The record
Written from the 1 report below. Nothing here is unsourced.
- Asset Reconstruction Company (India), or Arcil, is preparing a ₹733-crore initial public offering that opens on September 9 and closes on September 11, with a price band of ₹132-139 a share.
- The issue is entirely an offer for sale, so Arcil will not receive any proceeds, with sellers including Avenue India Resurgence, State Bank of India, Lathe Investment and Federal Bank.
- The company, set to become India's first listed asset reconstruction company, is also building fee-based businesses such as Collection-as-a-Service, which it says is getting encouraging responses from banks and NBFCs, and is cautiously exploring microfinance.
- Arcil manages ₹20,150 crore in assets and notes the ARC industry handles only about 10-12 per cent of stressed assets in the Indian financial system, which it sees as room for growth.
What to watch next
- Investor response during the September 9-11 subscription window and eventual listing outcome.
- How much traction and revenue the early-stage Collection-as-a-Service business generates.
- Whether Arcil expands its microfinance exposure or continues its cautious approach.
Who said what3
Only words found exactly in the article are shown, attributed and linked to the line they came from.
Pramod Kumar Gupta
3 quotes · 1 outlet
“It’s at the very beginning stage. We started about six months back, and we are getting a very encouraging response from the BFSI sector”
In the article
…(IPO) next week, with the price band fixed at ₹132-139 a share. The issue, entirely an offer for sale (OFS) of up to 5.27 crore equity shares, will open for subscription on September 9 and close on September 11. “ It’s at the very beginning stage. We started about six months back, and we are getting a very encouraging response from the BFSI sector ,” Pramod Kumar Gupta, chief financial officer of Arcil told businessline in an interview. Gupta said the company is receiving an encouraging response from the BFSI sector, although it is too early to assess the…
“The flavor of the stress cycle keeps changing. Five years back, it was corporate. Now it is retail and SME. So, we have created very strong franchises across all these three sectors”
In the article
…microfinance institution (MFI) segment as another potential growth avenue. Gupta said the company has invested in some MFI assets but is taking time to build expertise before expanding significantly in the segment. “ The flavor of the stress cycle keeps changing. Five years back, it was corporate. Now it is retail and SME. So, we have created very strong franchises across all these three sectors ,” he said. Arcil’s retail and SME business has grown nearly four times over the past five years, and accounts for almost 32 per cent of the business. The company currently manages a retail book of about ₹4,500 crore,…
Coverage1
All filed from India
Named India · Asset Reconstruction Company (India) · Avenue India Resurgence · Federal Bank · Lathe Investment · Pramod Kumar Gupta · State Bank of India
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