Carraro India’s IPO for Rs 1,250 crore was subscribed by 9% on the first day of listing.
News Mania Desk / Piyal Chatterjee / 21st December 2024
Carraro India’s initial public offering was 9 percent subscribed on the first day of share sale on Friday. According to NSE statistics, the producer of transmission systems for off-highway vehicles and other agricultural and construction equipment received bids for 11,24,277 shares versus 1,30,98,803 shares on offer during its inaugural share sale. Retail Individual Investors (RIIs) accounted for 15% of subscriptions, while non-institutional investors received 6%. Carraro India Ltd said on Thursday that it has raised Rs 375 crore from anchor investors.
The offering, which has a price band of Rs 668-704 per share, will close on December 24.Carraro India’s IPO is entirely an offer for sale (OFS) of shares worth Rs 1,250 crore by Carraro International SE, with no fresh issue component, according to the red herring prospectus. Because the whole transaction is an OFS, all profits from the IPO will go straight to the selling shareholder, not the firm. Carraro India, a subsidiary of Carraro S.p.A., was founded in 1997 and began manufacturing transmission systems in 1999 and axles in 2000.
The firm began operations by licensing IP rights from other Carraro Group organizations, and it specializes in sophisticated engineering products and solutions for original equipment manufacturer (OEM) clients.It operates as an independent tier-1 provider, focusing on axles and transmission systems for agricultural tractors and construction equipment. Carraro India has two manufacturing factories in Pune, one for drivelines and another for gears. These factories use cutting-edge technology for casting, machining, assembling, prototyping, testing, painting, and heat treatment.
Its main customers are significant domestic and foreign OEMs. It exports to consumers in Asia, both directly and indirectly, as well as outside Asia, through Carraro Drive Tech Italia. Its primary agricultural tractor clients include CNH, TAFE, Mahindra and Mahindra, John Deere India Pvt Ltd, Escorts Kubota, Action Construction Ltd, and International Tractors Ltd.In the construction vehicle industry, it works with CNH, Bull Machines, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra & Mahindra, and Action Construction Ltd. The book-running lead managers for the issuance are Axis Capital Ltd, BNP Paribas, and Nuvama Wealth Management Ltd.
