Arabian Petroleum
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Sep 2023 – 27 Sep 2023
- Listing date
- 09 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹20.24 Cr
- Market cap at offer price
- ₹76.24 Cr
- Promoter holding
- 100.00% → 73.45% pre-issue → post-issue
- ISIN
- INE08NJ01024
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Plot 14-B, Morivali M.I.D.C., Opp.Positive Packaging, Ambernath (W), Ambernath, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,48,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.08 | — |
| P/E (×) | 11.51 | — |
| Market cap | — | ₹76.24 Cr |
Key performance indicators
- Return on net worth
- 22.08%
- ROCE
- 32.47%
- Debt / equity
- 1.75
- PAT margin
- 2.00%
- NAV per share
- ₹27.54
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Arabian Petroleum
Arabian Petroleum Limited (APL) was originally incorporated as Arabian Petroleum Private Limited on March 20, 2009 and converted into a public limited company on December 16, 2011. Through a Business Takeover Agreement dated December 25, 2015, it took over the manufacturing and trading business of Industrial & Automotive Lubricants from the proprietorship firm 'Arabian Petroleum' (proprietor: Hemant D Mehta HUF) and set up its own blending plant at Ambernath, Thane, beginning with 10 blending machines; in 2019 it added Factory Unit-2 with 2 more blenders, taking total installed capacity to 40,590 KLPA, supported by approximately 2,000 KL of storage for base oil, additives and waxes and approximately 1,000 KL for semi-finished/finished products. The company blends base oils and additives into automotive lubricants sold under the registered brand 'Arzol' (motorcycle, car and commercial vehicle engine oils, gear oils, transmission fluids, tractor transmission oil and greases, including XADO Revitalizant-based ARZOL PROBUZ and REVERTO lines, with API licensing and OEM approvals from Volvo, Renault, MACK and BEML) and industrial lubricants under 'SPL Lubricants' (hydraulic, compressor, turbine, thermic, refrigeration and textile oils, metalworking fluids, rust preventives, quenchants and greases). It monetises through retail packs (175ML–20L), wholesale packs (26L–210L), bulk tanker supplies to institutions, private-label and job-work manufacturing for clients such as Varroc Engineering, Mahindra First Choice Services, Greaves Cotton, Gabriel India and J K Files, government tender supplies (Indian Armed Forces — BSF, IAF and Indian Navy; PSUs including BEML, BHEL, HAL and coal companies), and exports to Guyana, Oman, Qatar, Vietnam, Sri Lanka, Bangladesh, Dubai and other markets, distributing via around 400 dealers/distributors and 9 company-operated depots. Revenue from operations was Rs 24,283.67 lakhs in FY2022-23 (PAT Rs 486.48 lakhs), up from Rs 19,101.28 lakhs in FY2021-22 and Rs 10,998.70 lakhs in FY2020-21.
Company Analysis
from RHPArabian Petroleum Limited manufactures and sells a wide range of automotive and industrial lubricants — including specialty oils and coolants — under its 'Arzol' (automotive) and 'SPL' (industrial) brands for application in automobiles and industrial machines and appliances.
Arabian Petroleum Limited (APL) was originally incorporated as Arabian Petroleum Private Limited on March 20, 2009 and converted into a public limited company on December 16, 2011. Through a Business Takeover Agreement dated December 25, 2015, it took over the manufacturing and trading business of Industrial & Automotive Lubricants from the proprietorship firm 'Arabian Petroleum' (proprietor: Hemant D Mehta HUF) and set up its own blending plant at Ambernath, Thane, beginning with 10 blending machines; in 2019 it added Factory Unit-2 with 2 more blenders, taking total installed capacity to 40,590 KLPA, supported by approximately 2,000 KL of storage for base oil, additives and waxes and approximately 1,000 KL for semi-finished/finished products. The company blends base oils and additives into automotive lubricants sold under the registered brand 'Arzol' (motorcycle, car and commercial vehicle engine oils, gear oils, transmission fluids, tractor transmission oil and greases, including XADO Revitalizant-based ARZOL PROBUZ and REVERTO lines, with API licensing and OEM approvals from Volvo, Renault, MACK and BEML) and industrial lubricants under 'SPL Lubricants' (hydraulic, compressor, turbine, thermic, refrigeration and textile oils, metalworking fluids, rust preventives, quenchants and greases). It monetises through retail packs (175ML–20L), wholesale packs (26L–210L), bulk tanker supplies to institutions, private-label and job-work manufacturing for clients such as Varroc Engineering, Mahindra First Choice Services, Greaves Cotton, Gabriel India and J K Files, government tender supplies (Indian Armed Forces — BSF, IAF and Indian Navy; PSUs including BEML, BHEL, HAL and coal companies), and exports to Guyana, Oman, Qatar, Vietnam, Sri Lanka, Bangladesh, Dubai and other markets, distributing via around 400 dealers/distributors and 9 company-operated depots. Revenue from operations was Rs 24,283.67 lakhs in FY2022-23 (PAT Rs 486.48 lakhs), up from Rs 19,101.28 lakhs in FY2021-22 and Rs 10,998.70 lakhs in FY2020-21.
Objects of the Issue
- To meet Working Capital requirements Rs. 1,400.00 lakhs p.71
- General Corporate Purpose Rs. 486.15 lakhs p.72
- Issue Expenses Rs. 138.25 lakhs p.72
Issue Structure
- Total Issue
- Upto 28,92,000 Equity Shares aggregating up to ₹ 2024.40 lakhs
- Fresh Issue
- Fresh Issue of upto 28,92,000 Equity Shares of face value ₹ 10/- each at ₹ 70 per Equity Share aggregating ₹ 2024.40 lakhs (of which Market Maker Reservation Portion: 1,48,000 Equity Shares aggregating ₹ 103.60 lakhs; Net Issue to public: 27,44,000 Equity Shares aggregating ₹ 1920.80 lakhs)
- Offer for Sale
- Nil (entire issue constitutes fresh issue of equity shares)
- Price Band
- Fixed Price Issue at ₹ 70 per Equity Share (no price band)
- Lot Size
- 2,000 shares
- Face Value
- ₹ 10/- each
Business Model
The Company earns revenue by manufacturing and selling automotive lubricants under the 'Arzol' brand and industrial lubricants under the 'SPL Lubricants' brand through retail packs (175ML–20L), wholesale packs (26L–210L) and bulk tanker supplies to institutional customers; it also undertakes private-label and job-work manufacturing for B2B/B2C clients, supplies government entities through competitive tenders, and exports internationally, reaching customers directly and through a network of around 400 dealers and distributors and 9 company-operated depots.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Hemant Dalsukhrai Mehta | Promoter | 22.83% | 16.77% |
| Mr. Manan Hemant Mehta | Promoter | 25.84% | 18.98% |
| Mrs. Darshana Hemant Mehta | Promoter Group | 37.64% | 27.65% |
| Mrs. Nita Nitin Mehta | Promoter Group | 0.06% | 0.05% |
| Mr. Nitin D Mehta | Promoter Group | 0.13% | 0.09% |
| Mr. Dharman Manoj Mehta | Promoter Group | 6.75% | 4.96% |
| Mr. Vandan Manoj Mehta | Promoter Group | 6.75% | 4.96% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.