The company Arabian Petroleum Limited is coming up with an IPO of INR 20.24 crores. The offer consists of a fresh issue of equity shares.The company intends to utilise the raised funds to meet the working capital requirements of the company.
Arabian Petroleum IPO – Important Details
| Arabian Petroleum IPO Date | September 25, 2023 to September 27, 2023 |
| Arabian Petroleum IPO Listing Date | October 9, 2023 |
| Arabian Petroleum IPO Price | INR 70 per share |
| Arabian Petroleum IPO Lot Size | 2000 Shares |
| Arabian Petroleum IPO Total Issue Size | INR 20.24 crores |
| Arabian Petroleum IPO Basis of Allotment | October 4, 2023 |
| Arabian Petroleum IPO Initiation of Refunds | October 5, 2023 |
| Arabian Petroleum IPO Credit of Shares to Demat | October 6, 2023 |
| Arabian Petroleum IPO Issue Type | Book Built Issue IPO |
| Arabian Petroleum IPO Listing At | NSE SME |
Arabian Petroleum Ltd IPO – Company Profile
The company is in the business of manufacturing wide range of Lubricants including Specialty Oils, Coolants etc used for Industrial and Automotive applications. Our business is categorized into two distinctive product division: (i) Automotive Lubricants – Arzol and (ii) Industrial Lubricants – SPL. We are dedicated to consistently providing products that deliver stellar quality and comply with statutory requirements in the Automotive and Industrial Lubricants domain.
The company’s domestic and international customers are spread across multiple industries, including pharmaceutical, FMCG, chemicals, steel, rubber and tyre, power, civil engineering, electrical appliances, textile, telecommunication, chemical, cables and conductors and automobile industry etc. Apart from private players, the company also derives revenues from the Government sectors (both central and state) and associated entities. The company has also supplied lubricants to the Indian Armed Forces and have successfully delivered lubricants.
Arabian Petroleum IPO Objective
The company seeks to finance working capital for growth and general corporate purposes, including IT advancement and future expansion.
Funding working capital requirement: The company requires additional working capital for funding future growth requirements of the company and for other business purposes. The company plans to utilise INR 14 crores for the said purpose.
General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,etc
Arabian Petroleum Ltd IPO Risks And Challenges
The company’s specialty oils and lubricants face risks from international market conditions and regulations. The Ukraine-Russia conflict disrupts operations and material sourcing, potentially impacting revenue. Competing against cheaper imports and new entrants poses risks to business and finances.
- The demand of our specialty oils and lubricants products in foreign countries is subject to international market conditions and regulatory risks that could adversely affect the business and results of operations.
- Due to the outbreak of war in Ukraine and Russia, all the business operations in Ukraine were disrupted and the company is facing challenges or delays to source raw materials from XADO in connection with the operations of products related to its technology. If the severity persists, it may affect the revenue from sale of XADO driven products “ARZOL PROBUZ” and “ARZOL REVERTO” in future.
- The company operates in a competitive business environment and is also exposed to the risk of losing market share to cheaper imports from other countries. Failure to compete effectively against the competitors and new entrants to the industry may adversely affect the business, financial condition and results of operations.
