Trilegal Advises ARCIL on Landmark Rs 733 Crore IPO as India Debuts First Listed Asset Reconstruction Company

Leading Indian law firm Trilegal advised Asset Reconstruction Company (India) Limited (ARCIL) on its initial public offering (IPO) aggregating to Rs 732.97 crore (INR 7,329 million). The transaction marks a structural milestone for the domestic financial sector, establishing ARCIL as India's first publicly listed asset reconstruction company (ARC) and the world's first publicly traded pure-play private-sector ARC.

Trilegal acted as counsel to ARCIL on the transaction and also advised State Bank of India (SBI) in connection with its participation as a selling shareholder. The capital markets team for ARCIL was led by Partners Bhakta Patnaik and Albin Thomas, supported by Senior Associate Somya Jena alongside Associates Akanksha Goel, Tushar Chitlangia, and Adhish Mohanty. Partner Albin Thomas also headed the team advising State Bank of India, supported by Senior Associate Arsh Sinha and Associate Adhish Mohanty.

Issue Structure and Selling Shareholders

The public issue was structured entirely as an Offer for Sale (OFS) of 5,27,31,946 equity shares, priced in a band of Rs 132 to Rs 139 per share. Because the offering consisted exclusively of secondary share sales, ARCIL received no proceeds from the capital raised, with the entire sum accruing to the selling stakeholders:

• Avenue India Resurgence Pte Ltd
• State Bank of India
• Lathe Investment Pte Ltd
• The Federal Bank Ltd

Ahead of the issue opening for public bidding from September 9 to September 11, ARCIL mobilized Rs 220 crore from anchor investors at the upper end of Rs 139 per share. Domestic mutual funds secured over 51% of the anchor book across 12 schemes, with participation from marquee institutional investors including Goldman Sachs, BofA Securities Europe, Societe Generale, Tata Mutual Fund, Bandhan Mutual Fund, and Aditya Birla Sun Life Mutual Fund. The book-running lead managers to the offering included IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial.

Business Model and Financial Footprint

Incorporated in 2002 and registered with the Reserve Bank of India (RBI) in 2003, ARCIL is India's pioneer in distressed asset resolution. As of FY25, it ranked as India's second-largest ARC by assets under management (AUM), managing Rs 16,852.6 crore. The firm operates across corporate loans, retail portfolios, and SME debt, recovering value through debt restructuring, settlements, enforcement under the SARFAESI Act, and proceedings under the Insolvency and Bankruptcy Code (IBC).

For the financial year ended March 31, 2026, the company posted a 24% rise in revenue to Rs 721.7 crore, up from Rs 581.8 crore in the preceding fiscal year. ARCIL's net profit rose 6.7% to Rs 351.7 crore compared to Rs 329.5 crore a year earlier.

Market Implications for Dalal Street

ARCIL debuted on the BSE and National Stock Exchange (NSE) on September 17 at its upper band issue price of Rs 139 per share, implying an equity valuation of approximately Rs 4,516 crore.

For domestic investors, ARCIL introduces a novel asset class to Indian secondary markets. While listed Indian commercial banks and non-banking financial companies (NBFCs) have traditionally held equity stakes in ARCs to manage non-performing assets (NPAs) off-balance-sheet, retail and institutional public investors can now directly invest in the resolution cycle of India's stressed credit ecosystem.

Tags: ARCIL State Bank of India Trilegal SEBI BSE NSE