The ₹1,250 crore offer, entirely an offer for sale by Carraro International S.E., aims to attract investors with a focus on agricultural and construction vehicle components, supported by advanced manufacturing facilities in Pune.
18 Dec 2024 | 3285 Views | By Autocar Professional Bureau
Carraro India Limited has announced the price band for its upcoming Initial Public Offering (IPO) at ₹668 to ₹704 per equity share, with a face value of ₹10 each. The IPO is scheduled to open for subscription on Friday, December 20, 2024, and will close on Tuesday, December 24, 2024. ...
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Carraro India Limited has announced the price band for its upcoming Initial Public Offering (IPO) at ₹668 to ₹704 per equity share, with a face value of ₹10 each. The IPO is scheduled to open for subscription on Friday, December 20, 2024, and will close on Tuesday, December 24, 2024. Investors can place bids for a minimum of 21 equity shares and in multiples of 21 thereafter.
The IPO comprises a complete offer for sale worth ₹1,250 crore by Carraro International S.E., with no fresh equity issuance included.
Carraro India, a subsidiary of Carraro S.p.A, was established in 1997. The company commenced manufacturing operations in 1999, focusing on transmission systems, and expanded to axles in 2000. It specializes in engineering solutions for original equipment manufacturer (OEM) customers, serving as an independent Tier 1 supplier. Its products include axles and transmission systems for agricultural tractors and construction vehicles such as backhoe loaders, soil compactors, and cranes.
The company is recognized as a leading supplier of transmission systems for tractors up to 150 HP with four-wheel drive capabilities in India. It operates two manufacturing facilities in Pune—one dedicated to drivelines and the other to gears. Both plants feature advanced technologies for casting, machining, assembly, prototyping, and testing. For the fiscal year 2024, the capacity utilization of its driveline plant was 81.07%, while the gears manufacturing plant operated at 89.94%.
As of September 30, 2024, Carraro India had a customer base comprising 38 domestic manufacturers and six international clients, including long-standing relationships with major OEMs for over 15 years. The company sources components from 220 suppliers across eight Indian states and 58 international suppliers.
The offering will follow the book-building process. Under this structure, up to 50% of the shares are reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail individual investors.
Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are acting as the book-running lead managers for the IPO, while Link Intime India Private Limited serves as the registrar.