Carraro India
Book Building issueMainboardNSE₹1,250 Cr issue
-6.25%
Listing gain over issue price
Issue size
₹1,250 Cr
1 lot at cut-off
₹14,784
Lot size
21shares
Open
20 Dec 2024
Close
24 Dec 2024
Allotment
26 Dec 2024
Listing
30 Dec 2024
Listing performance
Issue price
₹704
Listed at
₹660
Listing-day close
₹636.30
Latest price
₹470.85
Close on 23 Oct 2026
Listing gain
-6.25%
Return since issue
-33.12%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Dec 2024 – 24 Dec 2024
- Listing date
- 30 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹704 per share
- Lot size
- 21 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹1,250 Cr
- Market cap at offer price
- ₹4,002 Cr
- Promoter holding
- 100.00% → 68.77% pre-issue → post-issue
- ISIN
- INE0V7W01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Bank Ltd.
- Registered office
- B2/ 2 MIDC, Ranjangaon, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 53,26,703 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 21 shares per lot, in multiples, at ₹704
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 21 | ₹14,784 |
| Retail (max) | 13 | 273 | ₹1,92,192 |
| S-HNI (min) | 14 | 294 | ₹2,06,976 |
| S-HNI (max) | 67 | 1,407 | ₹9,90,528 |
| B-HNI (min) | 68 | 1,428 | ₹10,05,312 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
53,26,703
Anchor portion
₹375 Cr
at ₹704 per share
Valuation and performance
Valuation at offer price
₹704 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.00 | 17.50 |
| P/E (×) | 64.00 | 40.23 |
| Market cap | — | ₹4,002 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 16.92%
- ROCE
- 19.35%
- Debt / equity
- 0.58
- PAT margin
- 3.50%
- NAV per share
- ₹65.05
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Carraro India
Carraro India Limited is an independent tier 1 solution provider incorporated in India in 1997, headquartered in Pune, Maharashtra. The company develops and manufactures axles, transmission systems, gears, shafts, and ring gears for agricultural tractors and construction vehicles, serving both domestic OEM customers and exporting globally. It operates with in-house R&D and manufacturing capabilities across two plants in Pune. The company is part of the Carraro Group (Italian parent company incorporated in 1960) and licenses the Carraro corporate name, logo, and trademarks. It derives approximately 33.27% of revenue from the Carraro Group (its largest customer), with additional revenue from OEM customers like Mahindra & Mahindra, CNH, and John Deere. The company exports 34.60% of its revenue, primarily to the European Union.
Company Analysis
from RHPCarraro India is a technology-driven integrated supplier of complex engineering products (axles, transmission systems, and gears) for OEM customers in the agricultural tractor and construction vehicle industries in India.
Carraro India Limited is an independent tier 1 solution provider incorporated in India in 1997, headquartered in Pune, Maharashtra. The company develops and manufactures axles, transmission systems, gears, shafts, and ring gears for agricultural tractors and construction vehicles, serving both domestic OEM customers and exporting globally. It operates with in-house R&D and manufacturing capabilities across two plants in Pune. The company is part of the Carraro Group (Italian parent company incorporated in 1960) and licenses the Carraro corporate name, logo, and trademarks. It derives approximately 33.27% of revenue from the Carraro Group (its largest customer), with additional revenue from OEM customers like Mahindra & Mahindra, CNH, and John Deere. The company exports 34.60% of its revenue, primarily to the European Union.
agricultural tractor componentsconstruction vehicle componentsautomotive componentsindustrial gears and shafts
Objects of the Issue
- Offer for Sale by the Promoter Selling Shareholder ₹12,500.00 million p.18
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.18
- The Company will not receive any proceeds from the Offer; proceeds go to the Promoter Selling Shareholder p.80
- Offer for Sale of Equity Shares and achieve the benefits of listing ₹12,500.00 million p.111
Issue Structure
- Total Issue
- [●] Equity Shares of face value of ₹ 10 each aggregating up to ₹12,500.00 million
- Fresh Issue
- Nil (100% Offer for Sale)
- Offer for Sale
- [●] Equity Shares of face value of ₹ 10 each aggregating up to ₹12,500.00 million by Carraro International S.E. (the Promoter Selling Shareholder)
- Price Band
- [●] per Equity Share (to be advertised at least two working days prior to Bid/Offer Opening Date)
- Lot Size
- [●] Equity Shares (minimum Bid Lot) and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
Carraro India generates revenue by manufacturing and supplying complex engineering products (axles, transmission systems, and gears) directly to OEM customers of agricultural tractors and construction vehicles on a tier 1 basis. The company operates on a long-term contract basis (typically 5+ years) with customers, receiving orders through separate schedules. Revenue is derived from sales of these products to both Indian and international OEM customers. The company also earns royalties from the Carraro Group for use of the Carraro brand (0.6% per quarter of net sales) and pays royalties for IP rights of products belonging to Carraro S.p.A.
