New Delhi: Asset Reconstruction Company (India) Ltd, popularly known as Arcil, is preparing to enter the stock market with an initial public offering worth up to Rs 733 crore.
The Arcil IPO will open for public subscription on September 9 and close on September 11. The asset reconstruction company has fixed the price band at Rs 132-139 per equity share.
Bidding for anchor investors will take place on September 8, a day before the public issue opens.
Arcil IPO Entirely an OFS
Unlike several recent public offerings, Arcil’s IPO does not include a fresh issue of shares. The offer consists entirely of an Offer for Sale (OFS) of 5.27 crore equity 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 Arcil IPO is entirely an OFS, the company will not receive any proceeds. Funds raised will go to the selling shareholders.
At Rs 139 per share, the IPO is estimated at around Rs 733 crore. At the lower price of Rs 132, the issue would be worth about Rs 696 crore.
Listing Set for September 17
Arcil acquires stressed assets from banks and financial institutions and works on their resolution 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. IIFL Capital Services, IDBI Capital Markets & Securities and JM Financial are managing the issue.
