Arete 22 Limited Files DRHP for NSE Emerge IPO; Fresh Issue of 56.5 Lakh Shares Planned

Visakhapatnam, September 30, 2025 — Arete 22 Limited, a two-wheeler aluminum alloy wheels major manufacturer, has submitted its draft red herring prospectus (DRHP) for an initial public offering (IPO) on the NSE Emerge platform. The company proposes to raise funds from a fresh issue of up to 56.5 lakh equity shares of face value of ₹10 each. The IPO comprises no offer-for-sale component. Horizon Management Pvt Ltd is the exclusive Book Running Lead Manager, and MAS Services Ltd will be the registrar.

Fund Utilisation

The fund proceeds will be used primarily towards repayment or prepayment of borrowings of ₹6,000 lakh. In addition, ₹3,000 lakh will be used for working capital, and at the most ₹1,000 lakh, or 15% of the gross proceeds, whichever is lower, will be kept aside for general corporate purposes.

Financial Performance

FY25 saw a dramatic improvement with revenue almost doubling to ₹21,239.27 lakh and profit after tax increasing to ₹1,898.69 lakh. Net worth increased to ₹3,154.21 lakh, while total borrowings also rose to ₹21,499.94 lakh.

Outlook

Arete 22 enjoys a focused customer, wherein three customers have contributed over 97% of the FY25 top line. There are risks associated with the execution of the new Bilaspur unit; however, the IPO proceeds will help in deleveraging as well as financing expansion, thereby creating growth opportunities linked to the growing demand for two-wheelers.

Arete 22 is a Visakhapatnam-based company that manufactures aluminum alloy wheels for recognized two-wheeler OEMs, including TVS Motor, Hero MotoCorp, and Bajaj Auto. There are manufacturing facilities in Kolar (Karnataka) and Bilaspur, Gurugram (Haryana), and there is also a warehouse in Hosur, Tamil Nadu. The company holds IATF 16949:2016 and ISO 9001:2015 certifications, offering comprehensive end-to-end manufacturing capabilities that span from design and casting through machining, finishing, and testing.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/Registration_29092025153458_DRHPARETE22Filingversion.pdf

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