Arete 22 Files For Rs 440 Crore IPO, Funds To Support Working Capital And Debt Repayment

New Delhi: Arete 22 Ltd, an integrated precision aluminium mobility solutions provider, has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise Rs 440 crore through an initial public offering.

The proposed IPO consists entirely of a fresh issue of equity shares, according to the Draft Red Herring Prospectus (DRHP) filed on Friday. The offer will therefore raise funds for the company through newly issued shares.

Use Of Proceeds

The company plans to allocate Rs 150 crore towards working capital requirements and Rs 120 crore towards repayment or prepayment of certain borrowings.

A further Rs 34.82 crore has been earmarked for purchasing plant and machinery for its existing manufacturing facilities. The remaining proceeds will be deployed for general corporate purposes.

Together, the three specified allocations amount to Rs 304.82 crore, with working capital accounting for the largest proposed use of funds.

Manufacturing Footprint

Incorporated in February 2021, Arete 22 manufactures aluminium alloy wheels and precision aluminium high-pressure die-cast components for automotive original equipment manufacturers.

Its principal business centres on producing aluminium alloy wheels for motorcycles and scooters. The company operates two alloy wheel manufacturing facilities, situated in Bilaspur, Haryana, and Kolar, Karnataka.

These facilities have a combined installed production capacity of 60 lakh wheels annually, supporting the company's manufacturing operations across the two locations.

Arete 22 acquired Unicast Autotech Pvt Ltd in 2026. Through this material subsidiary, it also manufactures precision aluminium components used in engines, transmissions, powertrains and structural applications.

Financial Performance

Revenue from operations increased to Rs 537.95 crore in fiscal 2026 from Rs 112.46 crore in fiscal 2024, marking substantial growth over the period.

Profit after tax rose to Rs 44.97 crore from Rs 2.92 crore during the same period, alongside the increase in operating revenue.

Unistone Capital is the banker to the proposed issue, while Bigshare Services will act as registrar, according to the details outlined in the company's draft filing.