# ASSET RECONSTRUCTION COMPANY (INDIA) Limited: IPO analysis > ASSET RECONSTRUCTION COMPANY (INDIA) Limited (CIN U65999MH2002PLC134884) has filed a Red Herring Prospectus with SEBI for an IPO comprising an offer for sale of 5.27 Cr shares. In FY26 it reported revenue of ₹722 Cr (+24.1% on FY25) and a net profit of ₹323 Cr. Promoters hold 89.7% before the IPO. Our fact-check of its claims found 1 medium or high concern across 39 claims checked. - Page: https://ipo.innerkore.com/company/U65999MH2002PLC134884/asset-reconstruction-company-india-limited/ - CIN: U65999MH2002PLC134884 - Last updated: 2 Sep 2026 ## Key facts - **Company:** ASSET RECONSTRUCTION COMPANY (INDIA) Limited - **CIN:** U65999MH2002PLC134884 - **Filing stage:** RHP - **Latest SEBI filing:** 2 Sep 2026 - **Offer for sale:** 5,27,31,946 shares - **Bidding opens:** 9 Sep 2026 - **Bidding closes:** 11 Sep 2026 - **Listing on:** BSE, NSE - **Revenue FY26:** ₹722 Cr - **Revenue growth:** +24.1% - **Net profit FY26:** ₹323 Cr - **Revenue CAGR FY24 to FY26:** 9.1% - **Promoter holding (pre-IPO):** 89.7% - **Lead managers:** IIFL Capital Services Limited, IIFL Securities Limited, IDBI Capital Markets & Securities Limited, JM Financial Limited - **Registrar:** MUFG Intime India Private Limited - **Fact-check flags:** 0 high, 1 medium, 1 low ## Key signals (read from the filing; not investment advice) - **Growth** (look closer): 9.1% a year. Sales FY24 to FY26; latest year +24.1%. - **Profitability** (looks fine): 44.7% net margin. FY26; operating margin slipping. - **Debt** (looks fine): 0.41x equity. ₹1,206 crore borrowed at the end of FY26. - **Profit into cash** (look closer): 60% of profit. Operations brought in ₹194 crore against ₹323 crore of profit in FY26. - **One-off income** (look closer): 6% of profit. Other and one-off income is 6% of pre-tax profit; management describes 17 one-off items. - **Where the money goes** (concern): All for sale. Entirely an offer for sale: the company receives nothing. - **Red flags** (look closer): 1 to review. 39 claims checked: 0 high, 1 medium concern. ## Financial snapshot (₹ crore unless stated; consolidated) | | FY24 | FY25 | FY26 | |---|---:|---:|---:| | Sales | 606 | 582 | 722 | | Sales growth | – | -4.0% | 24.1% | | Operating profit | 420 | 420 | 476 | | Operating margin | 69.4% | 72.2% | 65.9% | | Net profit | 311 | 309 | 323 | | Net margin | 51.3% | 53.2% | 44.7% | | Net worth | 2,427 | 2,663 | 2,955 | | Borrowings | 150 | 306 | 1,206 | | Return on equity | 12.8% | 11.6% | 10.9% | ## Non-recurring items (as described by management) - Accrual of management fees is discontinued once the NAV rating is withdrawn/discontinued. (p.398) - The cumulative gain or loss previously accumulated in the reserve for equity instruments through other comprehensive income is not reclassified to profit or loss on disposal of the investments. (p.402) - The accrual of management fees is discontinued once the NAV rating is withdrawn/discontinued. (p.408) - Outstanding Investments in Security Receipts are written off if there is no realistic prospect of recovery from such trusts on expiry of maximum resolution period or on closure of the concerned trust; whichever is earlier. (p.413) - Management Fees and Other recoverable from trust are written off if there is no realistic prospect of recovery from such trusts on expiry of maximum resolution period or on closure of the concerned trust; whichever is earlier. (p.413) - Loan and Debt securities will be written off when they remain overdue continuously for a period more than 3 years and there is no reasonable expectation of recovery from such financial assets. (p.413) - Expenses incurred after acquisition of assets on the formation of the trusts like stamp duty and registration charges which are recoverable from the trusts, are written off, if these expenses are not realised within 180 days from the planning period or downgrading of SRs i.e. Net Asset Value (NAV) is less than 50% of the face value of SRs whichever is earlier. (p.415) - Unrealised management fees written off comprise unrealised management fees, unbilled management fees written off, unrealised expenses recoverable from trusts, and investment in security receipts written off. (p.416) - Expenses increased by 61.50% from ₹176.68 Crore in Fiscal 2025 to ₹285.34 Crore in Fiscal 2026, primarily on account of an increase in finance cost by 189.65% from ₹12.49 Crore in Fiscal 2025 to ₹36.18 Crore in Fiscal 2026, and an increase in write off of security receipts, unrealized fee and expenses