Carraro India is a leading technology-driven company specializing in complex engineering products and solutions for original equipment manufacturers (OEMs) in India. The company is an independent tier 1 supplier, providing axles, transmission systems, and gears for agricultural tractors and construction vehicles. With a strong focus on innovation, Carraro India serves as a one-stop solution provider for the entire value chain of these products, boasting in-house design and manufacturing capabilities.

The Carraro India IPO, which is a Book Built Issue worth ₹1,250.00 Crores, consists entirely of an Offer for Sale (OFS) of 177.55 lakh shares. This IPO opens for subscription on December 20, 2024, and closes on December 24, 2024. The shares are expected to be listed on the BSE and NSE with a tentative listing date set for December 30, 2024. The share price band for this IPO is ₹668 to ₹704 per equity share, and the lot size is 21 shares.

Retail investors can participate by investing a minimum of ₹14,784, while High-Net-Worth Individuals (HNIs) must invest for a minimum of 14 lots (294 shares), amounting to ₹206,976. Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers for this IPO, with Link Intime India Private Limited acting as the registrar.

As of December 23, 2024, the IPO subscription status shows that it has been subscribed 0.14 times on its second day of the subscription period. Investors can track the live subscription status on the BSE website for real-time updates.

Carraro India IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Carraro India IPO is ₹76, which reflects an expected listing gain of 10.84%. However, it’s important to note that the GMP is based on unregulated market conditions, and no real price discovery occurs before the shares are officially listed on the stock exchange. The GMP is for educational purposes and should not be used as the sole indicator for investment decisions.

Carraro India IPO Anchor Investors

Carraro India raised ₹375 Crores from anchor investors at a price of ₹704 per share. A total of 53,26,703 equity shares were allocated to these investors. The allocation to anchor investors is drawn from the Qualified Institutional Buyers (QIBs) reservation portion.

Carraro India IPO Allotment Date

The allotment for the Carraro India IPO will be finalized on December 26, 2024. Investors can check their allotment status by visiting the registrar’s website. Here's how to do it:

• Navigate to the IPO allotment status page.
• Select Carraro India Limited IPO from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to check your allotment status.

Objectives of the IPO

Carraro India will not receive any proceeds from the offer, as all proceeds will be directed to the Promoter Selling Shareholder. The proceeds will be used to reduce offer-related expenses and taxes. The key objectives outlined by the company include:

• Reducing outstanding borrowings.
• Funding working capital requirements for expansion and growth.
• General corporate purposes.

Financial Performance and IPO Pricing

Carraro India has demonstrated consistent revenue and profit growth over the past few years. The company’s revenues for FY24 stood at ₹9,227.39 Million, with an EBITDA of ₹1,010.96 Million. Profit After Tax (PAT) for FY24 was ₹496.32 Million. The company's pre-issue P/E ratio is 64x, while the post-issue P/E ratio remains the same, indicating that the IPO is priced higher compared to the industry average of 32x.

The IPO is fully priced, and the high P/E ratio suggests that investors should consider all aspects before subscribing, including the company’s steady growth and strong position in the market. Based on the expected listing gain of 10.84%, we recommend that investors approach the Carraro India IPO with caution.

Investment Recommendations

Given the high valuation and the fully priced IPO, we recommend that investors avoid the Carraro India IPO for listing gains. However, long-term investors interested in the company’s growth story in the engineering and manufacturing sector may still find it appealing.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, 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.