Arabian Petroleum IPO Peer Comparison
| Company | Total Income (₹ in crores) | Face Value per Equity Share (₹) | P/E | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Arabian Petroleum Limited | 243.95 | 10 | 11.51 | 6.08 | 22.08% | 76.17 |
| Tide Water Oil Co. (India) Limited | 1868.79 | 10 | 18.42 | 67.37 | 17.08% | 438.25 |
| GP Petroleums Limited | 791.44 | 10 | 9.18 | 4.94 | 78.52% | 54.17 |
Arabian Petroleum Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 10,998.70 | 19,101.28 | 24,283.67 |
| Equity (₹ in lakhs) | 1,301.98 | 1,716.32 | 2,202.80 |
| Expenses (₹ in lakhs) | 10,634.55 | 18,576.80 | 23,740.83 |
| Profit and Loss After Tax (₹ in lakhs) | 287.54 | 414.34 | 486.48 |
| RoNW (%) | 22.09% | 24.14% | 22.08% |
| Diluted EPS only (₹) | 3.59 | 5.18 | 6.08 |
| NAV per Equity Share (₹) | 16.27 | 21.45 | 27.54 |
| Total Assets (in lakhs) | 5,031.88 | 7,134.94 | 7,650.88 |
| Total Liabilities (in lakhs) | 3,729.9 | 5,418.62 | 5,448.08 |
Arabian Petroleum Limited IPO – Industry & Market Potential
India is the second-largest lubricant consumer in the region, and third in the world, after the United States and China.Furthermore, the Indian government has been rolling out initiatives to attract FDI in the automotive industry, allowing 100% FDI under the automatic route
Lubricating oil is considered as a fluid structural element of machines and devices. Its main task is to create a layer in the form of a microfilm between the moving elements of the device. Due to the specific properties, lubricating oil during operation can fulfill many functions, such as minimization of friction, elimination of scuffing of rubbing machine elements, washing of carbon deposits and micro particles, anti-corrosion, cooling, and other effects.Lubricating oil is a mixture of base oil (>85%) and enriching additives.
India enjoys several advantages for the growth of lubricator industry such as design skills (like CAD,CAM), lower cost of manufacture, Availability of raw materials, Availability of skilled manpower, presence of support industries (like plastic & machine tools), growth in end user industries, Proximity to Key Global Markets, supportive government policies, etc.
Arabian Petroleum IPO – Type of Offer
The company Goyal Salt Limited is coming up with an IPO of INR 20.24 crores. The offer consists of a fresh issue of equity shares at a price of INR 70 per share.
Arabian Petroleum Ltd IPO Offer Size
Arabian Petroleum Limited plans to launch an INR 20.24 crores IPO, involving the issuance of fresh equity shares. The company’s objective is to use the raised capital to address its working capital needs.
Arabian Petroleum Limited IPO Allotment Structure
Investors are categorized into Retail Individual Investors (up to INR 2 lakhs) and Others (above INR 2 lakhs). Market Makers get 1,48,000 shares, 5.12% of the total issue.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs
Market Maker Reservation: Total of 1,48,000 equity shares are reserved for market makers. This forms 5.12% of the total issue.
How to apply for Arabian Petroleum IPO?
To apply for the Arabian Petroleum IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Arabian Petroleum IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Arabian Petroleum IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Arabian Petroleum IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Arabian Petroleum IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Arabian Petroleum IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Arabian Petroleum IPO:
Registrar’s Website: Visit the website of Purva Sharegistry (India) Pvt. Ltd, the registrar of the Arabian Petroleum IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Arabian Petroleum IPO Offer Registrar
The registrar for the Arabian Petroleum Limited’s IPO is Purva Sharegistry (India) Pvt. Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Purva Sharegistry (India) Pvt. Ltd
Unit No. 9, Ground Floor, Shiv Shakti Industrial. Estate,
J. R. Boricha Marg,Lower Parel East,
Mumbai-400011, Maharashtra, India.
Tel No.: 91 22 2301 8261
Website: www.purvashare.com
Email: [email protected]
Arabian Petroleum Limited IPO FAQs
What is the allotment date of the Arabian Petroleum Limited IPO?
The allotment date is 4th October 2023.
What is the price band of the Arabian Petroleum Limited IPO?
The price is INR 70 per share.
What is the size of the Arabian Petroleum Limited IPO?
Arabian Petroleum Limited plans to launch an INR 20.24 crores IPO, involving the issuance of fresh equity shares. The company’s objective is to use the raised capital to address its working capital needs.
What is the listing date of the Arabian Petroleum Limited IPO?
The listing date is October 9, 2023.
