Carraro India Gets SEBI Nod To Raise Rs 1,812 Cr Via An Initial Public Offering (IPO)

The Securities and Exchange Board of India (SEBI) has given Pune-based Carraro India Limited, a manufacturer of agricultural and construction equipment as well as gearbox systems for tractors and off-highway vehicles, its final authorization to raise Rs 1812 crore through an IPO. The IPO is a complete offer for sale (OFS) of up to Rs 1,811.65 crore by Carraro International S.E., with a face value of Rs 10 per share.

On August 23, 2024, the company submitted its IPO papers to Sebi. The offer's registrar is Link Intime India Private Limited, while the book-running lead managers are Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited. It is proposed that the equity shares of the company be listed on the NSE and BSE.

The firm served 38 Indian manufacturers as of March 31, 2024. CNH, TAFE, Mahindra & Mahindra, John Deere India Private Limited, Escorts Kubota, Action Construction Limited, and International Tractors Limited are some of its major customers in the agricultural tractor industry. It provides services to CNH, Bull Machines, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra & Mahindra, and Action Construction Limited in the construction vehicle industry. CNH is also a significant client in other industries.

A subsidiary of Carraro S.p.A., Carraro India was founded in 1997 and started producing axles in 2000 and gearbox systems in 1999. As a stand-alone tier 1 supplier, it focuses on axles and gearbox systems for construction and agricultural tractors. In India, the Carraro Group is a major supplier of axles for the construction and agricultural tractor sectors, as well as one of the top independent tier 1 providers of gearbox systems. It has also made a name for itself as the industry leader in four-wheel drive and gearbox systems for tractors with up to 150 horsepower.

The company's products, which include gears, shafts, ring gears for industrial and automotive vehicles, and different off-highway vehicles, are essential parts of its clients' end-products. Its product line comprises axles and transmission systems for a range of agricultural tractors and construction equipment, including backhoe loaders, dirt compactors, cranes, self-loading concrete mixers, and small motor graders.

In Pune, Carraro India has two manufacturing facilities: one for gears and one for drivelines. Advanced technologies for casting, machining, assembling, testing, prototyping, painting, and heat treatment are available at these factories. In fiscal 2024, the Driveline manufacturing plant's capacity utilisation was 81.07%, while the Gears manufacturing plant's was 89.94%. The firm had a net profit of Rs 60.6 crore in fiscal 2024, which was 24.7% more than the Rs 46.8 crore it made the year before. In fiscal 2023, the total revenue climbed from Rs 1,695.1 crore to Rs 1,770.4 crore in 2024.