Business Segments
Develops and manufactures axles, transmission systems, and gears for agricultural tractors of different HP ranges for off-highway vehicles in the agricultural tractor sector
Develops and manufactures axles, transmission systems, and gears for construction vehicles
Manufactures gears, shafts and ring gears for industrial and automotive vehicles
Designs and manufactures axles and transmission systems for agricultural tractors and construction vehicles
Manufactures gears as components for axles and transmissions
Manufactures axles and transmission systems for agricultural tractors in India based on customer specifications, including customized requirements on technical specifications, use case, mechanical and structural design. Products include transmission systems (T40 & 150, 50–90 HP, up to 150 HP) and axles (30–50 HP, 49–135 HP, 50–75 HP).
Manufactures gears and transmission systems for backhoe loaders, compact wheel loaders, telehandlers, cranes, forklifts, aerial working platforms, self-loading concrete mixers and soil compactors for use in construction. Products include hydrostatic and automatic transmission variants.
Manufactures a diverse range of products beyond core offerings including gears, shafts, and ring gears for industrial and automotive vehicles. Products used in industrial and automotive markets.
Designs and manufactures transmission systems for agricultural tractors ranging from 35 HP to 150 HP, including mechanical, power shift, and CVT options; sold to OEMs like Mahindra & Mahindra, TAFE, John Deere India, and International Tractors Limited.
Manufactures transmission systems for construction vehicles including backhoe loaders, telehandlers, wheel loaders, and rough terrain cranes; serves OEMs including Bull Machines, CNH, Volvo, Tata Hitachi, and Doosan Bobcat.
Manufactures a wide range of axles including steering axles, portal axles, and rigid axles for agricultural tractors (30-135 HP) and construction vehicles (1-17 ton); sold to OEMs and used in both domestic and export markets.
Manufactures ring gears, gears and shafts for industrial and automotive markets for captive consumption (in-house use for transmission and axle production) and sale to third-party customers including CNH Industrial; sold in India, Europe, and the United States.
Distributes spare parts to Indian customers through distributors and authorized dealers; provides training to OEM customer service teams and warranty support; over 40 customers use the company's spare parts.
Manufacturing of mechanical transmissions, clutches, hydraulic lifts and planetary drives, axles for agricultural tractors and construction equipment including components, parts and spares
Manufactures axles and transmission systems for agricultural tractors in the 30-50 HP range
Manufactures axles and transmission systems for construction vehicles including backhoe loaders, soil compactors, cranes, self-loading concrete mixers and small motor graders
Supplies gears mainly used in industrial and automotive markets, spare parts which are primarily loose components of agricultural tractors and construction vehicles and other products which are non-core parts
Manufacture and sale of transmission systems and axles for agricultural tractors
Manufacture and sale of axles and drive systems for construction equipment
SWOT Analysis
Strengths
- • Technology-driven integrated tier 1 supplier with full value chain capabilities(p.12)
- • Diverse product portfolio across agricultural and construction segments(p.12)
- • Strong revenue growth trajectory(p.18)
- • Improved profitability margins over recent years(p.36)
- • Leading tier 1 supplier and key supplier in mission-critical transmission/axle components(p.113)
- • Customer-centric one-stop shop with customized solutions(p.113)
- • Longstanding relationships with marquee local and international suppliers(p.113)
- • Strong in-house R&D with proprietary IP for innovation(p.113)
- • Technologically advanced manufacturing with large production capacity(p.113)
- • Stable experienced management with proven track record(p.113)
- • Market leader in transmission systems for tractors up to 150HP and 4WD capabilities(p.205)
- • Leading sole supplier in non-captive agriculture tractor transmission with 60-65% share in construction vehicle transmission(p.205)
- • 27-year presence in India with early-mover advantage and established customer relationships(p.206)
- • Complex mission-critical products with high switching costs for customers(p.206)
- • One-stop shop tier 1 supplier with comprehensive value chain from R&D to manufacturing(p.207)
- • Access to Carraro Group's global R&D capabilities and knowhow(p.206)
- • Long-term relationships with top 10 customers for at least 15 years(p.209)
