Carraro India’s IPO Enters Last Day On Slow Track: What You Need To Know
The Initial Public Offering (IPO) of Carraro India has been met with lukewarm response from investors, with the subscription rate standing at only 0.22 times on the second day of bidding. The Italian subsidiary, Carraro India, aimed to raise ₹1,250 crore through the IPO at a price band of ₹668-704. The IPO, which opened on Friday, is set to close today.
It is important to note that the entire issue is an offer-for-sale by Carraro International S E, with no fresh issue component involved. As of now, the issue has received bids for 28,80,696 shares against the offered 1,30,98,803 equity shares.
The retail portion and non-institutional investors’ portion were subscribed 0.35 times and 0.20 times, respectively. However, the Qualified Institutional Buyer portion is yet to see significant traction. Prior to the opening of the issue, Carraro India Ltd managed to raise ₹375 crore from anchor investors, which included both foreign and domestic institutions.
Some of the key institutions that participated in the anchor investments were Aditya Birla Mutual Fund, HSBC Mutual Fund, UTI Mutual Fund, Kotak Mahindra Life Insurance Company, LIC Mutual Fund, and Tata AIA Life Insurance Company, among others. Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers for the IPO, with Link Intime India Private Limited serving as the registrar of the issue.
Established in 1997, Carraro India is a subsidiary of Carraro S.p.A and specializes in manufacturing transmission systems and axles for agricultural tractors and construction vehicles. The company serves as an independent tier 1 provider, offering complex engineering products and solutions to OEM customers. Its product range includes axles and transmission systems for a variety of off-highway vehicles, such as backhoe loaders, soil compactors, cranes, and self-loading concrete mixers.
Despite the tepid response to the IPO so far, Carraro India’s expertise in providing critical components for agricultural and construction vehicles positions it well in the market. It will be interesting to see how the final day of bidding unfolds and whether investors show more interest in the company’s growth prospects.
