Carraro India Limited IPO

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They are a technology-driven integrated supplier specializing in the development of complex engineering products and solutions for original equipment manufacturer (OEM) customers. As an independent Tier-1 solution provider, they focus on axles, transmission systems, and gears for the agricultural tractor and construction vehicle industries in India.

Product Offerings

They focus on developing mission-critical components for agricultural tractors and construction vehicles, which are indispensable for their customers’ final products.

Key Products:

i. Axles and Transmission Systems for:
a. Agricultural Tractors
b. Construction Vehicles, including: Backhoe Loaders, Soil Compactors, Cranes, Self-Loading Concrete Mixers and Small Motor Graders.
ii. Gears, Shafts, and Ring Gears for: Industrial Vehicles and Automotive Vehicles.

Diverse Range: Axles and transmission systems are offered across different horsepower (HP) ranges for off-highway vehicles.

Conclusion

As a leading Tier-1 supplier of axles, transmission systems, and gears for agricultural and construction vehicles, they leverage their technological expertise, long-standing market presence, and R&D capabilities to deliver customized, mission-critical solutions to OEM customers. Their association with Carraro Group strengthens their global positioning, while their extensive product range ensures they remain a key player in India’s off-highway vehicle market.

Objects of the Carraro India Limited IPO:

The Company will not receive any proceeds from the Offer and all the Offer Proceeds will be received by the Promoter Selling Shareholder after deduction of Offer related expenses and relevant taxes thereon, to be borne by the Promoter Selling Shareholder. Total number of share issue :- i. Offer for sale is 1,77,55,680 shares.
DRHP of Carraro India Limited IPO
RHP of Carraro India Limited IPO

Carraro India Limited IPO Details:

Open Date: Dec 20 2024
Close Date: Dec 24 2024
Total Shares: 1,77,55,680
Face Value: ₹ 10 Per Equity Share
Issue Size: 1,250.00 Cr.
Lot Size: 21 Shares
Issue Price: ₹ 668 - 704 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 30 2024

Promoters And Management:

Ettore Francesco Sequi, Chairman and Independent Director of the Company, holds a pre-reform degree in political science from the University of Cagliari. With over 37 years of experience in foreign affairs, he previously served in various roles at Italy's Ministry of Foreign Affairs and International Cooperation (1985-2023). He currently represents Italy on the Board of Government Representatives for the Einstein Telescope Infrastructure. Tomaso Carraro, Vice Chairman, Non-Executive Director, and Promoter of the Company, has been associated with the Company since April 21, 2015. He holds an MBA from the University of Chicago and has over 26 years of experience in the manufacturing sector. He is currently involved with several Carraro Group entities, including Carraro China Drive Systems, Carraro Drive Tech Italia, Carraro International, Carraro S.p.A., Carraro North America Inc., and Siap S.p.A. He was previously associated with Gear World S.p.A. Balaji Gopalan, Managing Director of the Company, has been associated with the Company since September 1, 1998. He holds a Ph.D. in Human Resource Management from the University of Pune and has over 25 years of experience in the manufacturing sector.

Financials of Carraro India Limited IPO:

In Cr.
Particulars Sep 30, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Revenue from Operations 914.61 1,788.96 1,713.14 1497.54
EBITDA 101.09 149.99 124.81 82.86
EBITDA Margins 10.96% 8.30% 7.20% 5.45%
PAT 49.73 62.56 48.45 22.42
PAT Margins 5.44% 3.50% 2.83% 1.50%
ROCE 13.13% 19.35% 16.30% 10%
CFOA 43.72 112.18 80.21 95.83

Comparison With Peers:

Companies Revenue EBITDA PAT D/E Ratio MCap P/E
Carraro India       (FY 2024) 1,788.96 Cr. 149.99 Cr. (8.30%) 62.56 Cr. (3.50%) 0.47 4002.34 Cr. 63.98*
Escorts Kubota (TTM) 9,742 Cr. 1,207 Cr. (12%) 1,162 Cr (11.92%). 0.01 36,715 Cr. 31.60
Schaeffler India (TTM) 7,849 Cr. 1,418 Cr. (18%) 946 Cr. (12.05%) 0.01 52,226 Cr 55
Sona BLW Precision Forgings (TTM) 3,479 Cr. 981 Cr. (28%) 567 Cr. (16.30%) 0.04 37,864 Cr. 65.90
Ramkrishna Forgings (TTM) 4,094 Cr. 878 Cr. (21%) 451 Cr. (11.01%) 0.50 16,455 Cr. 44.70
Happy Forgings (TTM) 1,388 Cr. 395 Cr. (28%) 259 Cr. (18.65%) 0.09 9,695 Cr. 37.40
Action Construction Equipment (TTM) 3,080 Cr. 440 Cr. (14%) 366 Cr. (11.88%) 0.08 18,077 Cr. 49.40
*Forward PE on the basis of FY 25 profit is 40.24.

Recommendation on Carraro India Limited IPO:

Review and Recommendation of Carraro India Ltd. IPO by team IZ is 3/10.

Lead Manager of Carraro India Limited IPO:

  1. Axis Bank Limited
  2. BNP Paribas
  3. Nuvama Wealth Management Limited

Registrar of Carraro India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Carraro India Limited B2/ 2 MIDC, Ranjangaon, Pune 412 220 Maharashtra, Phone: +91 2138 662666 Email: company_secretary@carraroindia.com Website: https://www.carraroindia.com/

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