ARCIL set to go public as Sebi clears IPO plan of India's oldest ARC

SBI and Avenue Capital-backed ARCIL to offer 105 million shares in an IPO through an offer for sale; IIFL, IDBI Capital, and JM Financial to manage the issue

US-based Avenue Capital Group and State Bank of India (SBI)-promoted Asset Reconstruction Company (India) Ltd (ARCIL) has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). Once listed, ARCIL will become the first asset reconstruction company (ARC) in the country to be publicly traded.

 

Avenue Capital, through its unit Avenue India Resurgence Pte Ltd, holds 69.73 per cent in ARCIL, while SBI owns 19.95 per cent. Other investors include Lathe Investment Pte Ltd, Federal Bank, Karnataka Bank, and South Indian Bank.

 

Offer for sale by promoters and investors 

The proposed IPO is structured as an offer for sale (OFS), under which 105.46 million shares will be sold by the promoters and other investors.

 

Of this, Avenue Capital will offload 68.73 million shares, SBI will sell 19.44 million shares, Lathe Investment Pte Ltd will sell 16.24 million shares, and Federal Bank will sell 1.03 million shares.

 

IIFL, IDBI Capital, and JM Financial appointed as bookrunners 

IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial have been appointed as the book-running lead managers for the issue.