Auto parts maker Carraro India files DRHP for Rs 1,812 crore-IPO

Carraro India Restricted, a Pune-based producer of transmission programs for tractors & off-highway automobiles, and different agricultural and building tools, has filed its draft purple herring prospectus (DRHP) with capital market regulator Securities and Trade Board of India (SEBI) to mop up funds via an preliminary public providing (IPO).

The IPO is a whole supply on the market (OFS) of as much as Rs 1,811.65 crore by Carraro Worldwide S.E.

The supply is being made via the book-building course of, whereby no more than 50% of the supply shall be accessible for allocation on a proportionate foundation to certified institutional patrons, not lower than 15% of the supply shall be accessible for allocation to non-institutional buyers, and never lower than 35% of the supply shall be accessible for allocation to retail particular person buyers.

Established in 1997, Carraro India, a subsidiary of Carraro S.p.A, started its manufacturing journey with transmission programs in 1999 and axles in 2000. The corporate began its operations utilizing IP rights licensed from different entities inside the Carraro Group and focuses on advanced engineering merchandise and options for authentic tools producer (OEM) clients. It serves as an unbiased tier-1 supplier, concentrating on axles and transmission programs for agricultural tractors and building automobiles.

The Carraro Group is likely one of the main unbiased tier 1 suppliers of transmission programs and a key provider of axles within the agricultural tractor and building car industries in India. It has additionally established itself because the market chief in offering transmission programs for tractors as much as 150HP and four-wheel drive capabilities. In 2023, the corporate was the main sole provider within the non-captive section of the agriculture tractors transmission market and the market chief with a 60-65% share of the non-captive building car transmission market.Carraro India operates two manufacturing crops in Pune: one for drivelines and one for gears.In FY24, the corporate provided to 38 producers in India and 6 internationally. Its key clients within the agricultural tractor sector embrace CNH, TAFE, Mahindra and Mahindra, John Deere India Non-public Restricted, Escorts Kubota, Motion Building Restricted, and Worldwide Tractors Restricted. Within the building car sector, it serves CNH, Bull Machines, Liugong, Manitou Gear, Doosan, Escorts Kubota, Mahindra and Mahindra, and Motion Building Restricted.

Carraro India’s income from operations elevated by 4.44% from Rs 1,695.12 crore in FY23 to Rs 1,770.45 crore in FY24, primarily on account of a rise in income from the sale of merchandise. Revenue after tax elevated by 29.44% from Rs 46.80 crore in FY23 to Rs 60.58 crore in FY24.

Axis Capital Restricted, BNP Paribas and Nuvama Wealth Administration Restricted are the book-running lead managers and Hyperlink Intime India Non-public Restricted is the registrar of the supply. The fairness shares are proposed to be listed on BSE and NSE.