Summary of IPO Note: Carraro India Limited IPO - 20 Dec 2024

Carraro India Ltd. (CIL) is launching its IPO, aiming to raise up to ₹1250 crore, with a price band of ₹668-704 per share, opening December 20, 2024. This IPO, entirely an Offer for Sale (OFS), aims to provide an exit for the Promoter Selling Shareholder and enhance the company’s visibility and brand, while providing liquidity to existing shareholders. CIL, a technology-driven integrated supplier, specializes in complex engineering products and solutions for original equipment manufacturers (OEMs) in the agricultural tractor and construction vehicle sectors in India. As a tier 1 solution provider, CIL manufactures critical components like axles, transmission systems, and gears. Leveraging 27 years of presence in India and the support of its parent company, Carraro S.p.A., CIL has established a robust network of local and international customers and suppliers.

Company Overview and Operations:

• Global Reach: CIL operates primarily in India, with two manufacturing plants in Pune, focusing on driveline and gear production.
• Product Portfolio: Specializes in axles, transmission systems, and gears for agricultural and construction vehicles, along with industrial and automotive gears and spare parts.
• Manufacturing and Quality: Maintains advanced manufacturing facilities equipped with technologies for casting, machining, assembly, testing, and heat treatment.
• Customer Base: Serves 38 OEMs in India and international markets, with long-standing relationships, and has a network of 220 Indian and 58 global suppliers.
• Parent Company Support: Operates under Carraro S.p.A., benefiting from its brand and technological expertise.

IPO Details:

• Issue Size: Offer for sale of up to ₹1250 crore.
• Price Band: Rs. 668 – 704.
• Objectives: To facilitate the Offer for Sale and achieve listing benefits, enhancing visibility and providing shareholder liquidity.
• Listing: BSE & NSE. Shareholding Pattern: Post-issue, promoters will hold 68.77%, and the public will hold 31.23%.

Competitive Strengths:

• Leading Tier 1 Supplier: Recognized as a leading supplier of transmission systems and a key supplier of axles in India.
• Customer-Centric Solutions: Provides customized solutions to a long-standing OEM customer base, managing the entire value chain.
• Strong Supplier Relationships: Maintains long-term relationships with local and international suppliers.
• In-House R&D: Possesses strong R&D capabilities, driving product innovation.
• Advanced Manufacturing: Operates technologically advanced manufacturing plants with in-house gear production.
• Experienced Management: Led by a stable and experienced senior management team.

Industry Outlook:

• Growing Market: The global off-highway market, including agricultural and construction equipment, is experiencing steady growth.
• Agricultural Tractor Market: The global agricultural tractor market is expanding, with India being a significant contributor.
• Construction Vehicle Market: The global construction vehicle market is also growing, driven by infrastructure development.
• Indian Off-Highway Market: The Indian off-highway market is expected to grow in both agricultural and construction sectors.