The IPO is a complete offer for sale (OFS) of up to Rs 1,811.65 crore by Carraro International S.E.
The offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional investors, and not less than 35% of the offer shall be available for allocation to retail individual investors.
Established in 1997, Carraro India, a subsidiary of Carraro S.p.A, began its manufacturing journey with transmission systems in 1999 and axles in 2000. The company started its operations using IP rights licensed from other entities within the Carraro Group and specializes in complex engineering products and solutions for original equipment manufacturer (OEM) customers. It serves as an independent tier-1 provider, concentrating on axles and transmission systems for agricultural tractors and construction vehicles.
The Carraro Group is one of the leading independent tier 1 suppliers of transmission systems and a key supplier of axles in the agricultural tractor and construction vehicle industries in India. It has also established itself as the market leader in providing transmission systems for tractors up to 150HP and four-wheel drive capabilities. In 2023, the company was the leading sole supplier in the non-captive segment of the agriculture tractors transmission market and the market leader with a 60-65% share of the non-captive construction vehicle transmission market.Carraro India operates two manufacturing plants in Pune: one for drivelines and one for gears.In FY24, the company supplied to 38 manufacturers in India and six internationally. Its key customers in the agricultural tractor sector include CNH, TAFE, Mahindra and Mahindra, John Deere India Private Limited, Escorts Kubota, Action Construction Limited, and International Tractors Limited. In the construction vehicle sector, it serves CNH, Bull Machines, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra and Mahindra, and Action Construction Limited.
Carraro India’s revenue from operations increased by 4.44% from Rs 1,695.12 crore in FY23 to Rs 1,770.45 crore in FY24, primarily due to an increase in revenue from the sale of products. Profit after tax increased by 29.44% from Rs 46.80 crore in FY23 to Rs 60.58 crore in FY24.
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 of the offer. The equity shares are proposed to be listed on BSE and NSE.
