Carraro India IPO Details: All You Need to Know

Carraro India, a prominent supplier of engineering products to Original Equipment Manufacturers (OEMs), is gearing up to launch its much-awaited IPO. With a strong presence in the manufacturing of axles, transmission systems, gears, and shafts for off-highway vehicles, Carraro India has built a reputation for delivering high-quality solutions for agricultural, construction, and industrial applications.

In this blog, we provide a detailed overview of the Carraro India IPO, including bidding dates, lot sizes, financial highlights, and key metrics, to help investors make informed decisions.

Carraro India IPO Overview

• IPO Open Date: December 20, 2024
• IPO Close Date: December 24, 2024
• Price Band: ₹668 to ₹704 per share
• Lot Size: 21 shares
• Total Issue Size: ₹1,250.00 Crore
• Offer for Sale: ₹1,250.00 Crore
• Face Value: ₹10 per share
• Issue Type: Book Built Issue IPO
• Listing At: BSE, NSE
• Expected Listing Date: December 30, 2024

The IPO offers 1,77,55,680 shares entirely through an Offer for Sale (OFS), with no fresh issue of shares. The proceeds from the OFS will go to the selling shareholders.

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About Carraro India

Founded in 1997, Carraro India has established itself as a key player in the engineering products sector, catering to the needs of OEM customers globally. The company’s offerings include:

• Axles and Transmission Systems: For agricultural tractors, backhoe loaders, soil compactors, and small motor graders.
• Gears and Shafts: Designed for industrial and automotive applications.
• In-House Solutions: Product design, manufacturing, and supply of critical components for off-highway vehicles.

Under the leadership of Managing Director Mr. Balaji Gopalan, the company has continually innovated to meet the evolving demands of its clients.

Carraro India Financial Highlights

Carraro India has demonstrated steady financial growth over the past three years, showcasing its operational strength and market demand.

Revenue (₹ Cr)

2022: ₹1,498
2023: ₹1,713
2024: ₹1,789

Total Assets (₹ Cr)

2022: ₹1,012
2023: ₹1,072
2024: ₹1,073

Profit (₹ Cr)

2022: ₹22.43
2023: ₹48.46
2024: ₹62.56

Also Read: Unimech Aerospace IPO Details

Key Financial Ratios Explained

1. Market Capitalization: ₹4,002.35 Crore
   This represents the total valuation of the company based on the IPO price. It highlights Carraro India’s significant position in the engineering sector.
2. Price-to-Book Value: 31.77
   This metric compares the market price of shares with the book value per share. A high value indicates that investors expect strong future growth.
3. PAT Margin: 3.50%
   The Profit After Tax (PAT) margin measures the net profit generated as a percentage of revenue. While a PAT margin of 3.50% is modest, it reflects consistent profitability in a competitive industry.
4. ROE: 17.69%
   The Return on Equity (ROE) measures how efficiently the company generates returns for its shareholders. An ROE of 17.69% is a sign of healthy financial management.
5. Debt-to-Equity Ratio: 0.58
   This ratio indicates the company’s reliance on debt for financing. A debt-to-equity ratio of 0.58 signifies balanced financial leverage, reducing risk for investors.

Carraro India IPO Lot Size and Investment Details

Investors can apply for shares in lots of 21 shares. Below is the minimum and maximum investment breakdown:

Retail Investors

• Minimum Lot: 21 shares | ₹14,784
• Maximum Lot: 13 lots (273 shares) | ₹1,92,192

S-HNI Investors

• Minimum Lot: 14 lots (294 shares) | ₹2,06,976
• Maximum Lot: 67 lots (1,407 shares) | ₹9,90,528

B-HNI Investors

• Minimum Lot: 68 lots (1,428 shares) | ₹10,05,312

Carraro India IPO Promoter Holding

Promoters include Tomaso Carraro, Enrico Carraro, Carraro S.p.A, and Carraro International S.E.

• Pre-Issue Holding: 100%
• Post-Issue Holding: 68.77%

Carraro India IPO Timeline (Tentative Schedule)

IPO Open Date: December 20, 2024
IPO Close Date: December 24, 2024
Basis of Allotment: December 26, 2024
Refund Initiation: December 27, 2024
Credit of Shares to Demat: December 27, 2024
Listing Date: December 30, 2024

Why Invest in Carraro India IPO?

Strengths

1. Established Market Presence: A leading supplier for OEMs with a strong product portfolio.
2. Steady Financial Growth: Consistent revenue and profit growth over the past three years.
3. Balanced Financial Leverage: A debt-to-equity ratio of 0.58 ensures financial stability.
4. Promoter Support: Backed by strong promoters with global experience in the engineering sector.

Risks

1. Sector Dependency: High reliance on the construction and agricultural sectors.
2. Modest PAT Margin: A lower profit margin compared to some peers in the industry.

Conclusion

The Carraro India IPO offers a promising investment opportunity in the engineering and manufacturing space. With robust financial metrics, a strong market presence, and an attractive valuation, this IPO could appeal to investors seeking long-term growth.

However, potential investors should weigh the risks and perform due diligence before making their decision. Stay tuned for more updates on Carraro India and other upcoming IPOs!

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