Carraro India IPO: SEBI Nod Issued For Rs 1,812-Crore Issue

Carraro India Ltd. received Securities and Exchange Board of India's approval on Monday to raise Rs 1,811.65 crore through its initial public offering.

The IPO comprises only an offer-for-sale component, with no fresh issuance of shares. Promoter entity Carraro International S.E. was listed as the sole selling shareholder in the draft red herring prospectus.

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.

Notably, Carraro India filed the papers for its IPO with the capital markets regulator on Aug. 23, 2024. The transmission system manufacturer will benefit from the listing of the equity shares as it will enhance the company's visibility and brand along with providing liquidity to its present shareholders.

Axis Capital Ltd., BNP Paribas and Nuvama Wealth Management Ltd. are the book-running lead managers for the issue, whereas Link Intime India Pvt. is the registrar.

The company will determine the price band for the offer after consulting with the book running lead managers.

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

Carraro India, a subsidiary of Carraro S.p.A, is engaged in manufacturing transmissions systems. The company's products comprise of components such as gears, shafts, and ring gears for industrial and automotive vehicles.

Carraro India has supplied to 38 clients in India, including Mahindra and Mahindra Ltd., Escorts Kubota Ltd., and Action Construction Ltd. among others.

In fiscal 2024, the company logged a net profit of Rs 60.6 crore, 24.7% higher as compared to Rs 46.8 crore in the previous year. The topline increased to Rs 1,770.4 crore from Rs 1,695.1 crore in fiscal 2023.