Carraro India shares list at 8% discount, debut disappoints

Carraro India’s IPO, which concluded on December 24, saw a subscription of 1.12 times, driven by demand from qualified institutional buyers (QIBs). The shares debuted at a discount on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Carraro India listed at Rs 651 on NSE, marking a 7.53% discount from the issue price of Rs 704. On BSE, the stock opened at Rs 660, representing a 6.25% discount.

Offer for Sale and Anchor Investor Participation
The IPO was a pure offer-for-sale (OFS) offering, valued at Rs 1,250 crore. Ahead of the IPO, the company raised Rs 375 crore from anchor investors by allotting 53.26 lakh shares at Rs 704 each. Notably, 10 domestic mutual funds participated in the anchor portion, accounting for 51.47% of the total anchor investment.

Company Profile and Business Focus
Carraro India is a technology-driven integrated supplier specializing in complex engineering products and solutions. The company serves the agricultural tractor and construction vehicle industries in India, focusing on axles, transmission systems, and gears. Carraro offers end-to-end services, from in-house product design to manufacturing. The company is part of the Carraro Group, a global leader in transmission systems for off-highway vehicles.

Financial Performance
Carraro India reported a revenue of Rs 1,770.5 crore for the fiscal year ending March 2024, marking a 4.4% growth from Rs 1,695.12 crore in the previous year. Despite modest topline growth, the company achieved a significant 29.4% increase in profit, with a net profit of Rs 60.6 crore compared to Rs 47 crore in the previous year, driven by strong operating performance.

Outlook
With its focus on the growing Indian agricultural and construction sectors, Carraro India aims to strengthen its position as a leading supplier of high-quality engineering solutions.