Carraro India Limited, a Pune-based manufacturer of transmission systems for tractors and off-highway vehicles, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) aimed at raising Rs 1,812 crore. The IPO, with a face value of Rs 10 each, is a complete offer for sale (OFS) amounting to Rs 1,811.65 crore by Carraro International S.E.
The IPO will be conducted through the book-building process. In this arrangement, up to 50% of the offer will be available for allocation to qualified institutional buyers, a minimum of 15% will be available for allocation to non-institutional investors, and at least 35% will be available for allocation to retail individual investors.
Operations and leadership
Carraro India was established in 1997 as a subsidiary of Carraro S.p.A and began manufacturing transmission systems in 1999 and axles in 2000. The company, which utilizes intellectual property (IP) rights licensed from other entities within the Carraro Group, specializes in complex engineering products and solutions for original equipment manufacturer (OEM) customers. It focuses primarily on axles and transmission systems for agricultural tractors and construction vehicles.
The Carraro India Board of Directors is chaired by Ettore Francesco Sequi, who also serves as an independent director. Tomaso Carraro, who has been with Carraro Group since 1992, is the director and vice-chairman. Other board members include Balaji Gopalan (Managing Director), Davide Grossi (Chief Financial Officer), Sudhendra Mannikar (Chief Operating Officer), and non-executive directors Enrico Gomiero and Andrea Conchetto. Uma Mandavgane and Kishore Saletore serve as independent directors.
Financials, and future prospects
The Carraro Group stands as one of the leading independent tier 1 suppliers of transmission systems and a key supplier of axles in the agricultural tractor and construction vehicle industries in India. It is the market leader in providing transmission systems for tractors up to 150HP and four-wheel drive capabilities.
Historically, Carraro India’s design capabilities were facilitated through Carraro Technologies India Private Limited (CTIPL) and the Carraro Group. However, with the transfer of IP rights on October 1, 2023, and the acquisition of CTIPL in June 2024, Carraro India now offers integrated design services, enhancing its competitive position in India. The company has increased its domestic business significantly; from exporting almost all its products in Fiscal 1997 to generating approximately 64.82% of its revenues from domestic sales in Fiscal 2024.
Carraro India's revenue from operations increased by 4.44%, rising from Rs 1,695.12 crore in fiscal 2023 to Rs 1,770.45 crore in fiscal 2024. This growth was primarily driven by increased revenue from product sales. Additionally, profit after tax saw a significant rise of 29.44%, escalating from Rs 46.80 crore in fiscal 2023 to Rs 60.58 crore in fiscal 2024.
Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers for this offering, while Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
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