Carraro India, a company that manufactures tractors for agriculture and transmission systems for construction vehicles, is preparing to launch an IPO. For this, the company has submitted draft papers i.e. Draft Red Herring Prospectus (DRHP) with the market regulator. Through this initial public offering i.e. IPO, Carraro India wants to raise about Rs 1,812 crore.
This IPO of Carraro International SE will be completely an Offer for Sale i.e. OFS. That is, not a single fresh share will be issued in it. The IPO of Carraro International SE is coming through Offer for Sale. This IPO will be conducted through the book-building process. In which 50% of the OFS will be reserved for Qualified Institutional Buyers (QIB). Apart from this, 35% will be reserved for retail investors and the remaining 15% will be reserved for non-institutional investors (NII).
Carraro India, a subsidiary of Italy’s Carraro SpA, was formed in 1997. It started its manufacturing journey with the Matrix system in 1999 and XL in 2000. The company manufactures a wide range of parts for tractors and construction vehicles for agriculture, such as backhoe loaders, soil compactors, cranes, small motor backhoe loaders and self-loading concrete mixers. Apart from this, the company also manufactures and supplies gears, shafts, ring gears for many automotive vehicles. It has two manufacturing units in Pune, Maharashtra.
The company’s revenue has registered a huge growth from 1997 to 2024. Carraro India’s domestic sales increased to 64.82% in FY 2023-24, which was entirely exported from foreign markets in 1997. The company’s revenue increased by 4.44% to Rs 1,770.45 crore in FY 2024 as compared to Rs 1,695.12 crore in FY 2023. The company’s profit after tax has increased by 29.44%. The capacity utilization of the driveline plant was 81.07% in FY 24, while the capacity utilization of the gear plant was 89.94%.
The IPO will be managed by Axis Capital Limited, BNP Paribas and Nuvama Wealth Management Limited, with Link Intime India Private Limited acting as the registrar. The shares are expected to be listed on both BSE and NSE. Carraro India maintains long-term relationships with leading automotive companies such as CNH, TAFE and Mahindra & Mahindra, and has a strong network of suppliers in India and internationally.
