Carraro India IPO opens today: Check GMP, price band; Should you subscribe?

Carraro India IPO opens today, December 20, 2024, and is set to close for subscription on December 24, 2024. Check issue size, price band, lot size, GMP, review, and other key details here

Carraro India IPO opens today: The initial public offering of agricultural and construction equipment manufacturer Carraro India opens for public subscription today. The public offering comprises an entire offer for sale with promoter Carraro International S.E. divesting up to 1,77,55,680 equity shares of the company estimated to be worth around Rs 1,250 crore.

 

Carraro India has announced that it has already raised Rs 375.00 crore from anchor investors on the bidding concluded on December 19, 2024.

 

Carraro India IPO grey market premium (GMP) today

Meanwhile, ahead of its public offering launch, unlisted shares of Carraro India were trading flat in the grey market, revealed sources tracking unofficial markets. Thus, the grey market premium (GMP) of Carraro India IPO remains nil as of December 20, 2024. 

 

 

Carraro India IPO lot size, price band

Carraro India IPO is available at a price band of Rs 668-704, with a lot size of 21 shares. Accordingly, investors can bid for a minimum of one lot or 21 shares of Carraro India IPO with a minimum amount required of Rs 14,784. A retail investor can bid for a maximum of 13 lots or 273 shares of the public offering with the required amount being Rs 1,92,192.

 

The three-day subscription window to bid for the Carraro India IPO is set to close tentatively on Tuesday, December 24, 2024.

 

Carraro India IPO allotment, listing date

Following the closure of the subscription window, the basis of allotment of Carraro India IPO shares is expected to be finalised on Thursday, December 26, 2024. The successful allottees will receive the company’s shares in their demat accounts on Friday, December 27, 2024.

 

Shares of Carraro India are expected to make their D-street debut tentatively on Monday, December 30, 2024.

 

Carraro India IPO registrar, BRLM details

Link Intime India is the registrar for the Carraro India IPO, while Axis Bank, BNP Paribas, and Nuvama Wealth Management are the book-running lead managers.

 

Carraro India IPO review

Carraro India has succeeded in garnering reviews from brokerages including Deven Choksey Research Team, Bajaj Broking, and Anand Rathi Research Team.

 

Should You Subscribe to Carraro India IPO?

 

Anand Rathi Research Team - Subscribe for long-term

Anand Rathi Research Team in its report has recommended investors to subscribe to the Carraro India IPO for a long-term perspective. At the upper price band, the brokerage said, the company is valuing at a P/E of 45.83x, with an EV/Ebitda of 31.6x and a market cap of Rs 4,002.30 crore post-issue of equity shares and return on net worth of 16.92 per cent. "We believe that the IPO is fairly priced and recommend a 'Subscribe-Long term' rating to the IPO," said the brokerage in its report.

 

Bajaj Broking - Subscribe for long-term

Analysts at Bajaj Broking have also recommended subscribing to the public offering for the long term. Carraro India's competitive advantage, analysts said, lies in its technological innovations and product development capabilities. "The company's focus on research and development has led to the introduction of advanced products that cater to the evolving needs of the market. This innovative edge is a significant factor in its valuation, as it ensures the company's ability to stay ahead of competitors and meet market demands effectively," wrote the analysts in a note.

 

"Overall, Carraro India IPO valuation appears favorable, given its strong financial performance, solid market position, and positive industry trends. The company’s ability to maintain high growth rates, innovate, and adapt to changing market conditions positions it well for future success," they added.

 

Deven Choksey Research Team - Neutral

Brokerage firm Deven Choksey Research, in its research note, has assigned a Neutral rating on the Carraro India IPO. According to the brokerage, the company is a leader in non-captive agricultural and construction vehicle transmission systems, supported by strong OEM relationships with Mahindra, TAFE, and Escorts. The company faces challenges, including lagging revenue growth, low margins (Ebitda: 7.4 per cent, NPM: 3.5 per cent), and subpar return ratios (RoE: 17.7 per cent, RoCE: 19.4 per cent) compared to peers.

 

"A P/E multiple of 64.0x further raises concerns about overvaluation compared to peers, given its smaller scale and weaker profitability. While Carraro India has a strong market presence, valuation and operational inefficiencies warrant a cautious approach. Hence, we assign a Neutral rating to the company."

 

About Carraro India

Carraro India is a technology-driven integrated supplier that develops complex engineering products and solutions for their original equipment manufacturer (OEM) customers. They are an independent tier 1 solution provider of axles, transmission systems, and gears for the agricultural tractor and construction vehicle industries in India. The company supports the full value chain of services as a solution provider for axles, transmission systems, gears, and other related components with in-house product design manufacturing capabilities.