Have you been tracking recent developments in the manufacturing sector? If you’re interested in the stock market or companies specializing in agricultural and construction equipment, you may want to learn more about Carraro India Limited’s IPO.
With an issue size of ₹1,250 crores, this offering has attracted significant attention from market participants. It marks an important step for Carraro India, providing an opportunity to explore a company that plays a key role in transmission systems and gear manufacturing. Here’s a detailed breakdown of everything you need to know about this IPO.
Carraro IndiaIPO Details
The IPO bidding will begin today and end on December 24, 2024. Investors can expect the allotment process to be finalized by December 26, 2024, and the shares will be tentatively listed on December 30, 2024, on BSE & NSE.
| Offer Price | ₹668 to ₹704 per share |
| Face Value | ₹10 per share |
| Opening Date | 20 December 2024 |
| Closing Date | 24 December 2024 |
| Total Issue Size (in Shares) | 1,77,55,680 |
| Total Issue Size (in ₹) | ₹1,250 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 21 Shares |
| Listing at | BSE, NSE |
The issue is entirely an offer to sell 1.78 crore shares. The price band for the IPO is set at ₹668 to ₹704 per share, and investors must bid for a minimum of 21 shares. Retail investors must invest a minimum of ₹14,784, while sNII and bNII investors must invest ₹2,06,976 and ₹10,05,312, respectively, based on their lot sizes.
Allocation of Shares
The share allocation is structured as follows:
- QIB (Qualified Institutional Buyers): Not more than 50% of the net offer.
- Retail Investors: Not less than 35% of the net offer.
- NII (Non-Institutional Investors): Not less than 15% of the net offer.
Investors can bid for a minimum of 21 shares or multiples thereof. Based on the structure above., allocation will favor different investor categories.
Grey Market Premium (GMP) of Carraro India IPO Details
As of December 20, 2024, Carraro India IPO has a grey market premium (GMP) of nil. According to sources tracking the unofficial market, the unlisted shares are trading flat ahead of the IPO launch.
Objectives of the Carraro India IPO
The objectives of Carraro India’s IPO are as follows:
- The company will not receive any proceeds from the offer.
- After deducting offer-related expenses and relevant taxes, all proceeds will go to the promoter-selling shareholder.
Company Overview
Established in 1997, Carraro India Limited specializes in manufacturing components ranging from individual gears to complete tractors. The company designs, manufactures, and markets transmission systems—including axles, transmissions, and drives—primarily catering to agricultural and construction equipment for off-highway vehicles.
Additionally, Carraro India offers a diverse range of gear for sectors such as automotive, trucks, agricultural machinery, and construction vehicles.
The company operates two manufacturing plants in Pune, Maharashtra, covering approximately 84,000 square meters (driveline plant) and 78,000 square meters (gear manufacturing plant). These facilities boast advanced technologies, including casting, machining, assembly, prototyping, testing, and painting for drivelines and heat treatment processes like carburizing, induction hardening, and nitriding for gear manufacturing.
Financials
Carraro India has demonstrated consistent financial growth, with notable profitability and operational efficiency improvements. The company’s Profit After Tax (PAT) increased by 29% from FY23 to FY24, reflecting enhanced operational performance. Furthermore, Carraro India maintains a strong balance sheet characterized by controlled borrowings and a steadily increasing net worth.
SWOT Analysis of Carraro India Limited
| STRENGTHS | WEAKNESSES |
| Established presence in the agricultural and construction equipment sector. Advanced manufacturing technologies and robust infrastructure. Diversified product offerings catering to multiple sectors. | Dependence on specific market segments such as off-highway vehicles.Limited geographical footprint compared to global peers. |
| OPPORTUNITIES | THREATS |
| There is a rising demand for agricultural and construction equipment in emerging markets. There is potential for geographic expansion and diversification. Increasing focus on technological advancements in gear and transmission manufacturing. | There is Intense competition from both domestic and international players. It is susceptibility to economic cycles affecting the agricultural and construction sectors. Fluctuations in raw material prices impact production costs. |
Conclusion
The Carraro India Limited IPO provides an opportunity to engage with a company with a strong position in the agricultural and construction equipment manufacturing sector. Carraro India is a notable player with its advanced technologies and consistent financial growth.
However, potential investors should carefully evaluate the company’s SWOT analysis and financials to make informed decisions. This IPO marks a significant milestone for Carraro India and offers a glimpse into its future growth trajectory.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
