Carraro India IPO Anchor Allocation at 30%

Carraro India IPO saw a robust response from anchor investors, with 30% of the total IPO size subscribed by them. Out of the 1,77,55,680 shares on offer, anchor investors picked up 53,26,703 shares, reflecting strong confidence in the company’s prospects. The anchor allocation details were disclosed to the stock exchanges on December 19, 2024, ahead of the IPO opening on December 20, 2024.

The book-built issue of ₹1,250 crores is entirely an offer for sale of 1,77,55,680 shares. The Carraro India IPO price band is set at ₹668 to ₹704 per share, with a face value of ₹10 per share. The minimum investment required by retail investors is ₹14,784, equivalent to one lot of 21 shares.

The anchor allocation process, conducted on December 19, 2024, saw substantial interest from institutional investors, with the entire allocation made at the upper end of the price band, ₹704 per share. This underscores the strong demand for the company’s shares and highlights confidence in its operational and financial strength.

The overall allocation of Carraro IPO reservation across categories is as follows:

Notably, the 53,26,703 shares allocated to anchor investors were deducted from the Qualified Institutional Buyers (QIB) quota, ensuring compliance with regulatory norms and maintaining a balanced distribution.

The lock-in period for anchor investors is an essential mechanism to stabilize the stock price post-listing. For Carraro India IPO, the lock-in details are as follows:

• 50% of Shares Lock-In Period: January 25, 2025
• Remaining Shares Lock-In Period: March 26, 2025

These lock-in requirements ensure that anchor investors retain their holdings for a specified duration, providing stability to the stock’s performance after listing.
 

Anchor Investors in Carraro IPO

Anchor investors play a pivotal role in boosting market confidence and aiding price discovery during an IPO. On December 19, 2024, Carraro India IPO completed its anchor allocation process, raising ₹375 crores by allotting 53,26,703 shares to anchor investors at the upper price band of ₹704 per share. The anchor allocation witnessed participation from prominent institutional investors, showcasing their faith in the company’s potential.

Out of the total anchor allocation, 51.47% (27,41,634 shares) were allocated to domestic mutual funds through 18 schemes. This overwhelming response from key investors highlights the company’s credibility and strong market positioning.

Key IPO Details:

• IPO Size: ₹1,250 crores
• Shares Allocated to Anchors: 53,26,703
• Anchor Subscription Percentage: 30%
• Listing Date: December 30, 2024
• IPO Opening Date: December 20, 2024

About Carraro India Limited and How to Apply for Carraro IPO

Incorporated in 1997, Carraro India Limited is a leading manufacturer of transmission systems (axles, transmissions, and drives) primarily for agricultural and construction vehicles. The company also produces a wide range of gears for various sectors, including automotive and off-highway vehicles.

Carraro India operates two state-of-the-art manufacturing facilities in Pune, Maharashtra, specializing in advanced technologies such as casting, machining, assembly, and heat treatment processes. These capabilities have established Carraro India as a trusted Tier-1 supplier to major OEMs in India and globally.

As of September 30, 2024, Carraro India has an extensive network of 220 domestic suppliers and 58 international suppliers. Its focus on innovation and customer-centric solutions has made it a key player in the agricultural and construction equipment sectors.

Retail investors can bid for a minimum lot size of 21 shares within the price band of ₹668 to ₹704 per share.

Applications can be made through online trading platforms or registered brokers. For detailed steps, refer to the Red Herring Prospectus (RHP).