Arcil eyes collection services, MFI as new growth avenues ahead of ₹733-crore IPO
Preparing to launch its ₹733-crore IPO next week, with the price band fixed at ₹132-139 a share
Asset Reconstruction Company (India) is exploring collection services and microfinance institution (MFI) as growth avenues ahead of its ₹733-crore IPO. The company, set to become India's first listed asset reconstruction firm, is receiving positive responses from banks and non-banking financial companies (NBFCs) for its Collection-as-a-Service (CaaS) business model.
Pramod Kumar Gupta, CFO of Arcil, stated that the company is too early to determine the eventual size of the business but believes its regulatory framework and extensive retail experience could give it a competitive edge over conventional collection agencies. Arcil, currently managing a ₹4,500 crore retail book and ₹20,000 crore of principal outstanding across 35 lakh borrowers, is also considering expanding its presence in the MFI segment.
The company's retail strategy focuses on leveraging technology to improve collection efficiency and cost-effectiveness, while its overall strategy involves managing stressed assets across various sectors, including housing, vehicle, unsecured loans, credit cards, personal loans, and education loans.
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