Carraro India Limited gets Sebi nod for its Rs 1,812 crore IPO

Pune-based Component maker Carraro India Limited, manufacturer of transmission systems for tractors and off-highway vehicles, and agricultural and construction equipment, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 1812 crore through an initial public offering (IPO).

The Company had filed its IPO papers with Sebi on August 23, 2024.

The IPO, with a face value of ₹10 each, is a complete offer for sale (OFS) of up to Rs 1,811.65 crore by Carraro International S.E. 

Established 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 specializes 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. 

The Carraro Group are one of the leading independent tier 1 suppliers of transmissions systems and a key supplier of axles in the agricultural tractor and construction vehicle industries in India. Additionally, it has established itself as the market leader in providing transmission systems for tractors up to 150HP and four-wheel drive capabilities. 

Historically, Carraro India’s design capabilities were provided through Carraro Technologies India Private Limited (CTIPL) and the Carraro Group. 

The company’s products are crucial components of its customers' final products, including various off-highway vehicles, gears, shafts, and ring gears for industrial and automotive vehicles. Its product offering includes axles and transmission systems for a range of agricultural tractors and construction vehicles, including backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders. 

Carraro India operates two manufacturing plants in Pune: one for drivelines and one for gears. These plants are equipped with advanced technologies for casting, machining, assembly, prototyping, testing, painting, and heat treatment. Capacity utilization of Driveline manufacturing plant for fiscal 2024 stood at 81.07% and for Gears manufacturing plant it was 89.94%.

As of March 31, 2024, the company supplied to 38 manufacturers in India. Its key clients in the agricultural tractor sector include CNH, TAFE, Mahindra and Mahindra, John Deere India Private Limited, Escorts Kubota, Action Construction Limited, and International Tractors Limited. In the construction vehicle sector, it serves CNH, Bull Machines, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra and Mahindra, and Action Construction Limited. Additionally, CNH is a key customer in the other sectors.

Axis Capital Limited, BNP Paribas and Nuvama Wealth Management Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.