Carraro India IPO listing: Shares make weak debut, lists at 7.5% discount to IPO price; check details

Transmission system maker Carraro India made a weak debut on the stock exchanges on Monday, December 30, with its shares listing at a discount of over 7.5% on NSE.

According to the stock exchange data, shares of the company started trading at ₹651 per share on the NSE, down by 7.53% over the issue price of ₹704 per share.

More than 14.3 lakh equity shares changed hands on the NSE, and the traded value stood at ₹94.1 crore. The market valuation stood at ₹ 3,686 crore.

On the BSE, the stock was listed at ₹660 per share, reflecting a loss of 6.25% over the issue price.

Carraro India raises ₹1,250 crore through IPO

Carraro India, which manufactures transmission systems, raised ₹1,250 crore through its initial public offering, which was open for subscription from December 20 to December 24. The price band was fixed at ₹668 to ₹704 per share for the IPO, which was an entirely OFS of 1.77 crore equity shares.

Carraro India IPO closed with an oversubscription of 1.12 times despite a lacklustre response from retail and non-institutional investors.

The qualified institutional buyers (QIBs) portion was booked 2.21 times. The retail investors’ quota was booked at 71%, while the non-institutional investors’ quota was booked at 60%.

Carraro India had earlier garnered ₹375 crore from anchor investors a day ahead of the launch of the bidding by public investors. The company allocated 53.26 lakh shares to 33 fund schemes at a price of ₹704 apiece - the upper limit of the price band.

Carraro India IPO objective

Carraro India Ltd's public offer was an offer-for-sale issue of 1.77 crore shares by selling shareholders. Hence, all the IPO proceeds will go to the selling shareholders.

The company expects that listing the equity shares will enhance its visibility and brand and provide liquidity to its existing shareholders.

Carraro India is a technology-driven integrated supplier that develops complex engineering products and solutions for original equipment manufacturer (OEM) customers. The promoter entity Carraro S.p.A owns the Carraro brand.

Incorporated in 1997, the company manufactures and sells transmission systems, such as axles, transmissions, and drives, for agricultural and construction equipment and off-highway vehicles.

It is a leading supplier of gears mainly used in industrial and automotive markets, spare parts, which are primarily loose components of agricultural tractors and construction vehicles, and other products, which are non-core parts of these vehicles.

The company’s two manufacturing units are located in Pune, Maharashtra. It also has an R&D Centre, Carraro Technologies India, in Pune.