Asset Reconstruction Company India Ltd (Arcil) has raised Rs 220 crore from anchor investors ahead of its initial public offering (IPO).

The three-day IPO opens for public subscription on Wednesday and closes on 11 September. 

The company allotted 1.58 crore shares to 21 anchor investors at Rs 139 per share, the upper end of the IPO price band. The lower price band is set at Rs 132 per share.

At the upper end of the price band, the issue size is estimated at around Rs 733 crore. At the lower end, it would be Rs 696 crore.

The anchor investors included Goldman Sachs India Asset Management Company, WhiteOak Capital, Bandhan Mutual Fund, Bajaj Life Insurance Limited, JM Financial Mutual Fund, IndusInd General Insurance Company Limited, Groww Mutual Fund, Tata Mutual Fund, Aditya Birla Sun Life Mutual Fund, Societe Generale, BofA Securities Europe SA and Integrated Core Strategies (Asia) Pte. Ltd.

Of the total anchor allocation, 81.29 lakh shares, or 51.39%, were allotted to six domestic mutual funds through 12 schemes. Life insurance companies and pension funds have been allocated 7.19 lakh shares, or 4.55%.

The IPO is entirely an offer for sale (OFS) of 5.27 crore equity shares. The shares will be sold by promoters -- Avenue India Resurgence Pte Ltd and State Bank of India-- along with existing shareholders Lathe Investment Pte Ltd and Federal Bank Ltd.

Since the issue comprises only an OFS, Arcil will not receive any proceeds from the IPO. The entire proceeds from the share sale will accrue to the selling shareholders.

When Arcil lists on the stock exchanges, it will become the first standalone asset reconstruction company (ARC) to do so. The company is scheduled to list on the BSE and NSE on 17 September.

Arcil in its Red Herring Prospectus (RHP) stated the listing of equity shares will enhance its visibility and brand and provide liquidity to existing shareholders. It will also provide a public market for the company's equity shares in India.

Arcil, which has been operating as an ARC for nearly 25 years, does two things. It acquires stressed assets from banks and financial institutions. It also implements resolution strategies through restructuring, enforcement of rights over underlying securities and settlement.