Asset Reconstruction
What they do: The company appears to be heavily reliant on debt financing, with a focus on generating revenue through operations that have not translated into increased profitability.
By IPO Milega Research · Published · Updated
Analysis score 6 +1.5 for 52.65x QIB subscription
The company exhibits a weak financial position with high liabilities and low assets.
- Listing gain
- +0%
- Listed at ₹139
- Subscribed
- 20.1x
- Total
- Retail odds
- 29%
- 1 in 3.4
GMP is an unofficial grey market indication.
- Price band
- ₹132-139
- Lot size
- 107 shares
- Min. investment
- ₹14,873
- Issue size
- 732.97 Cr.
- Open9 Sept 2026
- Close11 Sept 2026
- Allotment15 Sept 2026
- Listing17 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 52.65x
- NII
- 15.69x
- Retail
- 3.39x
₹151 (+8.63%)
GMP trend
Unofficial grey market quotes, times in IST
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials3.0
- Performance8.0
- Flexibility8.0
- Timing7.0
- Risk4.0
The Grey Market Premium (GMP) of 166, representing a 19.42% premium over the issue price, indicates strong investor interest and potential for listing gains. This is supported by the company's strong market position as the second largest ARC in India, its robust financial stability, and strategic market timing.
Strengths3
- Second largest ARC by AUM in India
- Maintains lowest debt-to-equity ratio among private ARCs
- High capital adequacy ratio of 88.41%
Concerns5
- High reliance on AUM for revenue and profits.
- Potential RBI penalties for regulatory non-compliance.
- Challenges in acquiring and recovering stressed assets.
- High attrition rates among key personnel.
- Ongoing criminal and tax litigation involving SBI.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,8731 lots, 107 shares
- Retail Maximum1,93,34913 lots, 1,391 shares
- S-HNI Minimum2,08,22214 lots, 1,498 shares
- S-HNI Maximum9,96,49167 lots, 7,169 shares
- B-HNI Minimum10,11,36468 lots, 7,276 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 107 | 14,873 |
| Retail Maximum | 13 | 1,391 | 1,93,349 |
| S-HNI Minimum | 14 | 1,498 | 2,08,222 |
| S-HNI Maximum | 67 | 7,169 | 9,96,491 |
| B-HNI Minimum | 68 | 7,276 | 10,11,364 |
Timing
7.0/10The market timing for Asset Reconstruction's IPO is favorable. The company's diverse financial activities and strategic investments across numerous subsidiaries suggest a strong market position. This, combined with a substantial IPO size of 732.97 Cr., indicates confidence in capitalizing on current market conditions. The involvement of multiple book-running lead managers and a comprehensive marketing strategy further supports the positive timing assessment.
- Time to market
- Asset Reconstruction's extensive subsidiary network and diverse revenue streams position it well for market entry. The strategic timing aligns with favorable market conditions, enhancing the potential for a successful IPO.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Favourable
- Time to market
- 8.0
- Listing on
- BSE, NSE
Key milestones
- 9 Sept 2026IPO Opens
- 11 Sept 2026IPO Closes
- 15 Sept 2026Basis of Allotment
- 16 Sept 2026Refunds Initiated
- 16 Sept 2026Credit to Demat Account
- 17 Sept 2026Listing Date
Financials
3.0/10- Revenue
- ₹750 Cr
- +23.4%
- Profit after tax
- ₹323 Cr
- +4.3%
- Net margin
- 43.0%
- -7.8 pts
- Assets
- ₹5,726 Cr
- +30.3%
- Return on equity
- 13.95%
- Debt to equity
- 0.96
- Revenue CAGR
- 200%
- ROCE
- [.]%
- Return on net worth
- 12.52%
- NAV per share (₹)
- 90.96
Financial performance trend
Amount ₹ in croresThe company exhibits a weak financial position with high liabilities and low assets. Despite a significant increase in revenue, the net profit remains stagnant, indicating inefficiencies. The debt-to-equity ratio is extremely high, suggesting financial instability.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks1
- Operational risks1
- Regulatory risks2
High reliance on AUM and litigation risks pose significant challenges to financial stability and operational effectiveness.
How the company offsets these
Strong capital adequacy and credit ratings provide some financial stability.
Financial risks3
- High reliance on AUM for revenue and profits.
- Interest rate and market risks affecting financial instruments.
- Material tax litigation related to service tax demands.
Market risks1
- Challenges in acquiring and recovering stressed assets.
Operational risks1
- High attrition rates among key personnel.
Regulatory risks2
- Potential RBI penalties for regulatory non-compliance.
- Ongoing criminal and tax litigation involving SBI.
Performance
8.0/10ARCIL, India's first asset reconstruction company, demonstrates strong financial health and operational execution. It is the second largest ARC by AUM and maintains a low debt-to-equity ratio and high capital adequacy ratio. The company faces regulatory challenges but has shown consistent growth and strategic management.
- Historical growth
- consistent, moderate
- Market comparison
- ARCIL is the second largest ARC in India by AUM, indicating a strong market position compared to peers.
- Future potential
- Positive, with expected continued growth in AUM and profitability.
- Operational consistency
- ARCIL has maintained stable revenue growth and profitability over its operational history, supported by strategic asset acquisitions and effective management.
- Experience
- The management team has extensive experience in asset reconstruction and financial services.
- Track record
- The management has successfully navigated regulatory challenges and maintained strong financial health.
Key achievements
- 01Second largest ARC by AUM in India
- 02Maintains lowest debt-to-equity ratio among private ARCs
- 03High capital adequacy ratio of 88.41%
Flexibility
8.0/10The company has a strong market position as the second largest ARC in India by AUM, with a diversified portfolio across corporate, SME, and retail loans. Its ability to adapt to regulatory changes and leverage its first-mover advantage in the asset reconstruction industry enhances its market adaptability.
The company maintains a low debt-to-equity ratio and high capital adequacy ratio, indicating strong financial stability. It has consistently met regulatory capital requirements ahead of deadlines and has a robust support system from its sponsors, ensuring a prudent capital structure.
The company exhibits operational agility through its diversified acquisition strategies and robust collections framework. Its use of technology and data analytics for asset management and recovery processes further enhances its operational efficiency.
The company demonstrates strong financial stability, operational agility, and market adaptability, supported by a robust capital structure, diversified product offerings, and a history of strategic pivots. Its low debt-to-equity ratio and high capital adequacy ratio indicate financial prudence, while its diversified asset acquisition strategies and technological investments enhance operational flexibility.
- Product diversification
- The company operates across three business verticals: Corporate loans, SME and Other loans, and Retail loans, providing a diversified income stream and reducing dependency on any single asset class.
- Future adaptability
- The company's strong financial position, diversified portfolio, and strategic use of technology position it well for future adaptability. Its ability to act as a resolution applicant under the IBC provides additional growth avenues, and its focus on retail loans aligns with market trends.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.