Carraro India Lists At 8% Discount Over Issue Price

Shares of Carraro Ltd. debuted on the National Stock Exchange at Rs 651 apiece, at a discount of 7.53% over issue price of Rs 704. The stock listed on the BSE at Rs 660 per share, marking a discount of 6.25%.

Carraro's IPO, which closed on Dec. 24, was subscribed 1.12 times, with demand led by Qualified institutional buyers. The IPO comprised a pure offer for sale component worth Rs 1,250 crore.

The company raised Rs 375 crore from anchor investors a day before its IPO opened for bidding. The company allotted 53.26 lakh shares at Rs 704 apiece to 33 anchor investors. A total of 10 domestic mutual funds have applied through 18 schemes, the hospitality company said in an exchange filing on Thursday. They have collectively netted 51.47% of the anchor portion.

Axis Capital Ltd, BNP Paribas, and Nuvama Wealth Management Ltd. were the book-running lead managers to the issue.

The company is a technology-driven integrated supplier specialising in the development of complex engineering products and solutions for original equipment manufacturer customers.

As an independent tier-2 solution provider, the company focuses on axles, transmission systems, and gears for the agricultural tractor and construction vehicle industries in India. It offers end-to-end services across the value chain, with in-house product design and manufacturing capabilities for axles, transmission systems, gears, and other related components.

The company's promoter, Carraro S.p.A., is the parent company of the Carraro Group, a global leader in designing, manufacturing, and selling transmission systems (axles, transmissions, and drives) for agricultural and construction equipment, particularly for off-highway vehicles.

In the last financial year, 64.82% of the company's revenues came from domestic sales. Profit for financial year 2024 stood at Rs 60.6 crore, marking a 29.4% increase from Rs 47 crore in the previous year, despite modest topline growth, driven by strong operating performance.

For the fiscal year ending March 2024, Carraro recorded revenue of Rs 1,770.5 crore, a 4.4% growth compared to the previous year when it was Rs 1,695.12 crore.