Carraro India’s ₹1,250 crore initial public offering (IPO) kicked off on Friday, recording a 9% subscription on its first day. The IPO, which is entirely an Offer for Sale (OFS), features no fresh issue, with proceeds set to benefit the parent company, Carraro International SE.
The manufacturer of transmission systems for off-highway vehicles and agricultural equipment received bids for 11,24,277 shares against the 1,30,98,803 shares on offer, as per NSE data.
Retail investors lead initial subscriptions
Retail Individual Investors (RIIs) led the charge with a 15% subscription on the first day. Meanwhile, the non-institutional investors’ category recorded 6% subscription. Notably, Carraro India secured ₹375 crore from anchor investors ahead of the public listing.
The IPO, priced between ₹668 and ₹704 per share, is set to close on December 24.
Carraro India’s role in agricultural and construction equipment
Founded in 1997, Carraro India is a subsidiary of Italy-based Carraro S.p.A. It started operations with transmission systems in 1999 and axles in 2000. The company specialises in providing tier-1 engineering solutions, focusing on axles and transmission systems for agricultural tractors and construction vehicles.
Operating out of two advanced manufacturing plants in Pune, Carraro India serves a mix of domestic and international Original Equipment Manufacturers (OEMs). Its notable clients include Mahindra & Mahindra, CNH, TAFE, John Deere, and Escorts Kubota.
Proceeds from Carraro India’s ₹1,250 cr IPO
Since the ₹1,250 crore IPO is entirely an OFS, proceeds will directly go to Carraro International SE. The company’s technological expertise and robust client base make it a key player in the agricultural and construction sectors.
Axis Capital, BNP Paribas, and Nuvama Wealth Management are the book-running lead managers for the issue.
