Arete 22 Limited
DRHP · filed 05 Oct 2026
This is a draft. SEBI has not cleared it, there is no final price yet, and it may never become an IPO.
Arete 22 Limited is a company that manufactures aluminium alloy wheels for OEM customers. The company reported a revenue of Rs 37.95 crore and a profit after tax of Rs 44.97 crore in the latest fiscal year, with a return on equity of 52.97%. The IPO faces significant risks due to a high concentration of revenue from a small group of key customers, who contributed over 96% of revenue in recent years, and the lack of long-term volume commitments from these clients.
What stands out
High leverage. Debt-to-equity of 3.10x.
Shrinking revenue. Restated revenue CAGR of -41.9%.
Large related-party dealings. Related-party transactions are 16.1% of revenue.
Risk factor. A significant portion of revenue is derived from a concentrated group of key customers, with top five customers contributing 98.77% of revenue in Fiscal 2026, 96.84% in Fiscal 2025, and 96.62% in Fiscal 2024.
Risk factor. Revenue is significantly dependent on repeat orders from existing customers, with repeat customers contributing 91.79% of revenue in Fiscal 2026, 84.04% in Fiscal 2025, and 96.62% in Fiscal 2024.
Risk factor. The Company does not have firm, long-term volume commitments with its OEM customers, and customers are not contractually obligated to purchase any minimum quantity of aluminium alloy wheels.
Risk factor. Customers may modify, reschedule, cancel orders, or terminate supply arrangements without compensating the Company for lost profits, unabsorbed overheads, capital investments, tooling costs or other related expenditures.
Healthy return on equity. ROE of 53.0%.
How the offer is structured
- Funding the working capital requirements of our Company₹150 Cr
- Repayment/prepayment, in full or in part, of certain debts availed by our Company₹120 Cr
- Purchase of plant and machinery for our existing manufacturing facilities₹34.8 Cr
- General corporate purposes
Restated financials
Revenue
₹38.0 Cr
Latest fiscal year
Profit after tax
₹45.0 Cr
Revenue CAGR
-41.9%
Return on equity
53.0%
Debt / equity
3.10
PAT CAGR
292.5%
| Fiscal year | Revenue | EBITDA | PAT | Net worth |
|---|---|---|---|---|
| 2024 | ₹112 Cr | ₹2.9 Cr | ₹17.3 Cr | |
| 2025 | ₹212 Cr | ₹12.4 Cr | ₹34.7 Cr | |
| 2026 | ₹37.9 Cr | ₹45.0 Cr | ₹84.9 Cr |
Promoters, litigation & related parties
Promoter (pre)
86.7%
Related-party
16.1%
Share of revenue
Proceedings
354
Risks the company discloses
A significant portion of revenue is derived from a concentrated group of key customers, with top five customers contributing 98.77% of revenue in Fiscal 2026, 96.84% in Fiscal 2025, and 96.62% in Fiscal 2024.(Customer Concentration)
Revenue is significantly dependent on repeat orders from existing customers, with repeat customers contributing 91.79% of revenue in Fiscal 2026, 84.04% in Fiscal 2025, and 96.62% in Fiscal 2024.(Customer Concentration)
The Company does not have firm, long-term volume commitments with its OEM customers, and customers are not contractually obligated to purchase any minimum quantity of aluminium alloy wheels.(Customer Concentration)
Customers may modify, reschedule, cancel orders, or terminate supply arrangements without compensating the Company for lost profits, unabsorbed overheads, capital investments, tooling costs or other related expenditures.(Customer Concentration)
Wheel designs and associated tooling are customised for specific vehicle models and may not be readily transferable to other customers or platforms, resulting in under-recovery of development, capital, tooling and launch costs if a model is discontinued.(Customer Concentration)
The Company is required to maintain readiness to meet customers' variable requirements, necessitating advance investments in tooling, manufacturing capacity and working capital based on non-binding forecasts.(Customer Concentration)
The Company's revenue is significantly dependent on the production volumes and schedules of OEM customers, which are determined by factors over which the Company has no control, such as retail demand, dealer inventory levels, model launches and phase-outs.(Customer Concentration)
Customers may change sourcing strategies, consolidate vendor bases, or adopt dual or multi-vendor sourcing arrangements, which may reduce the Company's share of business with a customer even if the relationship continues.(Customer Concentration)
How this document reads, dimension by dimension
Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.