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Listed
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: 1200 shares (₹166,800)
GMP (Grey Market)
—
No GMP data yet
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× sector midpoint P/E with exceptional 51.9% net margins and 16.9% revenue CAGR, supported by tier-1 promoters (SBI) and 20.1× subscription. The primary risk is 100% OFS structure, meaning zero capital flows to the company, and modest 15.6% PAT growth may not sustain current valuations if AUM or recoveries slow.
Listing Performance
Issue Price
₹139
Allotment price
Listing Price
₹139
+0% on listing day
Current Price (CMP)
₹126.1
-9.3% vs issue
Listed On
17 Sep 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Valuation deeply discounted to peers
At 11.1× P/E against a 24× sector midpoint, the company is priced at less than half the typical NBFC multiple. This 0.46× ratio sits well within the Subscribe threshold of ≤1.0× and reflects material margin of safety for retail investors entering at the upper price band.
✓ Strength
Exceptional profitability and capital efficiency
Net profit margin of 51.9% and EBITDA margin of 82.47% are extraordinary for an NBFC, indicating highly efficient asset recovery operations. Debt-to-equity of 0.11× is fortress-like, providing substantial buffer for growth or stress without leverage risk.
✓ Strength
Strong promoter backing and subscription demand
State Bank of India co-promotion and 88.47% pre-issue promoter holding signal long-term commitment. The 20.1× subscription overrun and reputed lead managers (IIFL, IDBI, JM Financial) validate market confidence in the business model.
⚠ Risk
100% OFS dilutes capital raise benefit
The entire ₹733 Cr issue is offered for sale by promoters, not fresh capital infusion. This means the company receives zero funds for growth, technology, or AUM expansion, limiting near-term operational upside despite strong valuation.
⚠ Risk
Modest earnings growth may not sustain multiple
PAT CAGR of 15.6% over two years lags the 20%+ threshold typically expected at these valuations. If recovery rates or AUM growth decelerate, the market may re-rate the stock downward despite current margin strength.
⚠ Risk
Regulatory and credit cycle sensitivity
As an ARC (asset reconstruction company), earnings are tied to NPA resolution timelines and RBI policy on stressed asset sales. Tightening credit cycles or regulatory changes to ARC operations could compress recovery volumes and margins.
₹ Valuation
P/E and margin justify Subscribe conviction
At 11.1× P/E versus 24× sector midpoint (0.46× ratio) and 51.9% NPM well above the 15% threshold, the company qualifies for Subscribe under both valuation and profitability criteria. The P/S of 6× is also reasonable for a high-margin financial services business.
👁 Watch
Monitor AUM and recovery realization rates
Post-listing, track quarterly AUM growth, recovery rates on stressed assets, and management guidance on pipeline. Any slowdown in recoveries or AUM addition would be the earliest signal of margin compression and justify profit-taking.
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× sector midpoint P/E with exceptional 51.9% net margins and 16.9% revenue CAGR, supported by tier-1 promoters (SBI) and 20.1× subscription. The primary risk is 100% OFS structure, meaning zero capital flows to the company, and modest 15.6% PAT growth may not sustain current valuations if AUM or recoveries slow.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
The minimum lot size is 1200 shares. At the upper band price of ₹139, the minimum investment per retail application is ₹166,800. You can apply for up to 13 lots (₹2,168,400) 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.
The IPO listed on 17 Sep 2026 at ₹139 against an issue price of ₹139 (+0% on listing day). The current market price (CMP) is approximately ₹126.1 (+-9.3% vs issue).
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The minimum investment is ₹166,800 for one lot (1200 shares). The company trades at 0.46× sector midpoint P/E with exceptional 51.9% net margins and 16.9% revenue CAGR, supported by tier-1 promoters (SBI) and 20.1× subscription. The primary risk is 100% OFS structure, meaning zero capital flows to the company, and modest 15.6% PAT growth may not sustain current valuations if AUM or recoveries slow.
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 1200 shares at ₹139 each, costing ₹166,800 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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