Public lender State Bank of India and private lender Federal Bank are sitting on massive gains of 281% and 292%, respectively, on their investments in Asset Reconstruction Company (India) Ltd, or Arcil, as the company prepares to launch its Rs 733-crore Offer for Sale IPO.
Federal Bank had acquired 7,00,116 shares in Arcil at an average price of Rs 35.43 per share, taking its total acquisition cost to Rs 2.48 crore. With the lender now set to sell its stake at the upper end of the IPO price band at Rs 139 per share, the holding is valued at Rs 9.74 crore, translating into a gain of 292%.
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