- • Strong revenue growth in construction vehicle sector with 16.85% CAGR(p.206)
- • Established market leadership in transmission systems(p.215)
- • Strong R&D capabilities with proprietary IP acquisition(p.214)
- • Low defect rate and no product recalls(p.213)
- • In-house manufacturing of critical components(p.210)
- • Dual-supplier sourcing strategy to mitigate concentration risk(p.233)
- • Cost optimization through IP assignment and localization(p.214)
- • Long-term customer relationships with high switching costs(p.237)
- • Significant EBITDA margin improvement and growth(p.214)
- • Established manufacturing capabilities in drivetrain and transmission systems(p.293)
- • Strong financial position with consolidated equity of ₹4,195 million and positive cash generation(p.289)
- • Diversified customer base including related parties and external customers(p.309)
- • Profitable operations with restated profit for FY2024 of ₹625.63 million(p.290)
- • Recent acquisition of Carraro Technologies India Private Limited enhances subsidiary operations(p.313)
- • Early-mover with 27 years in India and extensive R&D capabilities(p.356)
- • Comprehensive end-to-end service offering from design to after-sales support(p.358)
- • Long-standing customer relationships with high switching costs(p.358)
- • Strong supplier network across India and internationally(p.359)
- • Strong cost reduction initiatives improving margins(p.370)
- • Reduced royalty expense through IP acquisition from promoter(p.371)
- • Improved profitability with profit growth outpacing revenue growth(p.375)
- • Strong return on capital employed(p.378)
Weaknesses
- • High customer concentration with top 5 and top 10 customers representing 69.55% and 87.88% of revenue(p.31)
- • Significant dependence on Carraro Group accounting for 33.27% of revenue and related party exposure(p.27)
- • High related party transaction exposure with 33.89% of total income and 6.70% of expenses(p.35)
- • Substantial tax contingent liabilities of ₹1,926.07 million as of September 30, 2024(p.46)
- • Lower EBITDA and PAT margins compared to industry peers(p.36)
- • Significant working capital requirements with net working capital turnover ratio of 4.20(p.43)
- • Manufacturing concentration in Pune with exposure to localized disruptions(p.37)
- • Negative cash flows from operations in six months ended September 30, 2023(p.46)
- • Supplier dependency and supply chain risks(p.49)
- • High material cost concentration (72.66% of revenue)(p.49)
- • Steel price volatility and high cost exposure (37.41% of materials consumed)(p.50)
- • Untraceable historical corporate records and potential regulatory penalties(p.55)
- • Reliance on Carraro Group for brand, customer sourcing, and operations(p.27)
- • Export revenue concentration and declining exports(p.53)
- • Underutilized manufacturing capacity(p.52)
- • Intellectual property risks and limited patent protection(p.51)
- • Unable to trace certain historical corporate records including RoC forms and RBI approval(p.49)
- • 100% promoter ownership concentration pre-IPO(p.100)
- • Dependence on limited customer base with top customers representing significant revenue concentration(p.209)
- • Declining capacity utilization in gear manufacturing plant in six months ended September 30, 2024(p.203)
- • Agricultural tractor revenue growth of only 3.13% CAGR from Fiscal 2022 to Fiscal 2024(p.206)
- • Heavy dependence on imports for components including engines and electronic components(p.159)
- • Heavy dependence on Carraro Group for operations and customers(p.232)
- • Customer concentration risk with top 10 customers representing 85%+ of revenue(p.239)
- • Geographic concentration of suppliers in Maharashtra(p.232)
- • Declining capacity utilization in recent periods(p.228)
- • High proportion of imported proprietary components(p.233)
- • Dependence on single utility suppliers(p.231)
- • High leverage with total borrowings of ₹1,957.77 million against equity of ₹4,194.42 million(p.289)
- • Significant dependence on related parties for revenue and financing(p.309)
- • Trade receivables include aged and credit-impaired amounts totaling ₹11.58 million(p.308)
- • Inventory-heavy operations with inventories representing 26.6% of current assets(p.289)
- • High customer concentration with major customer representing 35% of revenue(p.327)
- • Capacity underutilization in recent years requiring future expansion(p.364)
- • Significant dependence on material costs representing 72-76% of total income(p.363)
- • Exposure to contingent liabilities related to income tax disputes(p.326)
- • Heavy dependence on top 10 customers concentrated in customer base(p.384)
- • Significant concentration of supply from top suppliers(p.385)
