Carraro India Secures SEBI Approval for Rs 1,812 Crore IPO

New Delhi, Dec 3 (KNN) Carraro India Limited, a leading Pune-based manufacturer of transmission systems for agricultural and construction equipment, has received regulatory approval from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO). 

The IPO, valued at Rs 1,812 crore, is structured as an offer for sale (OFS) by its parent company, Carraro International S.E.

The company, which filed its IPO papers on August 23, 2024, plans to list its shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). 

Shares are set to be issued with a face value of Rs 10 each. Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers, while Link Intime India Private Limited serves as the registrar.

Founded in 1997 as a subsidiary of Carraro S.p.A, Carraro India has carved out a significant niche in manufacturing axles and transmission systems for agricultural tractors and construction vehicles. 

The company commenced operations in 1999 and leverages proprietary intellectual property licensed from its parent group. 

It is recognised as a key supplier in India for high-performance components, including transmission systems for tractors up to 150 HP and four-wheel-drive capabilities.

Carraro India operates two state-of-the-art manufacturing plants in Pune. One facility focuses on driveline systems, which achieved an 81.07 per cent capacity utilisation in FY2024, while the gears plant operated at 89.94 per cent capacity utilisation. 

The facilities handle a wide range of advanced processes, such as casting, machining, assembly, prototyping, and heat treatment.

As of March 31, 2024, Carraro India served 38 manufacturers across India. Prominent clients in the agricultural sector include Mahindra and Mahindra, CNH, John Deere India, and Escorts Kubota, while its construction sector clientele features Bull Machines, Doosan, and Liugong.

This IPO marks a significant step for Carraro India, aligning with its mission to strengthen its market leadership in transmission systems and reinforce its standing in the Indian and global markets.

(KNN Bureau)