Pune-based Carraro India files papers with SEBI for IPO
Business: Carraro India Ltd, a manufacturer of transmission systems for off-highway vehicles and other agricultural and construction equipment, on Saturday filed draft papers with market regulator Sebi for its Rs 1,812 crore initial public offering (IPO). According to the draft red herring prospectus (DRHP), the Pune-based company’s initial share sale is entirely an offer-for-sale (OFS) by Carraro International S.E. Since the entire issue is an OFS, all proceeds from the IPO will go directly to the selling shareholder rather than to the company. Carraro India, founded in 1997, is a subsidiary of Carraro S.p.A., which began its manufacturing journey with transmission systems in 1999 and axles in 2000. The company began 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 operates as an independent Tier 1 provider, focusing on axles and transmission systems for agricultural tractors and construction vehicles. Carraro India operates two manufacturing plants in Pune: one for drivelines and the other 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 38 manufacturers in India and six manufacturers internationally. Its major customers include large domestic and international OEMs. It exports directly and indirectly to customers in Asia, as well as to customers outside Asia through Carraro Drive Tech Italia S.p.A. Its major customers in the agricultural sector include CNH, TAFE, Mahindra & Mahindra, John Deere India Private Limited, Escorts Kubota, Action Construction Limited, and International Tractors Limited. In the construction vehicle sector, it provides services to CNH, Bull Machine, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra & Mahindra and Action Construction Ltd. The company’s revenue from operations grew 4.44 per cent from Rs 1,695.12 crore in FY 2023 to Rs 1,770.45 crore in FY 2024 and profit after tax grew 29.44 per cent from Rs 46.80 crore in FY 2023 to Rs 60.58 crore in FY 2024.
