Carraro India Limited is preparing to launch its initial public offering (IPO) from December 20 to December 24, 2024, with a target to raise approximately ₹1,250 crores. The IPO consists of an offer for sale of about 1.78 crore equity shares, priced between ₹668 and ₹704 per share. Carraro India specializes in manufacturing and supplying high-quality transmission systems and components for agricultural machinery, construction equipment, and other industrial applications.
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₹704
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Expert Opinions
Market sentiment for the Carraro India IPO is cautiously optimistic, reflecting investor interest in the engineering and manufacturing sectors. Company strengths include with a robust supplier network of 220 domestic and 58 international suppliers, Carraro India ensures a competitive edge through reliable sourcing and strong relationships with key OEM customers.
However, risks and challenges involve potential fluctuations in raw material prices, particularly steel, which could impact profit margins. The valuation analysis places the price band between ₹668 and ₹704 per share for a total issue size of ₹1,250 crores, which appears reasonable given the company’s growth metrics. From a long-term investment perspective, Carraro India is well-positioned to benefit from increasing demand in the agricultural and construction sectors.
Investor Considerations
Investors considering the Carraro India IPO should take into account several important factors. Company performance and fundamentals are strong, with FY24 revenue reaching ₹1,770.5 crores, reflecting a growth of 4.4%, alongside a net profit increase of 29.4% to ₹60.6 crores, showcasing operational efficiency. The sector outlook is favorable, driven by rising demand in the agricultural and construction machinery sectors, supported by government infrastructure initiatives.
The IPO valuation, set between ₹668 and ₹704 per share for a total issue size of ₹1,250 crores, appears attractive given the company’s market position as a Tier-1 supplier. Growth prospects are promising, with plans for capacity expansion and innovation in product offerings. However, risk factors include fluctuations in raw material prices and reliance on key customers for revenue generation. A long-term investment horizon is advisable, as Carraro India is well-positioned to capitalize on the growing demand in its sector while navigating inherent market challenges.
| Date | GMP | Trend |
|---|---|---|
| 29 Dec 2024 12.05 | ₹00 | --- |
| 28 Dec 2024 11.32 | ₹00 | --- |
| 27 Dec 2024 11.12 | ₹00 | --- |
| 26 Dec 2024 11.16 | ₹00 | --- |
| 25 Dec 2024 11.21 | ₹00 | --- |
| 24 Dec 2024 10.54 | ₹00 | --- |
| 23 Dec 2024 11.52 | ₹00 | --- |
| 22 Dec 2024 12.05 | ₹00 | --- |
| 21 Dec 2024 12.13 | ₹00 | --- |
| 20 Dec 2024 10.45 | ₹00 | --- |
| 19 Dec 2024 12.35 | ₹00 | --- |
| 18 Dec 2024 11.54 | ₹00 | --- |
| 17 Dec 2024 12.09 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Carraro India’s listing sentiment, though missed the magnitude. While the GMP of ₹0 suggested weak market enthusiasm with a flat listing, the stock actually listed at a discount of 7.53%. With a prediction error of 7.53%, the GMP correctly indicated negative market sentiment but failed to capture the full extent of the downside, demonstrating partial reliability as a sentiment indicator in this case.
Carraro India IPO Current GMP is ₹00.
Carraro India IPO Expected Returns is 0.00%.
Carraro India IPO estimated listing price is ₹704.