Carraro India all set to launch its first IPO, files IPO papers with SEBI

Carraro India IPO: Carraro India produces axles and transmission systems for farm tractors and building vehicles and is all set to release its first IPO soon.

The company plans to raise Rs 1,811.65 crore through public subscription. On August 23, the company filed IPO papers with markets regulator SEBI.

Carraro India IPO will consist of a public issue comprised of an offer-for-sale of Rs 1,811.65 crore by the promoter. Carraro International S E, a holding company for investment purposes and a subsidiary of Carraro S.p.A.

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The shareholder who is selling the share will receive the entire money, the company will not take any funds from the issue.

Carraro S.p.A. is based in Italy and is the parent company of the Carraro Group. The company produces transmission systems (axles, transmissions, and drives) for agricultural and building machinery for off-highway vehicles.

Carraro India was founded by in 1997 and is a competitor of listed peers such as Escorts Kubota, Schaeffler India, Sona BLW Precision Forgings, Ramakrishna Forgings, Happy Forgings, and Action Construction Equipment.

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The company produces backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders for agricultural tractors and construction vehicles.

The company currently manages two factories in Pune and supplies products to 38 manufacturers in India. The company generated 64.82% of revenues from domestic sales in the previous year.

In FY24, the company’s profits went up by 29.4% to Rs 60.6 crore against Rs 47 crore in a year ago period because of growth in strong operating performance.

The company revenue also increased by 4.4% to Rs 1,770.5 crore compared to the previous year. The company’s EBITDA rose by 27.2% to Rs 128.2 crore and the margin increased by 130 bps.

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