Carraro India sets price band of Rs 668-704 a share for its IPO

The issue will be a pure offer-for-sale of up to Rs 1,250 crore by Carraro International SE.

Auto parts maker Carraro India, a manufacturer of axles and transmission systems for agricultural tractors and construction vehicles, has set a price band of Rs 668-704 a share for its initial public offering that will open on December 20.

The anchor bidding will start on December 19 and the issue will close on December 24. Allotment and initiation of refunds will be done on December 26, credit of equity shares in demat accounts will be on December 27. The stock will list on exchanges on December 30.

The issue will be a pure offer-for-sale of up to Rs 1,250 crore by Carraro International SE.

Established in 1997, Carraro India that competes with listed peers like Escorts Kubota, Schaeffler India, Sona BLW Precision Forgings, Ramakrishna Forgings, Happy Forgings, and Action Construction Equipment, manufactures backhoe loaders, soil compactors, cranes, self-loading concrete mixers and small motor graders for agricultural tractors and construction vehicles. It also supplies gears, shafts and ring gears for industrial and automotive vehicles.

The company, which operates two manufacturing plants in Pune and supplied products to 38 manufacturers in India in FY24, generated 64.82 percent of revenues from domestic sales in the last financial year.

Profit for the fiscal year 2024 at Rs 60.6 crore grew by 29.4 percent over Rs 47 crore recorded in the previous year despite tepid growth in topline, backed by strong operating performance.

Carraro recorded revenue at Rs 1,770.5 crore for the year ended March 2024, growing 4.4 percent over the previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 27.2 percent on-year to Rs 128.2 crore with margin expanding by 130 bps to 7.2 percent in FY24.