Arcil to focus on retail, SME assets; seeks better pricing

Asset reconstruction company Arcil today said it is going to focus more on buying retail assets but will be very selective in buying large corporate assets.
"Banks typically come up with auctions with a mixed bag of assets in it and ask and expect ARCs to buy those. We would prefer to have abilities to buy assets, either on industry preferences or on the basis of size or a little niche," its newly-appointed chief executive and managing director Vinayak Bahuguna told reporters here today.
"We see a lot of opportunities in retail assets. Experience has shown that there is a higher rate of churn in these portfolios so capital can be churned faster. Therefore, it suits us to look at this particular asset base and try to grow that book," he added.

Besides retail assets, the company will also be looking at opportunities in the SME segment.
Bahuguna said Arcil would, however, be very selective towards buying large corporate assets.
"The issue is the amount of capital I have. I want the low hanging fruits first. If I have only a limited capital then why should I take the most difficult case first."

Arcil's asset under management is at Rs 11,000 crore, of which retail book is around Rs 800 crore and the balance is corporates and SMEs.
Bahuguna said Arcil may look at raising USD 500 million in the current fiscal.

"We are looking to raise capital through variety of ways if alternate investment fund regulations are eased. We may also directly meet investors and try to convince them to invest in Arcil."
When asked about the listing plan, he said the option is on the drawing board but not on the radar yet.