Carraro India IPO Day 1: Mainboard issue booked only 9%, check subscription, price band, offer size and more

The initial public offering (IPO) of Carraro India Ltd opened to weak demand on Friday, December 20. The mainboard issue was booked only 9% on the first day of bidding.

The ₹1,250-crore book-building issue is open for subscription till December 24.

The IPO received bids for more than 11.24 lakh shares against 1.31 crore shares on offer, leading to an overall subscription of 9%. The retail portion of the IPO was booked 15% with bids for over 9.6 lakh shares against 65.49 lakh shares reserved for the category. The Non-Institutional Investors (NIIs) booked only 6% of their allocation of 28.06 lakh shares. The NIIs applied for only 1.63 lakh shares. In the Qualified Institutional Buyers (QIBs) segment, bids were received only for 294 shares against the allocation of 37.42 lakh shares.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Carraro India Ltd.

Carraro India raise ₹375 crore from anchor investors

Ahead of the launch of its IPO, Carraro India raised a total of ₹375 crore from anchor investors. Its anchor bid date was December 19, 2024.

The company allotted 53.26 lakh equity shares to a total of 33 anchor investors at an allocation price of ₹704 apiece.

Aditya Birla Sun Life Trustee Pvt. Ltd, along with Amundi Funds New Silk Road, Manulife Global Fund, and HSBC Small Cap Fund, each received the highest allocation of 6.13%. UTI Transportation and Logistics Fund, Motilal Oswal Small Cap Fund, and Sundaram Mutual Fund, too received a 6.13% allocation of the anchor portion individually.

Carraro India IPO price band and other details

The agricultural and construction equipment manufacturer’s initial public offering comprises entirely an offer-for-sale (OFS) of 1.77 crore shares. The issue does not include any fresh issue component.

The company has fixed the IPO price band at ₹668 to ₹704 per share. The minimum lot size is 21 shares, for the retail investors, aggregating to a minimum investment of ₹14,784.

Axis Bank Limited, BNP Paribas and Nuvama Wealth Management Limited are the book-running lead managers of the Carraro India IPO, while Link Intime India Private Ltd is the registrar for the issue.

Carraro India IPO key dates

The IPO allotment status is expected to be finalised on Friday, December 20, 2024. Refunds will be issued on Thursday, December 26, 2024, and the allottees will also receive shares in the Demat accounts on the same day.

The company has proposed to list shares on BSE and NSE on Monday, December 30.

About Carraro India and use of IPO proceeds

Carraro India is engaged in the manufacture and sale of transmission systems (axles, transmissions and drives), mainly for agricultural and construction equipment for off-highway vehicles.

Since the IPO is purely structured as an Offer for Sale (OFS), the company will not receive any of the proceeds raised from the maiden issue.

The company’s revenue stood at ₹922.74 crore as of September 30, 2024, while the net profit stood at ₹49.73 crore.

The company’s revenue in FY24 stood at ₹1,806.55 crore and its net profit was ₹62.56 crore during the period under review.