Asset reconstruction major, Asset Reconstruction Company (India) Ltd (Arcil), may tap the overseas market to raise funds between $100 million and $300 million.
According to Vinayak Bahuguna, CEO and Managing Director, Arcil, the proposal is expected to be placed before the board by the end of this fiscal.
"We may look to raise $100 million-$300 million, preferably from the overseas market. Ideally, we want to keep this amount as a fund. But all this will first be placed before the board for approval," he said on the sidelines of a banking summit organised by the Indian Chamber of Commerce (ICC).
Its current capital base stands at ₹1,500 crore.
Bahuguna, however, did not mention the instrument he would opt for or the time-frame to raise funds.
Fund-raising would also depend on the business environment i.e. depending on the price at which bad assets would be available.
Bahuguna urged the banks to charge the "right price" for selling bad assets.
"The banks should charge the right price for selling their bad assets to us. We are answerable to our shareholders," he said.
If the banks get their bad assets priced correctly then they would be able to get rid of a large portion of their non-performing assets, he said.
It had bought Rs 500-crore of bad assets in the first six months of this fiscal.
Arcil, the largest asset reconstruction company by way of capital, had acquired around Rs 20,000 crore of bad assets, of which Rs 11,000 crore had been liquidated.