Arabian Petroleum Ltd IPO Timeline

Arabian Petroleum Ltd IPO opens on 25-Sep-2023, and closes on 27-Sep-2023. The Arabian Petroleum Ltd IPO bid date is from 25-Sep-2023 to 27-Sep-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Arabian Petroleum Ltd IPO Opening Date 25-Sep-2023
Arabian Petroleum Ltd IPO Closing Date 27-Sep-2023
Basis of Allotment 04-Oct-2023
Initiation of Refunds 05-Oct-2023
Credit of Shares to Demat 06-Oct-2023
Arabian Petroleum Ltd IPO Listing Date 09-Oct-2023

Arabian Petroleum Ltd IPO Lot Size

Arabian Petroleum Ltd IPO lot size is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or 140000).

Application Lots Shares Amount
Minimum 1 2000 ₹140000
Maximum 1 2000 ₹140000

Arabian Petroleum Ltd IPO Details

Arabian Petroleum Ltd IPO Date 25-Sep-2023 to 27-Sep-2023
Arabian Petroleum Ltd IPO Face Value Shares of ₹10 per share
Arabian Petroleum Ltd IPO Price ₹70 per share
Arabian Petroleum Ltd IPO Lot Size 2000
Issue Size Shares of ₹10 (aggregating up to ₹20.24 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹20.24 Cr)
Offer for Sale -
Issue Type Fixed Price - SME
Listing At NSE - SME
QIB Shares Offered -
Retail Shares Offered -
NII (HNI) Shares Offered -
Company Promoters Hemant Dalsukhrai Mehta, Manan Hemant Mehta.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 To meet working capital requirements
  • 2 General corporate purposes

Company Financials

Arabian Petroleum Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 76.51 243.95 4.86
03-2022 71.35 191.59 4.14
03-2021 50.32 110.25 2.88
Amount in ₹ Crore
  • One Stop Shop for All Lubricants.
  • Research and development capabilities allowing product innovation and customization.
  • Long Standing Relationship with its customers.
  • Quality Assurance and Standards.
  • Experienced and Qualified Management and Employee base.
  • Availability of raw materials and fluctuation in the prices of raw materials like base oil and additives, may adversely affect its business, financial condition and results of operation.
  • The company also sells its products through network of distributors, dealers and depots, and any inability to expand or effectively manage its growing distribution and sales network may have an adverse effect on the company business, results of operations and financial condition.
  • The company's business is dependent on its manufacturing facilities and the company is subject to certain risks in its manufacturing process. Obsolescence, destruction, theft, breakdowns of its machineries or failures to repair or maintain the same may affect the company business, cash flows, financial condition and results of operations.
  • The Company is involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.
  • The demand of its specialty oils and lubricants products in foreign countries is subject to international market conditions and regulatory risks that could adversely affect its business and results of operations.
  • The company is subject to risks associated in relation to its agreement with XADO group.
  • The company relies on third parties for transportation of raw materials to its manufacturing facilities and for transportation of the company finished products to its dealers, distributors, depots and customers and any disruption in its transportation arrangements or increases in transportation costs may adversely affect the company business, results of operations and financial condition.
  • Any delay or default in payment from its distributors and customers could result in the reduction of the company profits and affect its cash flows.
  • There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
  • The company success depends on its ability to develop and commercialize new or customized products in a timely manner. If such new or customized products are not developed successfully its business, growth and financial condition may be adversely affected.
  • The company is dependent on the growth prospects of the automobile industry and other industrial sectors.
  • The company is currently avail benefits under certain export promotion schemes. In order to continuously avail the benefits its required to export goods of a defined amount. Any failure in meeting the obligations, may adversely affect its financial condition.
  • The company is subject to strict quality requirements, customer inspections and audits, and any failure to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company business and results of operations and future prospects.
  • The company's business is substantially dependent on its ability to accurately carry out the pre-bidding studies for potential contracts. Any deviation during the execution of the contract as compared to its pre-bid estimates could have a material adverse effect on the company cash flows, results of operations and financial condition.
  • The Company operates under several statutory and regulatory approvals in respect of its operations. Failure to obtain or maintain licenses, registrations, permits and approvals may affect its business and results of operations.
  • The company have significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
  • The company does not have long term agreements with its customers and suppliers.
  • Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on the company business and financial condition.
  • The company is dependent on its Promoters, its senior management and other key personnel, and the loss of, or the company inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.
  • The company manufacturing activities require deployment of labour and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.
  • The company manufacturing facilities are located on leased premises and its corporate office and warehouses are availed on rent If the company is unable to renew these leases or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
  • The Trademarks used by the Company are not registered or owned by it. Thus, its may be subject to claims alleging breach of third-party intellectual property rights. Failure to protect its intellectual property rights may adversely affect the company competitive business position, financial condition and profitability.
  • The company operates in a competitive business environment and are also exposed to the risk of losing market share to cheaper imports from other countries. Failure to compete effectively against its competitors and new entrants to the industry may adversely affect its business, financial condition and results of operations.
  • Fluctuation in foreign currency exchange rates could affect its financial condition and results of operations.
  • Inventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.
  • The company have significant power requirements for continuous running of its factory. Any disruption to its operations on account of interruption in power supply or any irregular or significant hike in their tariffs may have an effect on its business, results of operations and financial condition.
  • The company contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
  • If the company is unable to manage its growth effectively, its business, future financial performance and results of operations could be materially and adversely affected.
  • Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition
  • The company Promoters and Promoter Group Members have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations and thereby, impact its business and operations.
  • The company appoint contract labours for carrying out certain operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations and financial condition.
  • Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business and results of operations. Moreover, information relating to capacity utilization of the company production facilities included in this Draft Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
  • Invocation of performance bank guarantees by its customers could impact the company results of operations and its may face potential liabilities from claims by customers in the future.
  • Excessive dependence on Kotak Mahindra Bank Limited and Standard Chartered Bank in respect of Loan facilities obtained by the Company.
  • Failure to comply with environmental laws and regulations by it could lead to unforeseen environmental litigation which could impact its business and the company future net earnings.
  • The Company has during the preceding one year from the date of the Draft Prospectus have allotted Equity Shares at a price which is lower than the Issue Price.
  • The company is subject to certain restrictive covenants in debt facilities provided to it by the company lenders.
  • The company have in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
  • Changes in technology may render its current technologies obsolete or require the company to make substantial investments.
  • The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of Equity Share.
  • The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
  • The company have not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
  • Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
  • The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
  • The company ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
  • There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
  • The company Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • The company may require further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
  • The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • Certain data mentioned in this Draft Prospectus has not been independently verified.
  • Investors other than retail (including non-institutional investors and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an Application.
  • Strengthening its Industrial and Automotive lubricants products portfolio.
  • Expanding its customer reach, distribution network and export sales.
  • Continue to strive for cost efficiency.
  • Focus on consistently meeting quality standards.

