Upcoming IPO: Carraro India, auto parts maker, aims to raise ₹1,811 crore, bolstered by strong financial performance

Upcoming IPO: Carraro India, a manufacturer of axles and transmission systems for agricultural tractors and construction vehicles, has announced plans to raise ₹1,811.65 crore through an initial public offering (IPO). The company submitted its preliminary prospectus to the Securities and Exchange Board of India (SEBI) on August 23.

The IPO will consist entirely of an offer-for-sale by the company’s promoter, Carraro International S E, a holding entity under the Carraro S.p.A. group. As a result, all proceeds from the offering will go to the selling shareholder, with Carraro India not retaining any funds from the IPO.

Carraro S.p.A., based in Italy, is the parent organization of the Carraro Group, which specializes in manufacturing transmission systems—such as axles, transmissions, and drives—used in agricultural and construction equipment for off-highway vehicles.

Founded in 1997, Carraro India competes with industry peers, including Escorts Kubota, Schaeffler India, Sona BLW Precision Forgings, Ramakrishna Forgings, Happy Forgings, and Action Construction Equipment. The company’s product lineup includes backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders catering to both the agricultural and construction sectors. Additionally, Carraro India supplies gears, shafts, and ring gears for industrial and automotive vehicles.

Carraro India's financial result

Operating out of two manufacturing plants in Pune, Carraro India supplied products to 38 manufacturers across India in the fiscal year 2024, with 64.82 per cent of its revenue coming from domestic sales.

Despite modest growth in revenue, Carraro India’s profit for the fiscal year 2024 increased by 29.4 per cent, reaching ₹60.6 crore compared to ₹47 crore in the previous year. This growth was driven by strong operating performance.

The company recorded revenue of ₹1,770.5 crore for the year ending March 2024, marking a 4.4 per cent increase from the previous fiscal year. Its EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 27.2 per cent year-on-year to ₹128.2 crore, with the EBITDA margin improving by 130 basis points to 7.2 per cent in FY24.