Arcil IPO subscribed 38% on Day 1; GMP signals 20% listing premium

Fresh updates from the financial markets indicate that The initial public offering (IPO) of Asset Reconstruction Firm India (Arcil), backed by Avenue Capital Group and State Bank of India, opened today, with the offering receiving 38 percent subscription as of 5:00 pm on September 9, as per the NSE data.

The Rs 733-crore public offering received bids for 1,40,04,374 equity shares against 3,69,12,363 shares available for subscription. Retail market participants emerged as the strongest participants, with their portion subscribed 56 percent, while the non-institutional investor category was subscribed 33 percent.

In the grey market, Arcil shares were trading at a premium of 20.5 percent on September 9, according to InvestorGain. The grey market premium (GMP) is an unofficial indicator of market sentiment and should not be treated as a guaranteed stock-exchange debut gain or return.

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At the upper end of the IPO price range of Rs 139 per share, a 20.5 percent GMP implies an indicative grey-market price of around Rs 167.50 per share. That stated, the actual stock-exchange debut price can differ significantly from grey-market indications.

The IPO comes with a price range of Rs 132-139 per share and will stay open for subscription until September 11. The offering is entirely an offer-for-sale (OFS), meaning Arcil itself will not receive any funds boosted through the IPO.

Ahead of the public offering, the firm boosted Rs 219.89 crore through its anchor book. It allotted 1.58 crore equity shares to 21 institutional market participants.

Several prominent global market participants participated in the anchor allocation, including Goldman Sachs, Ashoka WhiteOak ICAV, Societe Generale, BofA Securities Europe and Integrated Core Strategies.

Domestic mutual funds additionally accounted for a significant portion of the anchor placement. Arcil allotted 81.29 lakh shares to 12 schemes managed by six fund houses — White Oak Capital, Aditya Birla Sun Life AMC, Bandhan Mutual Fund, Tata Mutual Fund, JM Financial Mutual Fund and Groww Mutual Fund.

Since the offering is an OFS, the IPO proceeds, after deducting offering-related expenses, will accrue to the selling shareholders. These include Avenue India Resurgence, State Bank of India, Lathe Investment, owned by Singapore's sovereign wealth fund GIC, and Federal Bank.

Arcil noted topline of Rs 753 crore for the financial year ended March 2026, marking a 26.3 percent gain from Rs 596.4 crore in the previous year.

Earnings for the year rose 14.8 percent to Rs 407.8 crore in FY26, compared with Rs 355.3 crore in FY25.

IIFL Capital Services, IDBI Capital Markets & Securities and JM Financial are the merchant bankers handling the IPO.

Established in August 2003, Arcil was the first asset reconstruction firm incorporated in India. It acquires stressed assets from banks and financial institutions and works on their resolution through measures such as restructuring, enforcement of security rights and settlements. The firm aims to maximise recoveries from stressed assets while improving the value of the underlying assets.