Carraro India secures SEBI nod for Rs 1,812 crore IPO

Carraro India Ltd, a Pune-based manufacturer of transmission systems and axles for tractors and off-highway vehicles, received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its  Rs1,812 crore Initial Public Offering.

The IPO, filed on August 23, 2024, is a complete Offer for Sale (OFS) by its parent company, Carraro International S.E., with a face value of Rs 10 per share.

Carraro India, established in 1997 as a subsidiary of Carraro S.p.A, began manufacturing transmission systems in 1999 and axles in 2000. The company specialises in providing complex engineering solutions to original equipment manufacturers (OEMs), primarily in the agricultural and construction equipment sectors. Its portfolio includes axles, transmission systems, gears, shafts, and ring gears, serving as critical components for its customers’ products. The company’s offerings cater to vehicles such as backhoe loaders, soil compactors, cranes, motor graders, and self-loading concrete mixers.

With two modern manufacturing plants in Pune—one dedicated to drivelines and the other to gears—Carraro India leverages advanced technologies for casting, machining, assembly, testing, and heat treatment. As of fiscal 2024, the driveline plant had a capacity utilisation of 81.07%, while the gear plant operated at 89.94%.

Carraro India supplies to 38 manufacturers in India. Key clients in the agricultural tractor sector include industry leaders such as CNH, TAFE, Mahindra & Mahindra, John Deere India, Escorts Kubota, and International Tractors Limited. In the construction vehicle domain, it counts CNH, Bull Machines, Liugong, Manitou Equipment, and Doosan among its clients. CNH also remains a significant customer across various sectors.

The Carraro Group, its parent company, is recognised as a leading independent tier-1 supplier of transmission systems globally and holds a dominant position in the Indian market for tractors with up to 150 HP and four-wheel-drive capabilities. Carraro India initially leveraged intellectual property rights licensed from other Carraro Group entities and received design support through Carraro Technologies India Private Limited (CTIPL).

Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers for the IPO, with Link Intime India Private Limited acting as the registrar. The equity shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

This IPO marks a significant milestone for Carraro India, providing an opportunity for the company to expand its market presence and solidify its leadership in the competitive transmission systems and axles industry.