- • High finance costs and increasing debt burden(p.371)
- • Contingent tax liabilities from transfer pricing disputes(p.383)
- • Employee provident fund compliance issues under investigation(p.392)
Opportunities
- • Strong growth in global agricultural tractor market projected to expand significantly(p.12)
- • Indian agricultural tractor market growing at 5.9% CAGR with steady expansion(p.12)
- • Construction vehicles market in India expected to grow at 5.0% CAGR through 2029(p.12)
- • Ability to expand customer base beyond current top 10 customers representing 87.88% of revenue(p.31)
- • Opportunity to improve margins through increased domestic sourcing and reduced royalty payments(p.36)
- • Product innovation and market penetration through new technologies(p.56)
- • Localization of supply chain and digitalization(p.56)
- • Customized solutions for OEM customers(p.50)
- • Strong R&D capabilities supporting innovation(p.64)
- • Strong growth in Indian agricultural tractor market(p.141)
- • Construction vehicle market expansion driven by infrastructure spending(p.142)
- • Rising infrastructure investment in India(p.150)
- • Growing adoption of electric and hybrid off-highway equipment(p.149)
- • Adoption of digitalization and IoT solutions in off-highway market(p.149)
- • Growing Indian tractor market projected to grow at CAGR of 8.2% from CY2024 to CY2029(p.206)
- • Construction vehicle market expected to grow at CAGR of 5.0% from CY2024 to CY2029(p.206)
- • Rising demand for 4WD tractors with market share expected to increase from 20% in CY2024 to 38% by CY2029(p.185)
- • Strong growth in 41-50HP tractor segment with CAGR of 8.9% from CY2024 to CY2029(p.185)
- • Global tractor exports expected to grow at CAGR of 24.5% from CY2024 to CY2029(p.185)
- • Shift towards electric and hybrid tractor technologies with development of electric transmissions(p.185)
- • Government initiatives promoting farm mechanization and agricultural infrastructure development(p.158)
- • Large-scale infrastructure projects driving construction vehicle demand(p.162)
- • Capitalize on shift to higher HP tractors and 4WD demand(p.215)
- • Expand into new product categories and applications(p.215)
- • Develop and leverage future-ready technologies for electric vehicles(p.216)
- • Increase localization of supply chain and reduce import dependency(p.216)
- • Vertical integration through in-house manufacturing of key components(p.217)
- • Leverage expansion capacity with automated manufacturing(p.216)
- • Launch 16 new tractor driveline and 11 construction vehicle projects(p.215)
- • Growth in off-highway vehicles driven by technological advancement(p.216)
- • Growing demand for agricultural and construction equipment in emerging markets(p.293)
- • Potential to leverage parent company Carraro S.p.A.'s global presence and technology in drivetrain systems(p.276)
- • Capacity for geographic expansion and market penetration through IPO capital(p.285)
- • Enhancement of export capabilities given existing foreign currency reserves of ₹838.88 million(p.311)
- • Growth in agricultural tractor and construction vehicle sectors in India(p.361)
- • Expansion opportunities through acquisition of R&D capabilities and IP rights(p.357)
- • Potential to increase production volume and capacity utilization(p.364)
- • Export growth potential to Asian and other emerging markets(p.362)
- • Shift to higher-margin products improving overall profitability(p.373)
- • Improved inventory management reducing working capital needs(p.376)
- • Local supply chain expansion reducing logistics costs(p.374)
Threats
- • Seasonality in agricultural tractor business with demand peaks between June-November(p.140)
- • High competitive pressure from established players with greater resources(p.45)
- • Competitor consolidation creating economies of scale challenges(p.45)
- • Customer backward integration risk reducing demand for supplied products(p.45)
- • Emerging electric tractor technology requiring significant R&D investment and adaptation(p.44)
- • Climate change and weather pattern volatility affecting agricultural demand(p.43)
- • Exposure to foreign exchange fluctuations with 34.60% of revenue from exports(p.38)
- • Transportation and logistics infrastructure disruptions impacting supply chain(p.48)
- • Dependence on top 10 suppliers representing 30.68% of material costs(p.48)
- • Covenant restrictions on indebtedness affecting strategic flexibility(p.44)
- • Commodity price volatility and global supply chain disruptions(p.49)
- • Steel price increases and geopolitical impacts(p.50)
- • Trade policy and tariff changes affecting imports(p.49)
- • Dependence on Indian and overseas supplier regions(p.49)
