Carraro India Limited IPO to open on Dec 20: Price Band Set at ₹668-₹704 Per Share
Carraro India: Driving the Future of Axles and Transmissions in India
Price Band Fixed at ₹668-₹704, Offer Entirely by Parent Company Carraro International S.E.
Strengths and Risks Highlighted for Long-Term Investment Potential
- IPO Details
- Issue Size: ₹1,250 crore (entirely an offer for sale by Carraro International S.E.)
- Price Band: ₹668-₹704 per equity share
- Lot Size: Minimum 21 shares and multiples thereafter
- IPO Dates: Opens on December 20, 2024; Closes on December 24, 2024
- Allotment Date: December 26, 2024
- Listing Date: December 30, 2024
- Market Quota Allocation:
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
BILKULONLINE
Ahmedabad, Dec19: Carraro India Limited, a leader in axle and transmission systems manufacturing for agricultural and construction vehicles, is set to launch its Initial Public Offering (IPO) on December 20, 2024.
The price band has been fixed between ₹668 and ₹704 per equity share, with the IPO closing on December 24, 2024.
The IPO, valued at ₹1,250 crore, is entirely an offer for sale by Carraro International S.E., with no fresh issue component. Investors can bid for a minimum of 21 equity shares and in multiples thereof. Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar for the issue. The shares are expected to list on BSE and NSE on December 30, 2024.
Leadership and Governance
Carraro India Limited benefits from a robust leadership team with expertise in global manufacturing and strategic operations:
Ettore Francesco Sequi: Chairman and Independent Director
Tomaso Carraro: Vice Chairman and Non-Executive Director
Balaji Gopalan: Managing Director
Andrea Conchetto: Non-Executive Director and CEO of Carraro Group
Enrico Gomiero: Non-Executive Director
Davide Grossi: Whole-time Director and Chief Financial Officer
Sudhendra Mannikar: Whole-time Director and Chief Operating Officer
Uma Mandavgane: Independent Director
Kishore Saletore: Independent Director
Andrea Conchetto, the CEO of Carraro Group, holds a diploma in electrotechnical engineering from the University of Padua and has been with the Carraro Group since 2006. Davide Grossi, the CFO, and Balaji Gopalan, the Managing Director, play key roles in steering Carraro India’s financial performance and operational efficiency.
Strengths of Carraro India
Market Leadership: The company is a leading independent Tier-1 supplier of transmission systems and a major supplier of axles for tractors and construction vehicles in India.
Diverse Product Portfolio: Specializing in high-demand products like axles and transmission systems for agricultural tractors and construction equipment.
Advanced Manufacturing Facilities: Operating two state-of-the-art plants in Pune with high capacity utilization rates (81.07% for drivelines and 89.94% for gears in FY 2024).
Strong Client Relationships: A well-established client base of 38 manufacturers in India and 6 globally, with many partnerships lasting over 15 years.
Robust Financials: Revenue growth to ₹1,806.55 crore in FY 2024, with profits increasing to ₹62.56 crore from ₹48.46 crore in FY 2023.
Risks to Consider
Dependence on Parent Company: The company operates with intellectual property licensed from Carraro Group, making it reliant on the parent entity.
Cyclical Industry: Demand for agricultural and construction vehicles is influenced by macroeconomic factors, which could impact revenues.
No Fresh Issue: The IPO proceeds will not contribute to business expansion or debt reduction, as it is entirely an offer for sale.
Concentration of Revenue: A significant portion of revenue comes from a few major clients, posing a risk if these relationships are disrupted.
Disclaimer: Readers are advised to carefully study the IPO prospectus and consult their financial advisors before making any investment decisions.
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