Carraro India Limited is coming up with an IPO, offering to sell 1.78 crore shares worth INR 1,250 crores. The company aims to enhance visibility, brand, and liquidity by providing a public market for shares. 

Carraro India IPO – Important Dates 

Carraro India Limited IPO – Company Profile 

Carraro India Limited is a technology-driven supplier providing complex engineering products and solutions for OEMs. Specialising in axles, transmission systems, and gears, it supports the entire value chain with in-house design and manufacturing capabilities. 

They manufacture axles and transmission systems for agricultural tractors and construction vehicles, including gears, shafts, and ring gears. Their products are mission-critical components for off-highway vehicles in agriculture, construction, and industrial sectors. 

They operate two manufacturing plants in Pune, Maharashtra, specialising in driveline and gear production. They are equipped with advanced technologies, including casting, machining, and heat treatment, and are IATF 16949:2016 certified for quality management in gear manufacturing. 

Carraro India Ltd IPO Fundamental Analysis 

Carraro India Limited’s financial analysis reveals a mixed performance. Revenue shows consistent growth, while profitability and earnings per share have improved. The company’s financial position strengthens, though inventory turnover and liquidity challenges remain. 

• Revenue Trend: The revenue increased from ₹14,975.43 millions in March 2022 to ₹17,131.45 millions in March 2023. The revenue for the current year’s 6-month period ending September 2024 is INR 9,146.19 millions. 
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹224.26 millions in March 2022 to ₹497.34 millions by September 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹3.94 in March 2022 to ₹8.75 by September 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has risen from 7.67% to 11.86%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Carraro India IPO Financial Analysis 

Carraro India Limited IPO Peer Comparison 

Carraro India Limited, Escorts Kubota, Schaeffler India, Sona BLW Precision, Ramakrishna Forgings, Happy Forgings, and Action Construction Equipment are key players, showcasing diverse revenue, earnings, and market performance metrics across the industry. 

Carraro India Ltd IPO Objective 

The main objective of Carraro India Limited is to enhance visibility, brand, and liquidity by providing a public market for shares. 

Carraro India IPO Risks And Challenges 

Carraro India Limited’s risk includes reliance on the Carraro Group for brand licensing, procurement, and support, significant related party transactions, seasonal fluctuations in tractor sales, and increased operating costs, which could impact performance and share price volatility. 

• The company relies on the Carraro Group for brand licensing, customer sourcing, procurement, R&D, and general operations support, and it receives significant revenue and material purchases from them. Any disruption in this relationship could significantly affect its operations. 

• They engage in related-party transactions with the Carraro Group, Directors, and Key Managerial Personnel, which comprise a significant portion of their income and expenses. These transactions may involve substantial capital outlay and uncertain returns. 

• Sales of agricultural tractors are influenced by seasonal demand and fluctuations in operating costs are expected as the company expands. Increased costs could raise product prices, potentially reducing demand and impacting future performance and share price volatility. 

Carraro India Ltd IPO – Industry & Market Potential 

The global agricultural tractor market is projected to grow by 5.4% CAGR, from 2.50 million units in 2024 to 3.24 million units by 2029, driven by increased farm mechanisation and favourable government policies worldwide. 

India, the largest global tractor market, accounted for 35-40% of global sales in 2023. Tractor sales are projected to reach 1,577.91 thousand units by 2029, with demand peaking between June and November, driven by seasonal factors and government support. 

The Indian construction vehicle market, fueled by government investments in infrastructure projects like roads, railways, and ports, is expected to grow from 109.03 thousand units in 2023 to 147.45 thousand units by 2029. 

Carraro India Limited IPO – Type of Offer 

Carraro India Limited proposes an offer to sell 1.78 crore existing shares worth INR 1,250 crores, aiming to enhance visibility, brand, and liquidity, providing a public market for shares. 

1. Offer for sale: Carraro India Limited is offering to sell 1.78 crore existing shares worth INR 1,250 crores. The following are the details of the existing shareholder, who is also the promoter selling the shares:

Carraro India IPO Offer Size 

The offer size of Carraro India Limited is INR 1,250 crores, consisting of an offer to sell 1.78 crore existing shares worth INR 1,250 crores. The company aims to enhance visibility, brand, and liquidity, providing a public market for shares. 

Carraro India Limited IPO Allotment Structure 

Carraro India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for Carraro India IPO?

To apply for the Carraro India Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Carraro India Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Carraro India Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Carraro India IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Carraro India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Carraro India Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.  

Apart from Alice Blue, there are other ways to check the allotment status of the Carraro India Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Carraro India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Carraro India Ltd IPO Offer Registrar

The registrar for the Carraro India Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 247 Park

L.B.S. Marg, Vikhroli (West)

Mumbai 400 083

Maharashtra, India

Tel: +91 8108114949

E-mail: [email protected]

Website: www.linkintime.co.in 

Carraro India IPO – FAQs