Carraro India IPO price band: The Carraro India Limited IPO price band has been fixed in the range of ₹668 to ₹704 per equity share of the face value of Re 1. The Carraro India IPO date of subscription is scheduled for Friday, December 20, and will close on Tuesday, December 24. The allocation to anchor investors for the Carraro India IPO is scheduled to take place on Thursday, December 19.
The floor price and the cap price are 66.80 times and 70.40 times the face value of the equity shares respectively. The price to earnings ratio based on diluted EPS for fiscal 2024 at the upper end of the price band is 64 times as compared to the average industry peer group PE ratio of 55.80 times.
Carraro India IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Tentatively, Carraro India IPO basis of allotment of shares will be finalised on Thursday, December 26, and the company will initiate refunds on Friday, December 27, while the shares will be credited to the demat account of allottees on the same day following refund. Carraro India share price is likely to be listed on BSE and NSE on Monday, December 30.
The firm is an integrated supplier that leverages technology to create sophisticated engineering products and solutions for its original equipment manufacturer (OEM) clients. As an independent tier 11 solution provider, the company specializes in axles, transmission systems, and gears for the agricultural tractor and construction vehicle sectors in India. The company offers a comprehensive range of services as a solution provider for axles, transmission systems, gears, and other associated components, with the capability of in-house product design and manufacturing.
The promoter of the company, Carraro S.p.A., serves as the parent entity of the Carraro Group, which specializes in the design, manufacture, and sale of transmission systems (including axles, transmissions, and drives) primarily for agricultural and construction machinery utilized in off-highway vehicles. Additionally, it offers a broad selection of gears for various industries, ranging from automotive to trucks to agricultural and construction equipment. The Carraro brand, owned by Carraro S.p.A., is licensed to us through a licensing agreement established with Carraro S.p.A.
As per the red herring prospectus (RHP), the company's listed peers are Escorts Kubota (with a P/E of 43.21), Schaeffler India (with a P/E of 74.22), Sona BLW Precision Forgings (with a P/E of 76.93), Ramakrishna Forgings (with a P/E of 42.82), Happy Forgings (with a P/E of 47.08), and Action Construction Equipment (with a P/E of 50.56).
Carraro India has shown consistent growth in the past few years. In the financial year 2024, its revenue from operations rose by 4.44% to ₹1,770.45 crore, up from ₹1,695.12 crore the previous year.
Carraro International S.E., the parent company of Carraro India, will receive all the funds raised from the ₹1,250 crore issue, since the entire IPO is structured as an Offer For Sale (OFS).
Carraro India will not benefit from any of the proceeds generated by this issue.
The book running lead managers for the Carraro India IPO are Axis Bank Limited, BNP Paribas, and Nuvama Wealth Management Limited, while Link Intime India Private Ltd serves as the registrar for the offering.
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