Arcil's Stock Market Debut
Asset Reconstruction Company (India), popularly known as Arcil, made a flat debut on the stock exchanges on September 17, with its shares listing at Rs 139 per share, the upper end of the IPO price band.
Key Details about the IPO and Listing
The company's shares opened at Rs 139 on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). At this price, Arcil's market capitalization stood at around Rs 4,516 crore. The IPO price band was fixed at Rs 132‑139 per share, with a lot size of 107 shares.
The Rs 732.97‑crore IPO received strong demand during the three‑day bidding period from September 9 to September 11. The issue was subscribed 20.10 times, with investors bidding for around 74.20 crore shares against 3.69 crore shares on offer. The institutional portion saw particularly strong demand, with the qualified institutional buyers (QIBs) category subscribed 52.65 times and the non‑institutional investor (NII) portion subscribed 15.69 times. The retail portion was subscribed 3.39 times.
Expert Analysis
Market experts have offered mixed advice to investors. Mahesh M. Ojha, Vice President – Research & Business Development at Kantilal Chhaganlal Securities Pvt. Ltd., suggested that investors who received an IPO allotment may consider booking partial gains after the listing while holding the remaining shares for the long term. Narendra Solanki, Head – Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, recommended that investors who have been allotted shares may hold for the long term.
Context and Implications
Arcil operates in the asset reconstruction industry, acquiring stressed financial assets from banks and other financial institutions and working towards their resolution and recovery. The IPO involved the sale of up to 5.27 crore existing equity shares, with the selling shareholders including Avenue India Resurgence, State Bank of India, Lathe Investment, and Federal Bank. Since there was no fresh issue of shares, Arcil itself will not receive the IPO proceeds.