Carraro India IPO, valued at ₹1,250 crore, is a book-built issue entirely comprising an offer for sale of 1.78 crore equity shares. The IPO opens for subscription on December 20, 2024, and closes on December 24, 2024. Investors eagerly anticipating this public offering should note its price band, set at ₹668 to ₹704 per share.
For retail investors, the minimum application size is 21 shares, requiring an investment of ₹14,784. Small Non-Institutional Investors (sNII) need to apply for at least 14 lots, costing ₹2,06,976, while Large Non-Institutional Investors (bNII) must invest in a minimum of 68 lots, amounting to ₹10,05,312.
The allotment date is scheduled for December 26, 2024, and the listing on BSE and NSE is anticipated to happen on December 30, 2024. Axis Bank Limited, BNP Paribas, and Nuvama Wealth Management Limited are managing the issue, with Link Intime India Private Ltd serving as the registrar.
To learn more about Carraro India IPO and its potential, reviewing the RHP is highly recommended for detailed insights into the company and its offerings.
Industry Outlook
- Sales of agricultural tractors and construction vehicles in India are projected to grow by 5.3% from CY2023 to CY2024, driven by factors such as farm mechanisation, infrastructure development, and favourable government policies. Agricultural tractors dominate with a 90% market share due to their critical role in farming, while construction vehicles hold the remaining 10%, supported by ₹10 lakh crore allocated to infrastructure in the 2023–24 budget.
- The ₹27 lakh crore investment under the National Infrastructure Pipeline (NIP) by FY2025 and ₹7 lakh crore worth of road and highway projects over the next 2–3 years are expected to significantly increase the demand for construction vehicles.
Carraro India Limited IPO Objectives
Carraro India Limited will not receive any proceeds from the offer; all proceeds go to the promoter selling shareholders after covering the offer related expenses and taxes.
About Carraro India Limited
Carraro India Limited is a technology-driven supplier specialising in axles, transmission systems, and gears for the agricultural tractor and construction vehicle industries in India. The company, established in 1997, caters to original equipment manufacturers (OEMs) and supports the entire value chain, offering in-house design and manufacturing capabilities.
With 27 years of presence in India, it has built a strong network of customers and suppliers, both locally and internationally. The company operates as an independent Tier II solution provider, delivering mission-critical products that are integral to its customers' final offerings, including axles and transmission systems for vehicles like backhoe loaders, cranes, and compactors.
Carraro India Limited also manufactures gears, shafts, and ring gears for industrial and automotive markets. Leveraging the expertise of its parent company, Carraro S.p.A., the company benefits from advanced research and development capabilities. The Pune R&D centre, established in 2006, focuses on designing and developing components for agricultural and construction vehicles. In 2023, Carraro S.p.A. transferred exclusive intellectual property rights for certain products customised for the Indian market to the company.
With a strategic acquisition of Carraro Technologies India Private Limited (CTIPL) in 2024, the company strengthened its R&D capabilities and expanded its engineering expertise.
How To Check the Allotment Status of the Carraro India IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for a Carraro India IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Carraro India IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Carraro India Limited
Registered office: B2/2 MIDC, Ranjangaon, Pune 412 220, Maharashtra, India
Email: company_secretary@carraroindia.com
Phone: +91 2138 662666
Carraro India IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the offer |
|
Retail Shares Offered |
Not less than 35% of the offer |
|
NII (HNI) Shares Offered |
Not less than 15% of the offer |
Carraro India IPO Lot Size Details
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
21 |
₹14,784 |
|
Retail (Max) |
13 |
273 |
₹1,92,192 |
|
S-HNI (Min) |
14 |
294 |
₹2,06,976 |
|
S-HNI (Max) |
67 |
1,407 |
₹9,90,528 |
|
B-HNI (Min) |
68 |
1,428 |
₹10,05,312 |
Carraro India IPO Promoter Holding
The company's Promoters are Tomaso Carraro, Enrico Carraro, Carraro S.p.A and Carraro International S.E.
|
Shareholding Pre Issue |
100.00% |
|
Shareholding Post Issue |
68.77% |
Key Performance Indicators for Carraro India IPO
As of March 31, 2024, the KPIs of Carraro India:
|
KPI |
Values |
|
ROE |
17.69% |
|
ROCE |
19.35% |
|
Debt/Equity |
0.58 |
|
RoNW |
16.92% |
|
PAT Margin |
3.50 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
P/E (x) |
63.97 |
40.24 |
|
EPS (₹) |
11.00 |
17.50 |
Note: The Pre-IPO EPS is based on the company’s shareholding as of the RHP date and earnings for the financial year ending March 31, 2024. The Post-Issue EPS is calculated using post-issue shareholding and annualised earnings for the period ending September 30, 2024, as stated in the RHP.
Carraro India IPO Prospectus
Carraro India IPO Registrar and Lead Managers
Carraro India IPO Lead Managers
- Axis Bank Limited
- Bnp Paribas
- Nuvama Wealth Management Limited
Registrar for Carraro India IPO
Link Intime India Private Limited
- Contact Number: +91-22-4918 6270
- Email Address: carraro.ipo@linkintime.co.in
Website: Carraro India IPO Registrar
IPO FinancialsFinancial Performance of Carraro India Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operations (in ₹ million) | 17,889.65 | 17,131.45 |
| Profit After Tax(in ₹ million) | 625.63 | 484.59 |
| Total Borrowings (in ₹ million) | 2,125.46 | 1,883.30 |
| Return on Net Worth (%) | 16.92 | 14.36 |
| Earnings Per Share (“EPS”) (₹) | 11.01 | 8.52 |
| Net Worth (in ₹ million) | 3,698.19 | 3,373.76 |
| Return On Capital Employed (%) | 19.35 | 16.30 |
Know before investing
Strengths
8Carraro India Limited is a leading supplier of axles and transmission systems.
Strong customer base with longstanding relationships in agricultural and construction markets.
Proprietary R&D capabilities drive innovation in mission-critical driveline components.
Carraro India’s two plants in Pune offer advanced manufacturing capacities.
Stable management team with over 11.3 years of collective experience.
Expansion strategy focused on securing market position and increasing market share.
Future-ready solutions targeting electric vehicle adoption in tractor and construction markets.
Plans to enhance production and localisation efforts for cost optimisation and efficiency.
Risks
8Heavy reliance on top customers, contributing 69.55% of revenue.
Dependence on Carraro Group for sourcing, procurement, and operations support.
Related party transactions may involve significant capital with uncertain returns.
Seasonal agricultural tractor business leads to potential fluctuations in revenue.
Competition within the Carraro Group could lead to conflicts of interest.
Vulnerability to market conditions in the tractor and construction vehicle sectors.
Lower EBITDA and PAT margins compared to industry peers in 2024.
Carraro India Limited Peer Details
| Company Name | EPS (Basic) | NAV (per share) (₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Carraro India Limited | 11 | 11 | 65.05 | 16.92 |
| Escorts Kubota Limited | 96.8 | 96.64 | 830.45 | 11.43 |
| Schaeffler India Ltd | 57.5 | 57.5 | 307.44 | 18.71 |
| Sona BLW Precision Forgings Limited | 8.83 | 8.83 | 47.75 | 18.49 |
| Happy Forgings Limited | 26.78 | 26.75 | 171.17 | 15.07 |
| Action Construction Equipment Ltd. | 27.56 | 27.56 | 307.44 | 26.69 |
| Ramakrishna Forgings Limited | 20.27 | 20.09 | 148.48 | 12.72 |
