Carraro India's Market Debut Stumbles With 7.52% Decline

Carraro India Ltd shares dropped by 7.52% from their issue price of Rs 704 during their market debut. Initially listed at Rs 660 on the BSE, shares further decreased to Rs 633.30. The company, a subsidiary of Carraro S.p.A, specializes in axles and transmission systems for agricultural and construction vehicles.

Shares of Carraro India Ltd saw a steep decline of 7.52% in their market debut against the original issue price of Rs 704 on Monday.

Initially, the stock was listed at Rs 660, which represents a 6.25% discount from the issue price on the BSE. It plummeted further by 10% to reach Rs 633.30.

On the NSE, Carraro India's stock debuted at Rs 651, marking a 7.52% dip.

The company, which has a market valuation of Rs 3,679.15 crore, saw its IPO subscribed 1.12 times by the last bidding day on Tuesday.

With a price band set between Rs 668-704 per share, the IPO was an Offer-for-Sale (OFS) of Rs 1,250 crore by Carraro International SE, as per the red herring prospectus.

Established in 1997, Carraro India is a subsidiary of Carraro S.p.A., and began producing transmission systems in 1999 and axles in 2000, specializing in engineering solutions for OEMs.

The company is a tier-1 provider focusing on axles and transmissions for agricultural tractors and construction vehicles.

Its two manufacturing plants in Pune are equipped with state-of-the-art technology for various production processes, serving customers both domestically and globally through different branches.

The company's clientele includes major domestic and international OEMs like CNH, TAFE, Mahindra and Mahindra, and John Deere.

(With inputs from agencies.)