Arcil IPO Launches September 9, ₹733-Crore Offer

Asset Reconstruction Company (India) Ltd, also known as Arcil, is set to launch its initial public offering (IPO) on September 9. The IPO will be open for public subscription until September 11.

The price band for the IPO has been fixed at ₹132-139 per equity share. A day before the public issue opens, bidding for anchor investors will take place on September 8.

The Arcil IPO is entirely an Offer for Sale (OFS) of 5.27 crore equity shares, with no fresh issue of shares. Promoters Avenue India Resurgence Pte Ltd and State Bank of India, along with existing shareholders Lathe Investment Pte Ltd and The Federal Bank Ltd, will sell shares through the issue.

As the IPO is entirely an OFS, Arcil will not receive any proceeds from the issue. The funds raised will go to the selling shareholders. At the higher end of the price band, ₹139 per share, the IPO is estimated to be worth around ₹733 crore. At the lower end of the price band, ₹132 per share, the issue would be worth about ₹696 crore.

Arcil is an asset reconstruction company that acquires stressed assets from banks and financial institutions. The company works on resolving these assets through restructuring, settlements, and enforcement of rights over underlying securities.

The company expects the listing to strengthen its visibility and provide liquidity to shareholders. Arcil shares are scheduled to list on the BSE and NSE on September 17. The issue is being managed by IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial.

The IPO launch is a significant development for Arcil, which is looking to strengthen its position in the asset reconstruction industry. With the listing, the company aims to increase its visibility and provide liquidity to its shareholders.

The asset reconstruction industry has been growing in recent years, with several companies looking to capitalize on the opportunity to resolve stressed assets. Arcil's IPO launch is a testament to the growing demand for asset reconstruction services in India.

In conclusion, the Arcil IPO launch on September 9 is a significant event for the company and the asset reconstruction industry as a whole. With a price band of ₹132-139 per equity share, the IPO is expected to raise around ₹733 crore, providing liquidity to the selling shareholders and strengthening the company's visibility.