ARCIL IPO: An Analysis for Business Leaders
Asset Reconstruction Company Ltd (ARCIL), backed by Avenue Capital Group and State Bank of India, is preparing to go public. This is a significant event for the Indian financial market. The Securities and Exchange Board of India (Sebi) has given the go-ahead for ARCIL’s initial public offering (IPO). This makes ARCIL the first asset reconstruction company in India to trade on a stock exchange.
Key Points
- ARCIL IPO approved by Sebi for public trading.
- Avenue Capital owns 69.73%, SBI 19.95% of ARCIL shares.
- IPO offers 105.46 million shares to public investors.
- Avenue Capital selling 68.73M shares, SBI 19.44M shares.
- IIFL, IDBI Capital, JM Financial manage the share sale.
- Public listing boosts ARCIL’s visibility and market access.
The IPO is structured as an “Offer for Sale” (OFS). This means that Avenue Capital Group, through its unit Avenue India Resurgence Pte Ltd, is selling a large chunk of its shares – 68.73 million. SBI is also selling 19.44 million shares. Other investors like Lathe Investment Pte Ltd, Federal Bank, Karnataka Bank, and South Indian Bank are also selling shares in the OFS.
Investment banking firms, specifically IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial, have been appointed as the “bookrunners.” These firms play a crucial role in managing the share sale process and ensuring a smooth trading experience for investors once the IPO is listed.
The ARCIL IPO represents a strategic step towards increased market access and transparency.
