Carraro India shares make disappointing stock market debut, list at 7.5% discount

Carraro India shares make disappointing stock market debut, list at 7.5% discount

The shares of Carraro India Ltd made a lacklustre stock market debut on December 30 by listing 7.5% below the IPO price.

The shares got listed at Rs 651 apiece on NSE.

The IPO sailed through on the third and final day of share sale on December 24, led by qualified institutional buyers (QIBs).

The category for retail individual investors (RIIs) got subscribed 71% while the quota for non-institutional investors received 60% subscription. However, the QIB portion got 2.2 times subscription.

Carraro India's IPO is completely an offer for sale (OFS) of shares worth Rs 1,250 crore by Carraro International SE, with no fresh issue component, according to the red herring prospectus.

Since the entire issue is an OFS, all proceeds from the IPO will go directly to the selling shareholder, rather than the company.

Founded in 1997, Carraro India, a subsidiary of Carraro S.p.A, began its manufacturing journey with transmission systems in 1999 and axles in 2000.

The company started its operations using IP rights licensed from other entities within the Carraro Group and specialises in complex engineering products and solutions for original equipment manufacturer (OEM) customers.

It serves as an independent tier-1 provider, concentrating on axles and transmission systems for agricultural tractors and construction vehicles.

Carraro India operates two manufacturing plants in Pune -- one for drivelines and the other for gears.

These plants are equipped with advanced technologies for casting, machining, assembly, prototyping, testing, painting, and heat treatment.

Its key customers include large domestic and international OEMs. It exports to customers in Asia directly and indirectly, and outside Asia through Carraro Drive Tech Italia.