What Carraro India IPO GMP Indicates Ahead Of Launch

The initial public offering of Carraro India Ltd. struggled to garner interest in the unlisted market as it gears for launch on Dec. 20. The grey market premium on the shares of the transmission system maker indicated a flat listing.

Carraro India IPO GMP stood at nil at 9:32 a.m. on Dec. 19, according to InvestorGain. Going by the current GMP trend, Carraro India shares were likely to make a market debut at the upper price band of Rs 704. However, the GMP trend may be reversed once the IPO opens for subscription.

Notably, GMP or grey market price is not an official price quote for the stock and is based on speculation.

Carraro India IPO is entirely an offer for sale of 1.78 crore shares worth Rs 1,250 crore. The subscription window for the issue will be open between Dec. 20 and Dec. 24.

Carraro India's IPO price band has been set at Rs 668 to Rs 704 per share. Retail investors can bid in the IPO with a minimum lot size of 21 shares totalling an investment of Rs 14,784 per application.

Share allotment in Carraro India IPO is expected to be finalised on Dec. 26, with listing proposed on the BSE and NSE scheduled on Dec. 30.

The company has appointed Axis Bank Ltd., BNP Paribas, Nuvama Wealth Management Ltd. as the book running lead managers for the issue. Link Intime India Pvt. is the IPO's registrar.

Carraro India IPO is entirely an offer-for-sale issue. Hence, the company will not receive any proceeds from the IPO and the money will go directly to shareholders offloading their stake in the issue.

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

It owns and operates two manufacturing plants in Maharashtra’s Pune.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.