Before the Carraro India IPO, anchor investors raised Rs. 375 crore collected

Carraro India Ltd, a maker of transmission systems for off-highway vehicles and other agricultural and construction equipment, on Thursday said it has raised Rs. 375 crores have been obtained. Aditya Birla Sun Life Mutual Fund (MF), HSBC MF, UTI MF, Sundaram MF, Motilal Oswal MF, Kotak Mahindra Life Insurance Company, Bajaj Allianz Life Insurance Company, Tata AIA Life Insurance Company and SBI General Insurance Company are among the anchor investors. As per circular uploaded on BSE website.

According to the circular, Carraro India has allotted 53.27 lakh equity shares to 33 funds at Rs 704, which is also at the upper end of the price band. This brings the transaction size to Rs. 375 crores.

For its initial share sale at Rs. The issue with a price band of 668-704 will open for public subscription on December 20 and close on December 24.

Carraro India’s IPO was fully funded by Carraro International SE at Rs. 1,250 crore shares is an offer for sale (OFS), with no new issue component, according to the red herring prospectus.

Since the entire issue is an OFS, all proceeds from the IPO will go directly to the selling shareholder rather than the company.

Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Established in 1997, a subsidiary of Carraro SPA, Carraro India 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 serves 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 September 2024, the company supplied its products to 38 manufacturers in India and six internationally.

Its major customers include major domestic and international OEMs. It exports directly and indirectly to customers in Asia and outside Asia through Carraro Drive Tech Italia.

Its major customers in the agricultural tractor sector include CNH, TAFE, Mahindra & 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 Limited.

On the financial front, the company’s revenue from operations in FY23 stood at Rs. 1,695.12 crore in FY24 by 4.44 percent to Rs. 1,770.45 crore, while profit after tax in FY24 was Rs. 46.8230 crore up by 29.44 percent to Rs. 60.58 crores.

Axis Capital Limited, BNP Paribas and Nuwama Wealth Management Limited are the book-running lead managers of the issue.