 issue price of ₹704 per share.){kind=link}
Carraro India, a subsidiary of Italy-based Carraro International, has officially entered the Indian stock market with its shares listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The company’s shares debuted on December 30, 2024, at a discounted price compared to the initial public offering (IPO) issue price of ₹704 per share.
Listing Performance
Carraro India’s shares were listed at ₹660 on the BSE and ₹651 on the NSE, reflecting discounts of 6.25% and 7.53%, respectively, from the IPO price. Despite the lukewarm listing, the shares exhibited volatility during intraday trading, touching a high of ₹682 before declining. By mid-morning, the shares were trading at ₹636.75 on the BSE and ₹640.75 on the NSE.
IPO Subscription Details
The IPO, which closed on December 24, 2024, saw moderate investor participation, being subscribed 1.12 times overall. Qualified institutional buyers (QIBs) drove much of the demand, subscribing to 2.21 times their allotted portion. Retail investors, however, subscribed to only 71% of their quota, while non-institutional investors subscribed to 60% of their segment.
Company Profile and Financials
Carraro India specializes in manufacturing critical components for agricultural tractors and construction vehicles, including axles, transmission systems, and gears.
The company’s robust financial performance has attracted investor attention, with a profit of ₹60.6 crore reported for the fiscal year ending March 2024, marking a 29.4% increase from the previous year. Revenues for the same period stood at ₹1,770.5 crore.
Future Plans
Proceeds from the IPO are earmarked for expanding the company’s production capabilities and enhancing its product portfolio in the Indian market. The strategic focus aligns with Carraro India’s goal to capitalize on the growing demand for agricultural and construction machinery components in the region.
Market Sentiment
While the listing at a discount may indicate initial caution among investors, industry experts believe Carraro India’s strong financials and growth prospects could bolster confidence in the long term. “The company operates in a niche yet critical segment, and its growth trajectory is promising,” said a market analyst.
Carraro India’s debut reflects both the challenges and opportunities in the Indian stock market, particularly for companies in the manufacturing sector. The coming months will reveal how the company’s stock performs as it navigates market dynamics and executes its growth strategy.
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