Arabian Petroleum Ltd IPO Promoter Holding

Pre Issue Share Holding 48.67%
Post Issue Share Holding 35.75%

Arabian Petroleum Ltd IPO Subscription Status (Bidding Detail)

The Arabian Petroleum Ltd IPO is subscribed - times on Sep 27, 2023 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) - - - - -

Arabian Petroleum Ltd IPO Prospectus

Arabian Petroleum Ltd IPO Listing Date

Listing Date 09 Oct 23
BSE Script 77164
NSE Symbol ARABIAN
Listing In NSE - SME
ISIN INE08NJ01024
IPO Price ₹70
Face Value ₹10

Arabian Petroleum Ltd IPO Registrar

Purva Sharegistry (I) Pvt Ltd

Phone: +91 22 2301 8261
Email: support@purvashare.com
Website: www.purvashare.com

Arabian Petroleum Ltd IPO Lead Manager(s)

  1. Hem Securities Ltd

FAQs on Arabian Petroleum Ltd IPO

Arabian Petroleum Ltd IPO, which opens for subscription from 25-Sep-2023 to 27-Sep-2023 has an issue size of ₹20.24 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Arabian Petroleum Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Arabian Petroleum Ltd IPO Opens for subscription from 25-Sep-2023 to 27-Sep-2023.

The lot size of Arabian Petroleum Ltd is 2000 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹140000 and ₹140000 respectively.

Allotment date for Arabian Petroleum Ltd is 04-Oct-2023 and refund of application amount (in case allotment is not received) will begin from 05-Oct-2023. If your allotment goes through, then shares will be credited in your Demat account by 06-Oct-2023.

The registrar for Arabian Petroleum Ltd IPO is Purva Sharegistry (I) Pvt Ltd. You can check your IPO allotment status on the registrar's website.

The shares of Arabian Petroleum Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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