Exciting News: Carraro India, a leading manufacturer of axles and transmission systems for agricultural tractors and construction vehicles, is all set to raise a whopping ₹1,811.65 crore through its upcoming initial public offering (IPO). The company officially filed its preliminary prospectus with the Securities and Exchange Board of India (SEBI) on August 23.
The IPO will primarily consist of an offer-for-sale by the company’s promoter, Carraro International S E, a holding entity within the renowned Carraro S.p.A. group. This means that all the proceeds from this offering will directly benefit the selling shareholder, with Carraro India itself not retaining any funds from the IPO.
Hailing from Italy, Carraro S.p.A. is the parent company of the Carraro Group, specializing in manufacturing top-of-the-line transmission systems like axles, transmissions, and drives used in agricultural and construction equipment for off-highway vehicles.
Established in 1997, Carraro India is in fierce competition with industry frontrunners such as Escorts Kubota, Schaeffler India, Sona BLW Precision Forgings, and more. Their product range includes backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders, catering to both agricultural and construction sectors. Moreover, Carraro India also supplies gears, shafts, and ring gears for industrial and automotive vehicles.
Financial Insights of Carraro India
With operations spanning across two manufacturing plants in Pune, Carraro India managed to supply products to 38 manufacturers nationwide in the fiscal year 2024, with an impressive 64.82 percent of its revenue stemming from domestic sales.
Despite a modest growth in revenue, Carraro India saw its profit for the fiscal year 2024 surge by 29.4 percent, totaling ₹60.6 crore compared to ₹47 crore in the previous year. This significant growth was primarily fueled by robust operational performance.
In the year ending March 2024, the company reported revenue of ₹1,770.5 crore, indicating a 4.4 percent increase from the previous fiscal year. Furthermore, its EBITDA (earnings before interest, tax, depreciation, and amortization) surged by 27.2 percent year-on-year to ₹128.2 crore, with the EBITDA margin witnessing a notable improvement of 130 basis points, reaching 7.2 percent in FY24.
