Carraro India, which provides axles and transmission systems for agricultural tractors and construction vehicles, has fixed ₹668-704 per share as the price band for its ₹1,250 crore initial public offer that is entirely through an offer for sale.
Sources said it is planning to spend about 63 million euros over the next three years in India to expand capacity, and add another manufacturing unit. Carraro has spent over 120 million euros in India over the 20-odd years it has been in the country, its fastest growth market.
Revenue from India
The company, which is a subsidiary of Carraro S.p.A, already has two manufacturing units in India and a research and development centre and the country contributes about a fifth to global revenues. Around 60 per cent of its revenues are from Europe and 10 per cent from China.
According to the company, it supplies to 38 manufacturers in India and six internationally. Its customers included large domestic and international OEMs, with long-term relationships lasting at least 15 years. Carraro India has a network of 220 suppliers across eight states in India and 58 international suppliers.
Its two manufacturing plants are located in Pune, one for drivelines and one for gears. Capacity utilisation of driveline manufacturing plant for FY24 stood at 81.07 per cent and for gears manufacturing plant it was 89.9 per cent.
Carraro India’s initial public offer will be open on December 20-24 and investors can bid for a minimum of 21 shares.