Carraro India files draft papers for Rs 1,812 Cr IPO

Carraro India Ltd, a manufacturer of transmission systems for off-highway vehicles and other agricultural and construction equipment, has filed draft papers with markets regulator for Sebi for its Rs 1,812-crore initial public offering (IPO).

The Pune-based company's initial share-sale is completely an Offer-For-Sale (OFS) by Carraro International, according to the draft red herring prospectus (DRHP).

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

Founded in 1997, Carraro India 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.

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.

As of March 31, 2024, the company supplied to 38 manufacturers in India and six internationally. Its key customers include large domestic and international OEMs. It exports to customers in Asia directly and indirectly, as well as to customers outside of Asia through Carraro Drive Tech Italia S.p.A.

Its key clients in the agricultural 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 Ltd.

The company's revenue from operations grew 4.44 per cent to Rs 1,770.45 crore in fiscal 2024 from Rs 1,695.12 crore in fiscal 2023 and profit after tax rose 29.44 per cent to Rs 60.58 crore in fiscal 2024 from Rs 46.80 crore in fiscal 2023.

Axis Capital Ltd BNP Paribas and Nuvama Wealth Management Ltd are the book-running lead managers for the issue.