Arcil plans $600 mn fund

Asset Reconstruction Company of India has decided to float a $600 million (around Rs 2,900 crore) stressed asset fund by the end of March to “bring back confidence” of investors, S Khasnobis, managing director and CEO, said.

“Arcil will pump in 20 per cent of the amount and the rest will be raised from five to six foreign investors and seven- eight Indian investors,” Khasnobis said. Arcil has Rs 10,000 crore assets under management.

“Arcil could have gone with a 5 per cent contribution to the fund, but we decided to take a 20 per cent stake just to create confidence in the mind of prospective investors,” he said.

State Bank of India, IDBI Bank and ICICI Bank are Arcil’s three top shareholders along with Lathe Investment, First Rand Bank and Barclays Bank.