Carraro India, a leading technology-driven integrated supplier of axles, transmission systems, and gears for the agricultural tractor and construction vehicle industries, is launching its Initial Public Offering (IPO). The offer amounts to ₹1,250.00 Crores, consisting entirely of an Offer for Sale (OFS) of 177.55 lakh shares. The subscription period for the Carraro India IPO runs from December 20, 2024, to December 24, 2024, with allotment expected to be finalized by December 26, 2024. The shares will be listed on BSE and NSE with the tentative listing date set for December 30, 2024.

The price band for the IPO is set at ₹668 to ₹704 per share. At the upper price band of ₹704, the market capitalization of Carraro India will be ₹4,002.34 Crores. The lot size for this IPO is 21 shares, which means retail investors need to make a minimum investment of ₹14,784. High-Net-Worth Individuals (HNIs) are required to apply for a minimum of 14 lots (294 shares), amounting to ₹2,06,976.

Carraro India IPO Subscription Status

As of December 20, 2024, the Carraro India IPO has been subscribed 0.09 times on the first day of the subscription period, indicating low initial demand. The remaining days of the subscription window will likely provide more clarity on investor interest.

Grey Market Premium (GMP) and Expected Listing Price

The Grey Market Premium (GMP) for the Carraro India IPO stands at ₹76, implying a potential 10.84% listing gain. The expected listing price is ₹780, which represents a moderate premium over the issue price, suggesting some positive movement for investors upon listing.

Carraro India IPO Anchor Investors Report

The company has raised ₹375 Crores from Anchor Investors, who have subscribed to 53,26,703 equity shares at the price of ₹704 per share. This allocation of shares to institutional investors reflects confidence in the company's prospects, although retail subscription is currently slower than expected.

Carraro India IPO Allotment Process

The IPO allotment date for Carraro India is December 26, 2024. To check the allotment status, follow these steps:

1. Visit the IPO allotment status page.
2. Select Carraro India IPO from the dropdown.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check your allotment status.

Objectives of the Carraro India IPO

Carraro India will not receive any proceeds from this Offer for Sale (OFS), as the funds will go directly to the Promoter Selling Shareholders after deduction of offer-related expenses and taxes.

Financial Performance and Valuation Metrics

For the period ending September 30, 2024, Carraro India reported:

• Revenues: ₹9,227.39 million
• EBITDA: ₹1,010.96 million
• Profit after Tax (PAT): ₹496.32 million

For the fiscal years ending 2024, 2023, and 2022, the company has demonstrated consistent revenue growth and profitability. The Pre-issue EPS is ₹11 and the Post-issue EPS remains ₹11, suggesting stable earnings per share. The P/E ratio of 64.00x is slightly above the industry average of 56x, indicating that the IPO may be fully priced at the upper end of the price band.

Return on Capital Employed (ROCE) for FY24 is 19.35%, and Return on Equity (RoE) is 17.69%, reflecting a strong financial performance and healthy profitability.

IPO Review and Recommendation

Carraro India is a technology-driven supplier in the engineering sector, specializing in axles, transmission systems, and gears. The company’s financials are solid with consistent revenue growth and profitability. However, the P/E ratio above the industry average and the grey market premium (GMP) showing potential for modest gains suggest limited upside for listing gains.

We recommend avoiding the Carraro India IPO for listing gains, especially given the moderate GMP and the full pricing of the IPO. However, long-term investors with confidence in the company’s growth prospects in the agricultural and construction sectors might find this IPO appealing.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX