Alchemist Asset Reconstruction Company Limited (AARC)

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Alchemist Asset Reconstruction Company Limited (AARC) is engaged in acquisition of distressed financial assets from the banking system and unlocking the value from these assets by customized reconstruction and value enhancement of the underlying businesses / securities through an efficient resolution process.

The company has been sponsored by highly qualified professionals who have been associated with distressed assets and Financial Services Industry for nearly two decades. It has an experienced Board and managed by experienced executive team having wide and specialized exposure in the field of resolution of distressed assets, reconstruction of sick industrial units and legal and financial restructuring. This composition uniquely positions Alchemist as a leading solution provider for the Industry.

BUSINESS OPPORTUNITY

01	INVESTORS
	Alchemist offers opportunities for different sets of Investors. An Investor can participate in deal specific Investments or acquire properties within the Companies portfolio.

02	BANKS
	Banks and Financial Institutions have an opportunity to sell their Non Performing Assets to Alchemist on a cash or structured basis.

03	COMPANIES
	Alchemist strives to provide solutions that preserve and enhance value for companies as it is sponsored by the foremost restructuring professionals in India.

04	SERVICE PROVIDERS
	Alchemist offers opportunity to the foremost valuers, advocates and legal firms, resolution agencies and consultants all around India.

BUSINESS PROCESS

INDUSTRY


	ACQUISITION
	Alchemist acquires a financial asset which meets its investment criteria after following a detailed process which starts with identifying and filtering potential deals followed by rigorous analysis, legal and financial due diligence, site visit and valuation. An independent committee evaluates and approves the Investment decision prior to acquisition.


	RESOLUTION
	Alchemist’s resolution process begins at the time of acquisition wherein an assessment is made about the likely resolution process. The financial asset is further evaluated and a resolution strategy is implemented within six months of acquisition. Resolution could be through restructuring, settlement, replacement of management or asset sale.

GENESIS OF ARCS

ARCs were set up to deal with the huge stock of NPA in the country’s financial asset pool.

ARC FRAMEWORK

ARCs are licensed by the RBI under the SARFAESI ACT to acquire NPAs from Banks and financial institutions.

Milestones

2014	Minimum Investment requirement increased from 5% to 15%
2013	FDI limit in ARC increased from 49% to 100%