Shares of Asset Reconstruction Company (India) Ltd. listed flat at Rs 139 on BSE and NSE on Thursday, following the company’s Rs 732.97-crore initial public offering (IPO).
Asset Reconstruction IPO details
The Asset Reconstruction IPO was a book-built issue worth Rs 732.97 crore and comprised entirely an offer for sale (OFS). The issue consisted of 5.27 crore equity shares aggregating to Rs 732.97 crore, with no fresh issue component.
The IPO opened for subscription on September 9 and closed on September 11. The company had fixed the price band at Rs 132-139 per share, with a lot size of 107 shares.
The issue received a strong response from investors and was subscribed 20.10 times overall by the end of the final day of bidding, according to NSE data.
The Retail Individual Investors (RII) category was subscribed 3.39 times, while the Non-Institutional Investors (NII) portion saw subscription of 15.69 times. The Qualified Institutional Buyers (QIB) category received bids for 52.65 times the shares on offer.
The basis of allotment was finalised on September 15, with the company fixing the IPO issue price at Rs 139 per share, the upper end of the price band.
Since the issue comprised entirely an offer for sale of existing equity shares, Asset Reconstruction Company (India) Ltd. will not receive any proceeds from the IPO. The proceeds from the offer will accrue to the selling shareholders.
IIFL Capital Services Ltd, IDBI Capital Markets & Securities Ltd and JM Financial Ltd acted as the book-running lead managers to the issue, while MUFG Intime India Pvt. Ltd. served as the registrar to the issue.
About Asset Reconstruction Company (India)
Asset Reconstruction Company (India) Ltd. (ARCIL) is an asset reconstruction company operating across India. The company is engaged in acquiring stressed assets from banks and financial institutions and implementing resolution strategies aimed at maximising recovery and optimising the value of such stressed assets. The company’s resolution strategies include restructuring, enforcement of rights over underlying securities and settlements. Through these activities, ARCIL seeks to maximise recoveries from stressed assets and generate revenue streams while optimising the value of the assets acquired from banks and financial institutions.
This article has been written by Kumar Gaurav, who is not a SEBI-registered Research Analyst or an Investment Adviser. Gaurav and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.
