Carraro India IPO: Local arm of Italy's Carraro Group looks to raise ₹1,812 crore, files draft papers

Carraro India, the local arm of Italy's Carraro Group, has filed the draft papers with the Securities and Exchange Board of India (SEBI) to float an initial public offering (IPO) for raising up to ₹1,812 crore.

The draft red herring prospectus (DRHP) was submitted before the capital market regulator on Friday, August 28. The public issue will not have any fresh issuance of shares, and will entail only an offer-for-sale (OFS) component.

This means that the entire proceeds from the IPO will go towards the selling shareholders of the company.

Axis Capital, BNP Paribas, and Nuvama Wealth Management are the book-running lead managers for the issue, whereas Link Inktime is the registrar.

Notably, the Carraro Group is a global manufacturer of agricultural and construction equipment for off-highway vehicles, and transmission systems which includes axles and drives.

The company's Indian arm, established in 1977, competes with the likes of Ramakrishna Forgings, Schaeffler India, Escorts Kubota, Sona BLW Precision Forgings, Action Construction Equipment, and Happy Forgings.

In the DRHP, Carraro India noted that it operates two manufacturing plants in Pune. Nearly 65% of the revenue was clocked from domestic sales. As of March 31, 2024, it supplied products to 38 manufacturers in India.

The overall revenue from operations in fiscal year 2023-24 (FY24) stood at ₹1,770.4 crore, higher by 4% as compared to ₹1,6951.1 crore in FY23.

The company posted a profit of ₹60.5 crore in FY24, marking a jump of about 29% as compared to ₹46.8 crore in FY23.