Arabian Petroleum IPO will open for subscription from 25 September 2023. The company aims for an issue size of ₹20.24 Cr through this IPO.
Company Overview
| Full name | Arabian Petroleum Limited |
| Sector | Petrochemicals |
| Industry | Petrochemicals |
| Company Website | https://www.arabianpetroleum.co.in/ |
About Company
Incorporated in 2009, Arabian Petroleum is in the business of manufacturing a wide range of lubricants including Specialty Oils, Coolants, etc. which are used in automobiles, industrial machines, and appliances. The business is categorized into two distinctive product divisions: (i) Automotive Lubricants – Arzol and (ii) Industrial Lubricants – SPL. In the year 2021, the company was licensed by the American Petroleum Institute (API) to use API marks on some of its products like Arzol Milage Synactiv, Arzol Super Duty, and Arzol Synpros. The company is exporting the products to countries like Guyana, Oman, Qatar, Vietnam, Sri Lanka, Sierra Leone, Zambia, Bangladesh, Chile, etc. Arabian Petroleum sells automotive lubricants under the brand name of Arzol and Industrial Lubricant under the brand name of SPL Lubricants through:
- Retail packs: Ranging from 175ML to 20L packs that are sold in plastic packets, HDPE containers, and pails for retail customers
- Wholesale packs: Ranging from 26L to 210L that are sold in HDPE containers and tin containers for wholesalers and institutional customers
- Institutional sales: For bulk supply of products in the tankers to institutional customers, subject to their requirements.
The Objectives of the Issue
- To meet Working Capital requirements.
- General Corporate Purpose.
- To meet issue expenses.
IPO Timetable
| IPO Opening date | 25 September 2023 |
| IPO Closing | 27 September 2023 |
| Basis of Allotment | 03 October 2023 |
| Initiation Refund | 04 October 2023 |
| Credit to Demat Account | 05 October 2023 |
| Listing Date | 06 October 2023 |
IPO details
| Issue type | Fixed Price Issue IPO |
| IPO issue size | ₹20.24 Cr – 2,892,000 shares |
| Fresh Issue | ₹20.24 Cr – 2,892,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Offer Price | ₹70 per share |
| Lot size | 2000 Shares |
| Market Maker portion | 148,000 shares |
| Shareholding pre-issue | 8,000,000 |
| Shareholding post-issue | 10,892,000 |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹140,000 |
| Retail (Max) | 1 | 2000 | ₹140,000 |
| HNI (Min) | 2 | 4,000 | ₹280,000 |
Reservation Details
| Other Shares Offered | 50% |
| Retail Shares Offered | 50% |
Financial Performance
| FY 2020 | FY 2021 | 9M FY 2022 | |
| Revenue | 83.92 | 109.99 | 140.15 |
| Expenses | 80.38 | 106.35 | 135.90 |
| Net income | 2.81 | 2.88 | 3.43 |
Valuations & Margins
| FY 2020 | FY 2021 | 9M FY 2022 | |
| EPS | 3.52 | 3.59 | 4.29 |
| PE ratio | – | – | 16.32 |
| RONW (%) | 27.72 | 22.09 | 20.87 |
| NAV | 12.68 | 16.27 | 20.57 |
| ROCE (%) | 36.14 | 29.71 | 29.40 |
| EBITDA (%) | 6.21 | 5.63 | 4.40 |
| Debt/Equity | 1.63 | 1.69 | 1.40 |
Company Promoters
- Mr. Hemant Dalsukhrai Mehta
- Mr. Manan Hemant Mehta
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
Lead Manager(s)
HEM SECURITIES LIMITED
904, A Wing, Naman Midtown, Senapati Bapat Marg,
Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra
Phone: +91- 022- 49060000
Email: ib@hemsecurities.com
Website: www.hemsecurities.com
IPO Registrar
PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED
9, Shiv Shakti Industrial Estate, J.R. Boricha Marg, Lower
Parel (East) Mumbai-400011, Maharashtra India
Phone: +91-022-4961-4132, 022-3199-8810
Email: support@purvashare.com
Website: www.purvashare.com
Contact Details
ARABIAN PETROLEUM LIMITED
Plot 14-B, Morivali M.I.D.C., Opp. Positive Packaging,
Ambernath (W), Ambernath Thane – 421505, Maharashtra
Phone: +0251-2395601
E-mail: cs@arabianpetroleum.co.in
Website: www.arabianpetroleum.co.in
Allotment Status
Arabian Petroleum IPO allotment status will be available on Purva Sharegistry’s website. Click on this link to get allotment status.
Final thoughts
Arabian Petroleum IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
