Carraro India Ltd
Carraro India Ltd, a prominent manufacturer of axles, transmission systems, and gears for agricultural tractors and construction vehicles, is set to launch its Initial Public Offering (IPO) on December 20, 2024. The company, a subsidiary of Italy’s Carraro International, has been operational in India since 1997, with two manufacturing plants in Pune, Maharashtra.
Company Overview
Established in 1997, Carraro India Ltd has positioned itself as a leading Tier 1 supplier in the Indian market, specializing in the design, manufacture, and sale of transmission systems, including axles, transmissions, and drives for off-highway vehicles. The company also produces a wide range of gears catering to sectors such as automotive, trucks, agricultural, and construction vehicles. Leveraging advanced technologies and a strong R&D foundation, Carraro India offers customized, high-quality solutions to its OEM customers.
IPO Timeline
- IPO Opening Date: December 20, 2024
- IPO Closing Date: December 24, 2024
- Anchor Investor Bidding Date: December 19, 2024
- Basis of Allotment: December 26, 2024
- Initiation of Refunds: December 27, 2024
- Credit of Shares to Demat Accounts: December 27, 2024
- Listing Date: December 30, 2024
Price Band and Lot Size
- Price Band: ₹668 to ₹704 per share
- Lot Size: 21 shares
- Minimum Investment: ₹14,784 (at the upper price band)
Financials
| Financial Metric | FY2022 (₹ crore) | FY2023 (₹ crore) | FY2024 (₹ crore) |
|---|---|---|---|
| Revenue from Operations | 1,481.56 | 1,695.12 | 1,770.45 |
| Profit After Tax | 20.77 | 46.80 | 60.58 |
Strengths
- Leading Tier 1 Supplier: Carraro India holds a significant market share in the Indian agricultural and construction equipment sectors.
- Advanced Manufacturing Facilities: The company operates technologically advanced plants with large production capacities.
- Strong R&D Capabilities: With proprietary IP rights, Carraro India focuses on innovation and developing future-ready products.
- Established Customer Base: The company maintains longstanding relationships with both domestic and international OEM customers.
Risks
- Customer Concentration: A substantial portion of revenue is derived from the top five and top ten customers, posing a risk if key customers are lost.
- Dependence on Parent Group: The company relies on the Carraro Group for brand licensing, customer sourcing, procurement, and R&D support.
- Supply Chain Risks: Dependence on a limited number of suppliers could impact operations if disruptions occur.
IPO Anchor Investors Details
Details regarding anchor investors will be available after the anchor investor bidding date on December 19, 2024.
IPO Promoter Holding
| Promoter Name | Pre-IPO Holding (%) | Post-IPO Holding (%) |
|---|---|---|
| Carraro International S.E. | 100.00 | To be updated |
IPO Grey Market Premium (GMP)
As of December 19, 2024, the Grey Market Premium for Carraro India IPO is not available, indicating that the shares are expected to list at the upper price band of ₹704 per share.
Final Thoughts
Carraro India Ltd’s IPO offers investors an opportunity to invest in a leading player within the Indian automotive and construction equipment sector. Potential investors should carefully assess the company’s financial performance, market position, and associated risks before making investment decisions.