Carraro India IPO: Price Band, Financials, Key Dates, GMP And More — All You Need To Know

• Issue opens: Dec. 20.

• Issue closes: Dec. 24.

• Issue price: Rs 668–704.

• OFS size: Rs 1,250 crore.

• Lot size: Minimum 21 shares, and then in multiples thereof.

Since the IPO is a pure offer for sale, the company will not receive any portion of the proceeds from the offer.

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.

Carraro also produces a wide range of gears used in various sectors, including automotive, trucks, and agricultural and construction 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.

According to the red herring prospectus, the company's listed peers include Escorts Kubota (P/E of 43.21), Schaeffler India (P/E of 74.22), Sona BLW Precision Forgings (P/E of 76.93), Ramakrishna Forgings (P/E of 42.82), Happy Forgings (P/E of 47.08), and Action Construction Equipment (P/E of 50.56).

• Over 70% of the company's revenue in fiscal 2024 came from its top five customers, and 86.29% from its top 10 customers. A failure to retain these key clients or attract new ones could adversely affect business performance.

• Additionally, the company relies on other entities within the Carraro Group for various operations such as brand licencing, customer sourcing, procurement, R&D, and general support. Any disruptions in these relationships could have a significant negative effect on its business.