Carraro India Sets Price Band For Downsized Rs 1,250-Crore IPO

Carraro India Ltd. has set a price band of Rs 668 to 704 per share for its initial public offering which is set to open on Friday, Dec. 20 and closes on Tuesday, Dec. 24.

The IPO is a pure offer for sale and has been downsized to Rs 1,250 crore from Rs 1,811.652 crore that was announced in its red herring prospectus in Aug. 

The founder, Carraro International SE, is the promoter selling shareholder at a face value of Rs 10 per share. The net proceed will be entirely received by the promoter selling the stake after deducting their proportion of the offer expenses and the required taxes.

The bid lot size will be a minimum of 21 equity shares and in multiples thereafter. Qualified Institutional Buyers will be allocated not more than 50% of the offer, non-institutional investors will be allocated not less than 15% and retail investors can bid for 35% of the offer. 

The offer will open for anchor investors on Thursday, Dec. 20. The book running lead managers are Axis Capital Ltd., BNP Paribas and Nuvama Wealth Management Ltd. , whereas Link Intime India Pvt. is the registrar.

Post the IPO, the company will be listed on India's two main exchanges—the NSE and the BSE.

Carraro India is an independent tier 1 solution provider of axles, transmission systems and gears for the agricultural tractor and construction vehicle industries in the country.