On October 9, Arabian Petroleum witnessed a robust listing on the NSE SME platform, with shares opening at a significant 10.57% premium over the IPO price. The stock started trading at Rs 77.4, surpassing the issue price of Rs 70. Leading up to the listing, the grey market premium (GMP) had indicated a listing price of Rs 79 with a GMP of Rs 9.
The public offering garnered substantial interest, recording a subscription rate of 19.91 times. Retail investors played a significant role, subscribing 23.19 times, while high-net-worth individuals (HNIs) also showed strong participation with a subscription rate of 15.72 times. The IPO successfully raised Rs 20.24 crore, consisting entirely of fresh issue shares, with no offer-for-sale component.
The SME IPO had a fixed price of Rs 70 per share and was open for subscription from September 25 to September 27. Hem Securities served as the book-running lead manager, Purva Sharegistry India Pvt Ltd acted as the registrar, and Hem Finlease performed the role of the market maker. The company’s promoters, Hemant Dalsukhrai Mehta and Manan Hemant Mehta, held a pre-issue stake of 48.67%, which reduced to 35.75% post-issue.
Arabian Petroleum intends to utilize the proceeds from the IPO to meet working capital requirements and for general corporate purposes. The IPO received bids for 5.35 crore equity shares against the offer of 28.92 lakh shares.
Arabian Petroleum is a manufacturer of various lubricants, including specialty oils and coolants used in automobiles, industrial machinery, and appliances. The company operates through two product divisions: Automotive Lubricants – Arzol and Industrial Lubricants – SPL.