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Non Banking Financial Company (NBFC)
Asset Reconstruction Co. (India) Limited IPO
₹733 Cr · Offer for Sale (OFS) · Non Banking Financial Company (NBFC)
Price Band
₹132 – ₹139
Lot: 107 shares (₹14,873)
GMP (Grey Market)
₹14 (+10.07%)
Est. listing ₹153
Issue Size
₹733 Cr
Offer for Sale (OFS)
Market Cap
₹4516.07 Cr
At upper band
P/E Ratio
11.1x
P/S: 6x
Listing Date
17 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
09 Sep 2026
✓
Closes
11 Sep 2026
📋
Allotment
14 Sep 2026
₹
Refund
15 Sep 2026
📈
Listing
17 Sep 2026
IPO India Hub: Subscribe
Conviction
8/10
The company trades at 0.46× the NBFC sector midpoint with a 51.9% net profit margin and 16.9% revenue CAGR, signalling deep undervaluation and operational strength. Key risk: 100% of the IPO is OFS (secondary sale), meaning zero capital flows to the company for growth or balance-sheet strengthening.
Our Analysis — Key Points
✓ Strength
Valuation deeply below sector norms
At 11.1× P/E against a 24× NBFC midpoint, the company is priced at 0.46× sector midpoint—well within Subscribe territory. This discount persists despite a 51.9% NPM, the highest profitability marker in the data set, indicating the market has not yet priced in earnings quality.
✓ Strength
Consistent profitability and growth trajectory
Net profit grew from ₹305.3 Cr (FY-2) to ₹407.8 Cr (FY0) at a 15.6% CAGR, while revenue expanded 16.9% over two years. EBITDA margin of 82.47% and D/E of 0.11× reflect a fortress balance sheet with minimal leverage and strong cash generation.
✓ Strength
Strong promoter commitment and GMP signal
Promoter holding remains 78.67% post-issue (down from 89.68%), demonstrating continued skin-in-the-game. Grey market premium of ₹27 (19.42% above upper band) is bullish for a Mainboard listing and suggests retail and institutional confidence in valuation.
⚠ Risk
100% OFS dilutes capital deployment benefit
The entire ₹733 Cr issue is OFS (secondary sale by promoters), meaning zero fresh capital enters the company's balance sheet. This limits the company's ability to fund organic growth, acquisitions, or strategic initiatives post-listing, reducing the typical IPO benefit to shareholders.
⚠ Risk
NBFC sector regulatory and credit cycle exposure
As an ARC (asset reconstruction company), the business is cyclical and sensitive to NPA trends, RBI policy, and credit market conditions. A sharp decline in stressed asset volumes or tighter regulatory oversight could compress margins and growth rates materially.
₹ Valuation
P/E and P/S both signal undervaluation
At 11.1× P/E and 6.0× P/S, the company sits comfortably below NBFC benchmarks (18–30× P/E) and reflects a 0.46× sector midpoint multiple. The 51.9% NPM justifies a premium multiple; current pricing leaves room for re-rating on sustained earnings growth.
👁 Watch
Monitor ARC asset recovery and NPA inflows
Post-listing, track quarterly stressed asset volumes, recovery rates, and provisions. Any sustained decline in fresh NPA inflows or deterioration in recovery efficiency would signal headwinds to revenue and margin sustainability.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Asset Reconstruction Co. (India) Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹753.04 Cr
Net Profit
₹407.84 Cr
Industry
Non Banking Financial Company (NBFC)
Issue Type
Offer for Sale (OFS)
Promoters
AVENUE INDIA RESURGENCE PTE. LTD. AND STATE BANK OF INDIA
Lead Managers
IIFL Capital Services, IDBI Capital Markets and JM Financial
Quick Actions
Frequently Asked Questions
Subscribe. The company trades at 0.46× the NBFC sector midpoint with a 51.9% net profit margin and 16.9% revenue CAGR, signalling deep undervaluation and operational strength. Key risk: 100% of the IPO is OFS (secondary sale), meaning zero capital flows to the company for growth or balance-sheet strengthening.
The current grey market premium (GMP) is ₹14, which is 10.07% above the upper band price of ₹139. This implies an estimated listing price of around ₹153. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 107 shares. At the upper band price of ₹139, the minimum investment per retail application is ₹14,873. You can apply for up to 13 lots (₹193,349) under the retail category (up to ₹2 lakh).
The IPO opens on 09 Sep 2026. It closes on 11 Sep 2026. Allotment is expected on 14 Sep 2026. Refunds initiate on 15 Sep 2026. Listing on BSE and NSE is on 17 Sep 2026.
The lead managers for the IPO are IIFL Capital Services, IDBI Capital Markets and JM Financial. Check the SEBI filing for the registrar details.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The minimum investment is ₹14,873 for one lot (107 shares). The company trades at 0.46× the NBFC sector midpoint with a 51.9% net profit margin and 16.9% revenue CAGR, signalling deep undervaluation and operational strength. Key risk: 100% of the IPO is OFS (secondary sale), meaning zero capital flows to the company for growth or balance-sheet strengthening.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The IPO is priced at a P/E of 11.1x. Market cap at issue price is ₹4516.07 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 107 shares at ₹139 each, costing ₹14,873 per application. The issue closes on 11 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Asset Reconstruction Co. (India) Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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