Carraro India IPO presents an intriguing opportunity for investors, with a book-built issue valued at ₹1,250.0 crores. The offering is an offer for sale (OFS) of 1.78 crores shares, amounting to ₹1250.0 crores, allowing existing shareholders to partially exit their investment. This IPO provides a mix of growth capital and liquidity for stakeholders, making it a noteworthy event for market participants keen on exploring new investment opportunities.
The IPO is open for subscription from December 20, 2024, to December 24, 2024, offering investors a limited window to participate in this opportunity. The price band is set between ₹668 and ₹704 per share, providing flexibility for bidders within this range. Investors can apply in multiples of the lot size of 21 shares, making the minimum investment more accessible. With its structured bidding process and competitive pricing, this IPO is set to attract attention from retail and institutional investors alike.
Carraro India Limited IPO Details
| IPO Date | December 20, 2024 to December 24, 2024 | ||
| Listing Date | 30 December, 2024 | ||
| Face value | ₹10 per share | ||
| Price band | ₹668 to ₹704 per share | ||
| Lot size | 21 Shares | ||
| Total Issue Size | 1,77,55,680 shares (aggregating up to ₹1,250.00 Cr) | ||
| Offer for Sale | 21,00,000 shares of ₹10 (aggregating up to ₹82.11 Cr) | ||
| Issue Type | Book Built Issue IPO | ||
| Listing At | BSE, NSE | ||
Carraro India Limited IPO Lot Size calculator
| Application | Lots | Share | Amount |
| Retail (Min) | 1 | 21 | ₹14,784 |
| Retail (Max) | 13 | 273 | ₹1,92,192 |
| S-HNI (Min) | 14 | 294 | ₹2,06,976 |
| S-HNI (Max) | 67 | 1,407 | ₹9,90,528 |
| BS-HNI | 68 | 1,428 | ₹10,05,312 |
Carraro India Limited IPO Distribution
| Investor Category | Shares Offered | Maximum Allottees |
| Anchor Investor Shares Offered | 53,26,703 (30%) | N/A |
| QIB Shares Offered | 35,51,138 (20%) | N/A |
| NII (HNI) Shares Offered | 26,63,352 (15%) | |
| bNII > ₹10L | 17,75,568 (10%) | 6039 |
| sNII < ₹10L | 8,87,784 (5%) | 3,019 |
| Retail Shares Offered | 62,14,489 (35%) | 2,95,928 |
| Total Shares Offered | 1,77,55,682 (100%) |
About Carraro India Limited Company
Founded in 1997, Carraro India Ltd specializes in producing components ranging from small gears to fully assembled tractors.
The company focuses on designing, manufacturing, and selling transmission systems, including axles, transmissions, and drives, primarily for agricultural and construction off-highway vehicles. It also produces a variety of gears for sectors such as automotive, trucking, agriculture, and construction.
Carraro India operates two manufacturing facilities in Pune, Maharashtra. The driveline plant spans about 84,000 square meters, while the gear manufacturing plant covers approximately 78,000 square meters.
The driveline facility is equipped with advanced technologies for casting, machining, assembly, prototyping, testing, and painting. Meanwhile, the gear plant employs machining and heat treatment processes, including carburizing, induction hardening, and nitriding.
Carraro India Limited Company Finances
Amount in ₹ Crore
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Total Borrowing | 195.78 | 212.55 | 188.33 | 178.14 |
| Assets | 1,093.41 | 1,072.89 | 1,072.39 | 1,012.44 |
| Revenue | 922.74 | 1,806.55 | 1,733.3 | 1520.05 |
| Profit after tax | 49.73 | 62.56 | 48.46 | 22.43 |
| Net Worth | 419.44 | 369.82 | 337.38 | 292.49 |
Carraro India IPO – Buy or Not
The IPO of Carraro India Ltd has witnessed a subdued response from investors, with the public issue being subscribed 0.16 times in the retail category, 0 times in the QIB category, and 0.06 times in the NII category, accumulating a total of 38,838 applications. The lack of enthusiasm is further reflected in the grey market premium (GMP), which currently stands at 0%, signaling minimal to no listing gains for short-term investors.
Retail investors, who typically aim for quick profits through listing gains, may consider skipping this IPO due to the tepid demand and absence of immediate returns. However, it’s important to note that the company has strong fundamentals, with a robust business model and solid growth potential in the long term. For investors with a long-term horizon and the patience to ride out short-term market fluctuations, Carraro India Ltd could prove to be a valuable addition to their portfolio. While the immediate response might be underwhelming, the company’s solid foundation and market positioning make it an appealing option for those focused on sustained growth over time.
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