The Initial Public Offering of Carraro India Limited was subscribed 0.09 times on the first day of bidding.
The issue received bids of 11,24,277 shares against the offered 1,30,98,803 equity shares, at a price band of ₹668-704, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 0.15 times and 0.06 times respectively, whereas Qualified Institutional Buyer Portion is still to see traction. The issue kicked off for subscription on Friday, December 20, 2024, and will close on Tuesday, December 24, 2024.
A day before the opening of the issue, Senores Pharmaceuticals Ltd raised Rs 375 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor included Aditya Birla Mutual Fund, Amudi Fund New Silk Road, Manulife Global Mutal Fund, Master Trust Bank of Japan, HSBC Mutual Fund, UTI Mutual Fund, Motilal Oswal Mutual Fund, Sundaram Mutual Fund, Edelweiss Mutual Fund, Kotak Mahindra Life Insurance Company, Bajaj Alliance Life Insurance Company, LIC Mutual Fund, Bank of India Mutual Fund, Reliance Nippion Life Insurance Company Ltd., Tata AIA Life Insurance Company Ltd., SBI General Insurance Company Ltd., Nuvama Private Investment Trust, JM Financial Mutual Fund, Trust Mutual Fund, ApaH Capital Master Fund, Copthall Mauritius Investment Ltd., Societe Generale.
Leading brokerage firms like Anand Rathi, SBI Securities, Canara Bank Securities, IndSec Securities, and Ventura Securities, have given a “Subscribe” rating to the issue highlighting the company’s leadership as a Tier 1 supplier of axles, transmission systems, and gears for agricultural tractors and construction vehicles in India. The company boasts a competitive moat with mission-critical driveline components, customer-centric solutions, strong R&D capabilities, and proprietary IP rights. At the upper price band of Rs. 704, the IPO is fairly valued at P/E multiples of 45.83x–64.0x and an EV/EBITDA of 31.6x. With a robust CAGR in Revenue/EBITDA/PAT over FY22–FY24 and the domestic agricultural tractor and harvesting equipment industry projected to grow at 8.2%–7.2% CAGR over FY24–FY29E.
Axis Capital Limited, BNP Paribas, and Nuvama Wealth Management Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.