Asset Reconstruction Company gets a new shareholder

Asset Reconstruction Company (India) Ltd (Arcil) has successfully completed its rights issue of 12 crore shares of Rs 10 each at a price of Rs 30 per share. Post issue, Arcil's equity capital stands increased to Rs 220 crore while the net-owned fund has risen to Rs 492 crore.

The Infrastructure Finance Development Corporation(IDFC) has become the new shareholder of Arcil after picking up 8.71% stake. Currently, the the largest share holder of Arcil is ICICI Bank which has a stake of 29.58%.

The State Bank of India and Punjab National Bank have stakes of 19.95% and 10% respectively in Arcil. The IDBI Ltd has a stake of 19.95%.

Other banks and financial institutions including Housing Development Finance Company, HDFC Bank Ltd. Federal Bank Ltd, The South Indian Bank Ltd, Karur Vysya Bank Ltd, Karnataka Bank Ltd., Citicorp Finance (India) Ltd. have less than 3% stake in Arcil.

Arcil is the first Asset Reconstruction Company (ARC) to commence business in India. ARCs are established to acquire non-performing assets (NPAs) from financial institutions and banks with the objective of focused management of these assets and maximization of recovery. Relieving institutions and banks of the burden of NPAs should allow them to focus on core activities. Arcil has been set up to fulfill these objectives in the Indian banking landscape. It commenced business with effect from August 29, 2003

Click here for more news & stories
Click here for market news