in a waiver of liabilities for borrowers and, therefore, it does not benefit the borrower," Chaudhary stated. "The borrowers continue to be liable for repayment, and banks continue to pursue recovery actions initiated in these accounts." This practice aligns with Reserve Bank of India (RBI) guidelines, where non-performing assets (NPAs) for which full provisioning has been made are typically written off the balance sheet after four years. The minister's reply also shed light on wilful defaulters. As of March 31, 2025, a total of 1,629 unique borrowers with an aggregate outstanding loan of over Rs 1.62 lakh crore were classified as wilful defaulters. In response, banks are pursuing recovery through mechanisms like the SARFAESI Act and the Insolvency and Bankruptcy Code (IBC). Additionally, enforcement actions have led to the confiscation of assets worth over Rs 15,000 crore under the Prevention of Money Laundering Act (PMLA) to date. While data indicated a decline in write-offs for 10 of the 12 PSBs over the last five years, State Bank of India and Canara Bank experienced an increase, particularly during FY25. In response to a separate question on employment, the Ministry noted that PSBs had recruited nearly 1.5 lakh employees over the last five years, with recruitment for another 48,570 positions currently underway. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
