Carraro India Shares Debut With 7.52% Discount

Shares of Carraro India Ltd declined 7.52 per cent in market debut against the issue price of Rs 704 on Monday. The stock listed at Rs 660, a discount of 6.25 per cent from the issue price on the BSE. It further declined 10 per cent to Rs 633.30. At the NSE, the stock made its market debut at Rs 651, lower by 7.52 per cent. The company commanded a market valuation of Rs 3,679.15 crore. The initial share sale of Carraro India Ltd got subscribed 1.12 times on the last day of bidding on Tuesday.

The Initial Public Offering (IPO) had a price band of Rs 668-704 per share. Carraro India's IPO was completely an Offer-for-Sale (OFS) of shares worth Rs 1,250 crore by Carraro International SE, with no fresh issue component, according to the red herring prospectus. Founded in 1997, Carraro India, a subsidiary of Carraro S.p.A, began its manufacturing journey with transmission systems in 1999 and axles in 2000.

The company started its operations using IP rights licensed from other entities within the Carraro Group and specialises in complex engineering products and solutions for original equipment manufacturer (OEM) customers. It serves as an independent tier-1 provider, concentrating 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. Its key customers include large domestic and international OEMs. It exports to customers in Asia directly and indirectly and outside Asia through Carraro Drive Tech Italia. Its key clients in the agricultural tractor sector include CNH, TAFE, Mahindra and Mahindra, John Deere India Pvt Ltd, Escorts Kubota, Action Construction Ltd, and International Tractors Ltd. In the construction vehicle sector, it serves CNH, Bull Machines, Liugong, Manitou Equipment, Doosan, Escorts Kubota, Mahindra and Mahindra, and Action Construction Ltd.

(PTI)