This auto parts company wants to raise ₹1,811cr via IPO
Carraro India, a leading maker of axles and transmission systems for agricultural tractors and construction vehicles, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The firm aims to raise ₹1,811.65 crore through an initial public offering (IPO). This move was officially announced yesterday.
IPO proceeds to benefit Carraro International
The upcoming IPO will be entirely an offer-for-sale by the company's promoter, Carraro International S E. This entity is a holding firm under the Carraro S.p.A. group. As a result of this deal, all proceeds from the offering will go to the selling shareholder, with Carraro India not retaining any funds from the IPO.
Market presence and competition
Carraro India, established in 1997, competes with industry peers such as Escorts Kubota, Ramakrishna Forgings, Schaeffler India, Sona BLW Precision Forgings, Happy Forgings, and Action Construction Equipment. The company's product range includes backhoe loaders, self-loading concrete mixers, soil compactors cranes, and small motor graders catering to both the agricultural and construction sectors. Additionally it supplies gears shafts, and ring gears for industrial automotive vehicles.
Carraro India's financial performance and growth
Carraro India hass two manufacturing plants in Pune and supplied goods to 38 manufacturers across India in the fiscal year 2024. The firm recorded revenue of ₹1,770.5 crore for the year ending March 2024, marking a 4.4% rise from the previous fiscal year. Despite modest growth in revenue, Carraro India's profit for FY24 rose by 29.4%, reaching ₹60.6 crore compared to ₹47 crore in the previous year due to strong operating performance.
