Arete 22 Files Draft Papers With SEBI to Raise INR 440 Crore via Fresh IPO

Precision aluminium mobility solutions maker Arete 22 Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise up to ₹440 crore via an initial public offering (IPO).

The public issue consists entirely of a fresh issue of equity shares with a face value of ₹10 each, with no offer-for-sale (OFS) component from existing shareholders or promoters. Additionally, the company may explore a pre-IPO placement of up to ₹50 crore ahead of filing its Red Herring Prospectus (RHP) with the Registrar of Companies; if executed, the net fresh issue size will be reduced proportionally.

Allocation of IPO Proceeds

According to the draft offer documents, the net proceeds generated from the fresh issue will be deployed across working capital needs, debt obligations, and operational expansion.

The proposed breakdown of proceeds includes:

• Working Capital Requirements: ₹150 crore to support operating cycles and customer order fulfillment.
• Debt Repayment: ₹120 crore earmarked for full or partial repayment or prepayment of outstanding borrowings.
• Capital Expenditure: Approximately ₹34.82 crore for procuring plant and machinery for its existing manufacturing sites.
• General Corporate Purposes: The remaining balance will be deployed to fund general business and corporate needs.

Manufacturing Footprint and Business Model

Incorporated on February 9, 2021, Arete 22 operates on a business-to-business (B2B), build-to-print manufacturing model. The company specializes in manufacturing aluminium alloy wheels for motorcycles and scooters directly to automotive Original Equipment Manufacturer (OEM) specifications. Through its material subsidiary, Unicast Autotech Private Limited—which it acquired in 2026—the company also manufactures high-pressure die-cast (HPDC) precision aluminium components for engines, transmissions, powertrains, and structural automotive applications.

Arete 22 currently operates two manufacturing plants:

• Bilaspur Facility (Haryana): Houses an annual capacity of 3.60 million wheels.
• Kolar Facility (Karnataka): Houses an annual capacity of 2.40 million wheels.

Combined, both locations provide an installed manufacturing capacity of 60 lakh (6 million) wheels per annum.

Financial Snapshot

The company has recorded significant financial and operational growth over the last three fiscal years:

• Revenue from Operations: Jumped from ₹112.46 crore in FY24 to ₹537.95 crore in FY26, representing a Compound Annual Growth Rate (CAGR) of 118.70%.
• Operating EBITDA: Grew from ₹13.79 crore in FY24 to ₹94.68 crore in FY26, clocking a 161.98% CAGR.
• Profit After Tax (PAT): Increased from ₹2.92 crore in FY24 to ₹44.97 crore in FY26, representing a CAGR of 292.50%.
• Unit Realisation: Average revenue per wheel climbed from ₹1,457.58 to ₹1,671.46, accompanied by an improvement in the order completion rate from 78.46% to 90.94%.

Unistone Capital Private Limited is acting as the Book Running Lead Manager to the issue, while Bigshare Services Private Limited has been appointed as the registrar. The equity shares will be listed on both BSE and the National Stock Exchange of India (NSE).

Tags: Arete 22 SEBI IPO Auto Components Indian Stock Market Unistone Capital