by 136.45% from ₹36.71 Crore in Fiscal 2025 to ₹86.81 Crore in Fiscal 2026. (p.417) - Write off of security receipts, unrealized fee and expenses decreased by 25.48% from ₹49.26 Crore in Fiscal 2024 to ₹36.71 Crore in Fiscal 2025. (p.419) - Net cash generated from operating activities in Fiscal 2026 was ₹193.83 Crore, primarily as a result of gain/ (loss) on consolidation of ₹65.63 Crore and security receipts written off of ₹71.96 Crore. (p.421) - Net cash generated from operating activities in Fiscal 2025 was ₹283.47 Crore, primarily as a result of fair value gain on security receipts of ₹ (1,347.84) million, unrealised fees and expenses written off (net) of ₹ (693.01) million, loss on consolidation of ₹ (225.82) million, interest income on tax refund of ₹ (217.82) million and interest on deposits. (p.421) - Realisation against investments was written off in previous years for ₹ (1,454.95) million in Fiscal 2024. (p.423) - Unrealised fees and expenses were written off (net) for ₹97.74 Crore in Fiscal 2024. (p.423) - Write off of security receipts, unrealized fee and expenses increased by 136.45% from ₹36.71 Crore in Fiscal 2025 to ₹86.81 Crore in Fiscal 2026. (p.427) - Write off of security receipts, unrealized fee and expenses decreased by 25.48% from ₹49.26 Crore in Fiscal 2024 to ₹36.71 Crore in Fiscal 2025. (p.427) - The ratings are compulsorily withdrawn for security receipts over 8 years, except in certain exceptional circumstances prescribed by the RBI. (p.433) ## Fact-checked claims - **MEDIUM** (LitigationStatus): A term loan facility was availed by Aircel Cellular Limited and Dishnet Wireless Limited from domestic lenders, leading to a committee of creditors and subsequent insolvency proceedings, with a dispute regarding spectrum licensing rights, currently pending.. The search results corroborate the part of the claim regarding the insolvency proceedings involving Aircel Limited, Dishnet Wireless Limited, and the subsequent court cases. Some results mention that the judgment arose from the insolvency of these entities after defaulting on a license, and others discuss the treatment of spectrum usage rights in insolvency. - **LOW** (LitigationStatus): An original application was filed by State Bank of India against Ashok B. Jiwrajka and others for recovery of outstanding dues arising from credit facilities extended to Alok Industries Limited, with a total of ₹8,217.00 Crore involved, currently pending.. The search results mention legal proceedings and appeals related to Alok Industries Limited and individuals like Ashok B. Jiwrajka, but they do not directly corroborate the specific claim regarding a recovery application by the State Bank of India for ₹8,217.00 Crore. - **NONE** (PromoterBackground): The Company’s share in Corporate AUM was 51.55% in Fiscal 2026, 56.32% in Fiscal 2025, and 61.18% in Fiscal 2024.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim about the company's share in Corporate AUM for the specified fiscal years. - **NONE** (PromoterBackground): The Company's share in the total AUM was 21.88% in Fiscal 2026, 19.57% in Fiscal 2025, and 18.14% in Fiscal 2024.. No current web search results were found to corroborate, contradict, or provide any information regarding the stated share percentages of ASSET RECONSTRUCTION COMPANY (INDIA) Limited in the AUM for the specified fiscal years. - **NONE** (PromoterBackground): No dividend has been declared or paid by the Company during the last three Fiscals preceding the date of this Red Herring Prospectus nor since April 1, 2026 until the date of this Red Herring Prospectus.. No web search results were found to corroborate, contradict, update, or provide any information regarding the claim made in the Draft Red Herring Prospectus. - **NONE** (PromoterBackground): The dividend policy of the Company was adopted and approved by the Board in a meeting held on August 18, 2022 and subsequently amended on May 29, 2024.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the dividend policy adoption and amendment dates mentioned in the claim. - **NONE** (PromoterBackground): The promoters have disassociated from State Bank of India in connection with the sale of equity shares on June 18, 2025.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim that the promoters disassociated from the State Bank of India for equity share sales on June 18, 2025. - **NONE** (PromoterBackground): The Nomination and Remuneration Committee was constituted by the Board pursuant to a resolution passed on January 31, 2004 and re-constituted on May 7, 2025 and May 25, 2025.