Carraro India Files DRHP for ₹1,812 Crore IPO, Set to Boost Mahindra, Escorts Kubota Supply Chain

Carraro India Limited, a Pune-based company that makes transmission systems for tractors and off-highway vehicles, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The IPO will be a complete offer for sale (OFS) worth up to ₹1,811.65 crore by Carraro International S.E. The offer will be made through a book-building process, where up to 50% of the shares will be allocated to qualified institutional buyers, at least 15% to non-institutional investors, and at least 35% to retail individual investors.

Carraro India, a subsidiary of Carraro S.p.A, was established in 1997. The company started producing transmission systems in 1999 and axles in 2000. It specialises in complex engineering products for original equipment manufacturers (OEMs), focusing on axles and transmission systems for agricultural tractors and construction vehicles.

The Carraro Group is a leading supplier of transmission systems and axles in India’s agricultural tractor and construction vehicle industries. It is the top provider of transmission systems for tractors up to 150HP and four-wheel-drive capabilities. In 2023, Carraro India held a 60-65% market share in the non-captive construction vehicle transmission market and was the leading sole supplier in the non-captive agricultural tractor transmission market.

Carraro India operates two manufacturing plants in Pune, one for drivelines and one for gears. In FY24, the company supplied products to 38 manufacturers in India and six internationally. Its major clients include CNH, TAFE, Mahindra and Mahindra, John Deere India, Escorts Kubota, and others.

Carraro India’s revenue from operations grew by 4.44% from ₹1,695.12 crore in FY23 to ₹1,770.45 crore in FY24, mainly due to increased product sales. The company’s profit after tax rose by 29.44%, from ₹46.80 crore in FY23 to ₹60.58 crore in FY24.

Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the lead managers for the offer, and Link Intime India Private Limited is the registrar. The equity shares will be listed on both BSE and NSE.