Arete 22 Limited, an integrated precision aluminium mobility solutions company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) ahead of a proposed initial public offering.
The IPO will comprise a fresh issue of equity shares with a face value of ₹10 each, aggregating up to ₹440 crore. The company intends to use the net proceeds primarily to fund working capital requirements of ₹150 crore, repay or prepay borrowings amounting to ₹120 crore, and invest approximately ₹34.82 crore in plant and machinery at its existing manufacturing facilities. The remaining proceeds are earmarked for general corporate purposes.
Background and Operations
Arete22 Private Limited was incorporated on February 9, 2021, and acquired Unicast Autotech Private Limited in 2026. The company manufactures aluminium alloy wheels and precision aluminium high-pressure die-cast (HPDC) components for automotive original equipment manufacturers (OEMs), with its core business centred on alloy wheels for motorcycles and scooters.
Through its material subsidiary, Unicast, it also produces HPDC components used in engines, transmissions, powertrains and structural applications.
The company operates a business-to-business, build-to-print model, manufacturing wheels to the specifications provided by its two-wheeler OEM customers.
Manufacturing Footprint
Arete 22 runs two manufacturing facilities for aluminium alloy wheels — in Bilaspur, Haryana, with an installed capacity of 3.60 million wheels per annum, and in Kolar, Karnataka, with a capacity of 2.40 million wheels per annum.
Together, the facilities have an aggregate installed capacity of 6.00 million wheels annually across roughly 27,042 square metres of manufacturing area, positioned near established automotive clusters in northern and southern India.
Revenue Diversification
The company's revenue base has broadened across geographies. In Fiscal 2026, Karnataka was the largest contributor at ₹144.29 crore (26.82% of revenue), followed by Tamil Nadu at ₹119.47 crore (22.21%), Haryana at ₹110.85 crore (20.61%) and Uttarakhand at ₹91.60 crore (17.03%).
Andhra Pradesh and Rajasthan contributed ₹37.00 crore (6.88%) and ₹33.16 crore (6.16%), respectively. This is a marked shift from Fiscal 2024, when Tamil Nadu alone accounted for 76.85% of revenue.
Operational and Financial growth
Arete 22's operating metrics have strengthened over the past three fiscal years. The number of SKUs rose from 9 in Fiscal 2024 to 49 in Fiscal 2026, while wheels sold increased from 7.45 lakh units to 31.79 lakh units over the same period. Revenue per wheel rose from ₹1,457.58 to ₹1,671.46, and the order completion rate improved from 78.46% to 90.94%.
Financially, revenue from operations grew from ₹112.46 crore in Fiscal 2024 to ₹537.95 crore in Fiscal 2026, a CAGR of 118.70%. Profit after tax rose from ₹2.92 crore to ₹44.97 crore (CAGR of 292.50%), while EBITDA increased from ₹13.79 crore to ₹94.68 crore (CAGR of 161.98%). The company attributed this growth to higher production volumes and the scaling up of its manufacturing operations.
Unistone Capital Private Limited is the banker to the issue, and Bigshare Services Private Limited is the registrar.