Arete 22 Ltd. IPO Details
Arete 22 was incorporated on February 09, 2021. The company provides integrated precision aluminium solutions, manufacturing aluminium alloy wheels and high-pressure die-cast components for automotive OEMs. Its principal business is motorcycle and scooter wheels, while its material subsidiary manufactures precision aluminium components for engines, transmissions, powertrains and structural applications
| Bidding Dates |
|---|
| To Be Announced |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| - | - | - | - | 0 | - | - | ₹4,400.0 M | DRHP DOC |
Arete 22 issue details
Arete 22 IPO issue size is ₹ 4,400.0 M
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 35% | 15% | 50% |
Arete 22 IMPORTANT IPO DATES
| Issue Open Date | - |
| Issue close Date | - |
| Allotment Date | - |
| Refund Date | - |
| Demat Account Credit Date | - |
| Listing Date | - |
| Listing on Exchange(s) | NSE and BSE |
Arete 22 NUMBER OF SHARES ON OFFER
Arete 22 FINANCIALS
| Period | Revenue from Operations (Rs in crore) | Net Profit (Rs in crore) | Cash Flow from Operations (Rs in crore) | Free Cash Flow (Rs in crore) | Margins |
| FY26 | 537.9 | 45.0 | -18.4 | -18.5 | 17.6% |
| FY25 | 212.4 | 12.4 | -17.2 | -100.1 | 15.0% |
| FY24 | 112.5 | 12.4 | 11.7 | -28.3 | 12.3% |
Arete 22 INFORMATION ON IPO ISSUE
About Arete 22
Arete 22 was incorporated on February 09, 2021. The company provides integrated precision aluminium solutions, manufacturing aluminium alloy wheels and high-pressure die-cast components for automotive OEMs. Its principal business is motorcycle and scooter wheels, while its material subsidiary manufactures precision aluminium components for engines, transmissions, powertrains and structural applications
Object of the Issue
- Funding the working capital requirements of the company
- Repayment/prepayment, in full or in part, of certain debts availed by the company
- Purchase of plant and machinery for its existing manufacturing facilities
- General corporate purposes
Arete 22 - PROMOTERS
| Name |
|---|
| Pawan Kumar Gupta |
| Abhishek Gupta |
| Konica Gupta |
| Naveen Gupta |
Arete 22 - MANAGEMENT & LEADERSHIP
| Name | Designation |
|---|---|
| Pawan Kumar Gupta | Chairman & Non-Executive Director |
| Abhishek Gupta | Managing Director |
| Konica Gupta | Whole-time director |
| Lakshmi Kantha Ghadiyakari | Independent Director |
| Alla Veera Venkata Satya Surya Chandra Bhima Sekhar Babu | Independent Director |
| Yalamati Srinivasa Chakravarti | Independent Director |
Arete 22 Book Running Lead Manager
Unistone Capital Private Limited
mb@unistonecapital.com
Arete 22 Registrar to the Offer
Bigshare Services Private Limited
ipo@bigshareonline.com
Arete 22 Strengths
Strategic manufacturing footprint
The company operates two aluminium alloy wheel facilities in Haryana and Karnataka with a combined installed capacity of 6.00 million wheels annually across approximately 27,042 sq. m. Their proximity to OEM plants supports just-in-time supply, lower logistics costs and timely deliveries across Northern and Southern India
Client relationship
The company has established relationships with leading Indian two-wheeler OEMs across ICE and EV platforms, supported by timely delivery, competitive pricing and proximity to customers. Its successful vendor qualifications and quality systems provide revenue visibility and support opportunities from growing EV demand
Quality assurance & commitment
The company maintains strong quality assurance systems and standardised processes across its aluminium alloy wheel manufacturing operations. Its 54-member quality team conducts inspections, testing and monitoring at multiple stages to identify defects early and ensure consistent product quality
Arete 22 Risks
Raw material pricing
The company depends on the availability and pricing of key raw materials such as aluminium alloy ingots, cast iron rings and paints, which are sourced domestically. Significant price increases or supply disruptions could raise production costs, reduce margins and adversely affect financial performance
Energy intensive business
The company’s manufacturing operations require continuous electricity and industrial gas for furnaces, machining lines and other equipment, with backup generators offering limited support. Prolonged power or gas disruptions could halt production, damage work-in-progress, increase restart costs and delay customer deliveries
Inventory management risks
Monthly customer orders can cause fluctuations in demand, revenue and cash flow, requiring sudden changes in production and inventory that may increase costs or cause losses. Inadequate inventory or production capacity may lead to missed sales, while excess inventory or customer payment defaults may increase working capital needs and adversely affect profitability and liquidity.
IPO FAQs
The promoters of the company are Pawan Kumar Gupta, Abhishek Gupta, Konica Gupta and Naveen Gupta.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.