Bankers Pull Through Carrao India IPO

Retail, HNI subscribers show little interest
MUMBAI, Dec 24 (The CONNECT) – The Initial Public Offering of Technology-driven engineering solutions provider Carraro India Limited was subscribed 1.12 times on the final day of bidding.
The issue received bids of 1,46,18,226 shares against the offered 1,30,98,803 equity shares, at a price band of ₹668-704, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 0.71 times and 0.60 times respectively, whereas Qualified Institutional Buyer Portion were subscribed to 2.21 Times.
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 issue.
Company Information
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 company’s products are crucial components of its customers’ final products, including various off-highway vehicles, gears, shafts, and ring gears for industrial and automotive vehicles. Its product offering includes axles and transmission systems for a range of agricultural tractors and construction vehicles, including backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders.
The Carraro Group is one of the leading independent tier 1 suppliers of transmissions systems and a key supplier of axles in the agricultural tractor and construction vehicle industries in India. Additionally, it has established itself as the market leader in providing transmission systems for tractors up to 150HP and four-wheel drive capabilities.
Carraro India operates two manufacturing plants in Pune: one for drivelines and one for gears. These plants are equipped with advanced technologies for casting, machining, assembly, prototyping, testing, painting, and heat treatment. Capacity utilization of Driveline manufacturing plant for fiscal 2024 stood at 81.07% and for Gears manufacturing plant it was 89.94%.
As of September 30, 2024, the company supplied to 38 manufacturers in India and six internationally. Its key customers include large domestic and international OEMs, with long-term relationships lasting at least 15 years. Carraro India has developed extensive expertise in the agricultural tractor and construction vehicle industry in India and maintains a network of 220 suppliers across eight states in India and 58 international suppliers.