- • Global economic downturn and weaker macroeconomic conditions(p.54)
- • Foreign exchange rate fluctuations(p.62)
- • Stringent emission regulations and compliance costs(p.58)
- • Customer demand fluctuations and monsoon dependency(p.55)
- • Stringent emission regulations impacting product design and costs(p.151)
- • Irregular monsoon impacting agricultural equipment demand(p.151)
- • Slow adoption of new electric/hybrid technology due to infrastructure gaps(p.151)
- • Potential India-EU FTA exposing agricultural sector to increased competition(p.151)
- • Stringent emission regulations (TREM IV and TREM V) requiring investments in new technologies(p.158)
- • Rising adoption of electric tractors which may displace traditional components market(p.159)
- • Market saturation in traditional tractor markets in northern and western India(p.160)
- • Competitors expanding local production capacity and entering strategic partnerships(p.185)
- • Volatility in raw material prices affecting operating margins(p.173)
- • Supply chain disruptions from geopolitical tensions and global conflicts(p.173)
- • Monsoon dependency affecting tractor sales in India(p.159)
- • Shift towards used tractor market reducing OEM component demand(p.173)
- • Potential disruption from regulatory changes in emission norms(p.215)
- • Industry cyclicality and dependence on tractor and construction vehicle demand(p.217)
- • International competitive pressure and exports exposure(p.237)
- • Raw material price volatility and supply chain risks(p.234)
- • Dependence on imports for proprietary components(p.210)
- • Exposure to foreign exchange risk through unsecured foreign currency loans at EURIBOR + 4.5%(p.314)
- • Cyclicality and volatility in agricultural and construction equipment demand(p.293)
- • Dependence on key suppliers for raw materials with inventory write-downs recorded historically(p.308)
- • Rising interest costs with borrowing facility rates between 8.50% to 10.20% and finance costs of ₹118.94 million in H1 FY2025(p.290)
- • Macro-economic cyclicality affecting agricultural and construction vehicle demand(p.361)
- • Volatility in raw material costs and international supply chain disruptions(p.363)
- • Foreign exchange volatility affecting 25-35% of revenues and costs(p.361)
- • Weaker macro-economic conditions in western destination markets impacting exports(p.361)
- • Weak macroeconomic conditions affecting export markets(p.370)
- • Decline in export sales reducing overall revenue(p.370)
- • Loss of export incentive eligibility reducing non-operating income(p.373)
- • Significant indirect tax and customs disputes with regulatory authorities(p.393)
- • Foreign exchange exposure from international operations(p.385)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Tomaso Carraro | Individual Promoter | Negligible (1 Equity Share jointly held with Carraro International S.E.) | — |
| Enrico Carraro | Individual Promoter | Negligible (1 Equity Share jointly held with Carraro International S.E.) | — |
| Carraro S.p.A. | Corporate Promoter | 0.00% (1 Equity Share) | — |
| Carraro International S.E. | Corporate Promoter and Promoter Selling Shareholder | 99.99% (56,851,531 Equity Shares of face value of ₹ 10 each) | — |
| Carraro International S.E. | Corporate Promoter / Promoter Selling Shareholder | 99.99% | — |
| Carraro International S.E. | Promoter | 99.99% | [●] |
| Carraro S.p.A. | Promoter | Negligible | [●] |
| Siap S.p.A. | Promoter Group | Negligible | [●] |
| Carraro S.p.A. | Promoter/Parent Company | — | — |
| Carraro International S.E. | Promoter Group | 99.99% | — |
| Carraro S.p.A. | Promoter Group | 0.01% | — |
| Tomaso Carraro | Promoter | — | — |
| Carraro International S.E. | Corporate Promoter | 99.99% | — |
| Carraro S.p.A. | Corporate Promoter | — | — |
| Tomaso Carraro | Individual Promoter and Vice Chairman and Non-Executive Director | — | — |
| Enrico Carraro | Individual Promoter | — | — |
| Carraro International S.E. | Direct Holding Company (w.e.f. August 01, 2020) | — | — |
| Carraro S.p.A. | Ultimate Holding Company (Holding Company of Carraro International S.E.) | — | — |
| Carraro International S.E. | Promoter Selling Shareholder | — | — |
Leadership
Ettore Francesco Sequi · Chairman
Davide Grossi · Whole-time Director and Chief Financial Officer
Nakul Shivaji Patil · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Carraro India IPO FAQs
What is the lot size of Carraro India IPO?
The minimum lot size of Carraro India IPO is 21 shares. One lot costs ₹14,784 at the cut-off price.
When does Carraro India IPO open and close?
Carraro India IPO opened for subscription on 20 Dec 2024 and closed on 24 Dec 2024.
What is the listing date of Carraro India IPO?
Carraro India IPO listed on 30 Dec 2024.