Carraro India, a Pune-based company specializing in transmission systems for off-highway vehicles, has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at Rs 1,812 crore.
The IPO will be a complete offer for sale (OFS) by Carraro International S.E., with shares offered at a face value of Rs 10 each. The offering will be conducted through a book-building process, with allocations set at up to 50% for qualified institutional buyers, at least 15% for non-institutional investors, and at least 35% for retail investors.
Carraro India, a subsidiary of Italy’s Carraro S.p.A., was founded in 1997 and began its manufacturing operations in 1999. The company focuses on producing transmission systems and axles for agricultural and construction vehicles, including tractors and backhoe loaders. Over the years, the company has significantly expanded its domestic market presence, with domestic sales contributing 64.82% of its revenue in FY24, up from nearly full reliance on exports in its early years.
Carraro India operates two manufacturing facilities in Pune, dedicated to drivelines and gears. In FY24, the company’s revenue rose by 4.44% to Rs 1,770.45 crore from Rs 1,695.12 crore in FY23, while profit after tax saw a 29.44% increase. The driveline plant’s capacity utilization was 81.07%, and the gears plant’s utilization was 89.94% during this period.
The IPO is being managed by Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited, with Link Intime India Private Limited serving as the registrar. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Carraro India has established strong, long-term relationships with leading OEMs such as CNH, TAFE, and Mahindra & Mahindra and maintains a robust network of suppliers both within India and internationally.
