Arabian Petroleum LTD. IPO - Review, Valuation, Date & GMP Today

Arabian Petroleum Limited - Complete Overview

Established in 2006, Arabian Petroleum Limited is a manufacturer that produces various lubricants, including speciality oils and coolants, designed for both industrial and automotive applications. 

The company's business operations are divided into two distinct product divisions: 

Automotive Lubricants - Arzol: Under this division, the company offers a range of products, including Four-Stroke Engine Oils for Two-Wheelers, Passenger Car Motor Oils, Diesel Engine Oils, Gear and Transmission Oils, Universal Tractor and Transmission Oils, Pump Set Oils, Hydraulic Oils.

Industrial Lubricants - SPL: In the Industrial Lubricants division, the company provides solutions that enhance productivity, reduce mechanical wear, prevent system failures, and decrease energy costs. These lubricants are designed to improve the efficiency and performance of various machinery.

The company serves a diverse customer base both domestically and internationally, spanning multiple industries such as pharmaceuticals, FMCG, chemicals, steel, rubber and tires, power generation, civil engineering, electrical appliances, textiles, telecommunications, chemicals, cables and conductors, and the automobile industry, among others. Additionally, the company generates revenue through contracts with government sectors, including central and state governments and associated entities.

Furthermore, Arabian Petroleum Limited exports its products to various countries, including Guyana, Oman, Qatar, Vietnam, Sri Lanka, Sierra Leone, Zambia, Bangladesh, Chile, Jordan, Seychelles, Maldives, Fiji, Congo, Guatemala, Suriname, Peru, Mauritius, and Dubai, among others.

In the financial year 2023, the company achieved a revenue of Rs. 24,283.67 Lakhs.

 

What does the company do? 

Arabian Petroleum Limited produces an extensive array of lubricants, encompassing speciality oils and coolants, designed for applications in both the industrial and automotive sectors.

 

 

Company Products

Within the Automotive Lubricants division known as Arzol, the company offers a range of products, including Four-Stroke Engine Oils for Two-Wheelers, Passenger Car Motor Oils, Diesel Engine Oils, Gear and Transmission Oils, Universal Tractor and Transmission Oils, Pump Set Oils, and Hydraulic Oils.

In the Industrial Lubricants division, referred to as SPL, the company provides products that enhance productivity, minimize mechanical wear, prevent system failures, and decrease energy costs, thereby extending the efficiency and performance of machinery.

 

IPO Overview

The Arabian Petroleum Limited IPO date is set to be scheduled from September 25, 2023, to September 27, 2023. This SME IPO is categorized as a Fixed Price Issue IPO with a total issue size of Rs. 20.24 Crores. 

The expected listing date for this upcoming SME IPO is October 9, 2023, and the Arabian Petroleum Limited IPO price is Rs. 70 per share.

Regarding the allocation of shares, the company has allocated 50% of the shares to other investors and an equal 50% to retail investors.

 

Arabian Petroleum Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 September 2023
IPO Closing Date	27 September 2023
IPO Allotment Date	4 October 2023
Refund initiation	5 September 2023
IPO Listing Date	9 October 2023

 

Arabian Petroleum Limited IPO Details 

IPO Opening & Closing Date	25 September to 27 September 2023
Face value	Rs.10 per Share
Issue Price	Rs.70 per Share
Lot Size	2000 Shares
Price of 1 lot	Rs.140,000
Issue Size	2,892,000 Shares (Aggregating up to Rs. 20.24 Cr)
Offer for sale	NA
Fresh issue	2,892,000 Shares (Aggregating up to Rs. 20.24 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Purva Sharegistry India Pvt Ltd

 

Arabian Petroleum Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Arabian Petroleum Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	5031.88	7134.94	7650.88
Total Revenue	11024.54	19159.10	24394.68
PAT	287.54	414.34	486.48
Net Worth	1301.98	1716.32	2202.80
Reserve & Surplus	1101.98	1516.32	1402.80
Total Borrowings	2197.75	2948.97	3830.66

 

Sales bifurcation of Automotive and Industrial Lubricants Arabian Petroleum Limited

(Amount in Lakhs)

Product Category	FY 22-23	FY 21-22	FY 20-21
Automotive	8952.36	6735.37	4651.84
Industry	15189.02	12310.42	6338.16
Other	142.29	55.49	8.70
Grand Total	24283.67	19101.28	10998.70

 

Objective of the Issue

The funds raised from the issue will be utilized for the following objectives:

• Covering working capital needs.
• Addressing general corporate requirements.
• Meeting the expenses related to the IPO.

 

Promoters and Management of Arabian Petroleum Limited

Mr. Hemant Dalsukhrai Mehta and Mr. Manan Hemant Mehta are the Promoters of the Company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.45%

 

Peer Comparison 

Below are the listed peers of the Arabian Petroleum Limited:

Company Name	EPS (Rs.)	PE	Total Income (Rs. in crores)
Arabian Petroleum Limited	6.08	11.51	243.95
Tide Water Oil Co. (India) Limited	67.37	18.42	1868.79
GP Petroleums Limited	4.94	9.18	791.44

 

IPO's Valuations

The Arabian Petroleum Limited IPO price is Rs. 70 per share and EPS is Rs. 6.08, the company's P/E ratio, calculated based on the issue price, stands at 11.51.

 

Dividend Policy

The company has not issued any dividends in the past, and decisions regarding future dividend payments will be contingent upon the company's future financial performance.

 

IPO's Strengths 

• A single destination for a comprehensive range of lubricants.
• Research and development expertise enabling product innovation and tailored solutions.
• Established, enduring customer relationships.
• Stringent quality assurance and adherence to industry standards.
• An accomplished and well-qualified management team.

 

IPO Weaknesses

• Some discrepancies and errors have been identified in specific corporate records of the company, particularly concerning forms submitted to the Registrar of Companies.
• The company is subject to rigorous quality standards, as well as customer inspections and audits.
• The Company functions under various statutory and regulatory approvals that pertain to its operations.
• The company does not have extended, ongoing agreements in place with either its customers or suppliers.
• The company operates within a competitive business landscape and faces the risk of losing market share to lower-priced imports from other nations.

 

 

IPO GMP Today

Arabian Petroleum IPO GMP is not yet available.

 

Conclusion 

Arabian Petroleum operates within a growing segment of the automotive industry. The company is achieving robust profitability and enjoys a substantial global customer base. Investors are advised to consider all facets before applying for the issue.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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