Auto parts maker Carraro India files papers with Sebi for Rs 1812 crore IPO

The IPO is fully comprised of an offer-for-sale valued at Rs 1,811.65 crore by its promoter, Carraro International SE, which operates as an investment holding company

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Auto parts maker Carraro India, a manufacturer of axles and transmission systems for agricultural tractors and construction vehicles, is planning to raise nearly Rs 1,812 crore through an initial public offering (IPO), reported Moneycontrol. The company submitted its draft papers to the capital markets regulator SEBI on August 23.

The parent company of Carraro International SE, Italy-based Carraro SpA, is the head of the Carraro Group. The group specialises in manufacturing transmission systems—including axles, transmissions, and drives—for off-highway agricultural and construction equipment.

The IPO consists entirely of an offer-for-sale worth Rs 1,811.65 crore by its promoter Carraro International SE, which functions as a holding company for investments, the report said. Consequently, all proceeds from the IPO will go directly to the selling shareholder, leaving Carraro India without any financial benefit from the public offering.

Carraro India financials 

Despite modest growth in revenue, Carraro India saw its profit rise by 29.4 per cent to Rs 60.6 crore in FY24, compared to Rs 47 crore in the previous year, driven by robust operational performance.

The company’s revenue for the fiscal year ending in March 2024 stood at Rs 1,770.5 crore, reflecting a 4.4 per cent rise compared to the prior year. EBITDA (earnings before interest, tax, depreciation, and amortisation) grew by 27.2 per cent year-on-year to Rs 128.2 crore, with the EBITDA margin improving by 130 basis points to 7.2 percent in FY24, Moneycontrol added.

Founded in 1997, Carraro India competes with publicly listed companies such as Escorts Kubota, Schaeffler India, Sona BLW Precision Forgings, Ramakrishna Forgings, Happy Forgings, and Action Construction Equipment. The company produces backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders for the agricultural and construction sectors. It also supplies gears, shafts, and ring gears for industrial and automotive applications.

Operating from two manufacturing facilities in Pune, the company supplied products to 38 manufacturers across India in FY24, with domestic sales accounting for 64.82 percent of its revenue in the last fiscal year, the report said.