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim about the constitution and re-constitution of the Nomination and Remuneration Committee by ASSET RECONSTRUCTION COMPANY (INDIA) Limited. - **NONE** (PromoterBackground): The Audit Committee was constituted by the Board pursuant to a resolution passed on January 20, 2003 and re-constituted on August 25, 2025 and April 27, 2026.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim about the constitution and re-constitution of the Audit Committee by ASSET RECONSTRUCTION COMPANY (INDIA) Limited. - **NONE** (PromoterBackground): None of the directors have received or were entitled to receive any remuneration, sitting fees or commission from the Subsidiary or Associates for the Fiscal 2026.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim made in the DRHP regarding director remuneration or fees for Fiscal 2026. - **NONE** (PromoterBackground): Phanindranath Kakarla, Chief Executive Officer and Managing Director, was appointed as President of the Company from April 2, 2025 until March 8, 2026 and was entitled to receive ₹1.20 Crore as compensation accrued in Fiscal 2026, payable in Fiscal 2027.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim made about Phanindranath Kakarla's appointment, compensation, or tenure as President of ASSET RECONSTRUCTION COMPANY (INDIA) Limited. - **NONE** (PromoterBackground): SBI Infra Management Solutions Private Limited is under the process of liquidation.. No current web search results were found to corroborate, contradict, or provide any information regarding the claim that SBI Infra Management Solutions Private Limited is under the process of liquidation. ## Common questions ### How big is the ASSET RECONSTRUCTION COMPANY (INDIA) Limited IPO? ASSET RECONSTRUCTION COMPANY (INDIA) Limited's IPO comprises an offer for sale of 5.27 Cr shares, according to its Red Herring Prospectus. The price band is not stated in that document. ### What are ASSET RECONSTRUCTION COMPANY (INDIA) Limited's revenue and profit? ASSET RECONSTRUCTION COMPANY (INDIA) Limited reported revenue from operations of ₹722 Cr in FY26, +24.1% versus FY25. Net profit was ₹323 Cr (FY25: ₹309 Cr). Revenue grew at a compound rate of 9.1% a year from FY24 to FY26. Figures are read from the RHP, as printed there. ### How much do promoters own in ASSET RECONSTRUCTION COMPANY (INDIA) Limited? Promoters hold 89.7% of ASSET RECONSTRUCTION COMPANY (INDIA) Limited before the IPO. Largest holders listed: Avenue India Resurgence Pte. Ltd. (69.7%); Avenue India Resurgence Pte. Ltd. (69.7%); Avenue India Resurgence Pte. Ltd. (69.7%). ### What are the red flags in ASSET RECONSTRUCTION COMPANY (INDIA) Limited's RHP? We fact-checked 39 claims from the filing against the open web: 0 raised a high concern, 1 medium and 1 low. The most notable: The search results corroborate the part of the claim regarding the insolvency proceedings involving Aircel Limited, Dishnet Wireless Limited, and the… This is an automated screen, not a verdict; each finding links to its sources. ### What does ASSET RECONSTRUCTION COMPANY (INDIA) Limited do? तो ध्यान से सुनिए, Aircel Cellular Limited की IPO DRHP में जो mentioned है, वो ये है कि insolvency proceedings के दौरान spectrum usage rights का treatment एक major point of contention रहा है, क्योंकि court cases में ये clear हुआ है कि license defaulting होने पर spectrum rights का क्या होगा। ### Who manages the ASSET RECONSTRUCTION COMPANY (INDIA) Limited IPO? Book running lead managers: IIFL Capital Services Limited, IIFL Securities Limited, IDBI Capital Markets & Securities Limited, JM Financial Limited. Registrar to the offer: MUFG Intime India Private Limited. Shares are proposed to list on BSE and NSE. ### Where can I read the original ASSET RECONSTRUCTION COMPANY (INDIA) Limited IPO documents? All 2 filings for ASSET RECONSTRUCTION COMPANY (INDIA) Limited (RHP, Other) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document. ## Source documents - [ASSET RECONSTRUCTION COMPANY (INDIA) Limited - RHP](https://www.sebi.gov.in/sebi_data/attachdocs/sep-2026/1788331195841.pdf) (Red Herring Prospectus, filed 2 Sep 2026) - [ASSET RECONSTRUCTION COMPANY (INDIA) Limited - RHP](https://www.sebi.gov.in/sebi_data/commondocs/sep-2026/ASSET%20RECONSTRUCTION%20COMPANY%20-AP_p.pdf) (Other filing, filed 2 Sep 2026) --- Source: InnerKore IPO (https://ipo.innerkore.com/). Read from public SEBI filings by automated extraction; check the linked documents. Not investment advice.