IIFL Capital Services Ltd.
IDBI Capital Markets & Securities Ltd.
JM Financial Ltd.
Company Profile
The Company is an asset reconstruction company (“ARC”) operating across India and are engaged in the business of acquiring stressed assets from banks and financial institutions and implementing resolution strategies through restructuring, enforcement of rights on underlying securities and settlement aimed at maximizing recovery and optimizing the value of such stressed assets in order to generate revenue streams. It is pioneers in the asset reconstruction industry since it was the first ARC to be incorporated in India (Source: CRISIL Report) having obtained our certificate of registration to commence our operations on August 29, 2003 from the Reserve Bank of India (“RBI”)
Its first mover advantage in the asset reconstruction industry in India and long operating history has equipped it to navigate the evolving regulatory landscape for asset reconstruction and securitisation in India, providing it significant competitive advantages. It operates across three business verticals – Corporate loans, SME and Other loans and Retail loans and classify the stressed assets that it acquires based on the resolution mechanism it employ which are subject to its internal assessments.
For the year/period ended (Rs. in Cr.)
| FY26 | FY25 | FY24 | |
|---|---|---|---|
| Total Revenue | 785.08 | 623.40 | 574.11 |
| Profit After Tax | 407.84 | 355.32 | 305.34 |
| EPS | 12.55 | 10.14 | 10.17 |
| EBITDA Margin (%) | 78.21% | 82.47% | 79.37% |
| PAT Margin (%) | 51.95% | 57.00% | 53.19% |
For year/ period ended ( in Cr.)
| Company Name | Market Cap (Cr.) | Price | P/BV | P/E | Sales (Cr.) FY26 |
Net Profits(Cr.) FY26 |
|---|---|---|---|---|---|---|
| Asset Reconstruction | 4516.07* | 139 | 1.46 | 11.07 | 785.08 | 407.84 |
*Market cap @upper band
The Asset Reconstruction Co. (India) Ltd. IPO is a 100% Offer for Sale (OFS), so the company will not receive any funding and the entire IPO proceeds will go to the selling shareholders.
At the upper band of IPO Rs. 139, the stock is valued at 11.07 P/E multiple. Hence, well-informed investors subscribe for medium to long term perspective.