Carraro India is set to start trading its shares on Monday. Before their debut, the shares have shown no extra value in the grey market, which is where unlisted company shares are bought and sold. This means that if trends continue, the stock may have a quiet start at around Rs 704, which is the highest price set for its shares. However, grey market prices can change quickly, so they’re not a foolproof indicator.
The company’s initial public offering (IPO) managed to attract a good number of investors, being oversubscribed by 1.18 times by the end of the bidding on the last day. The IPO raised Rs 1,250 crore, all from the sale of existing shares. This money will go directly to the people selling those shares, not to the company itself.
Looking ahead, while 2024 may have its ups and downs, experts believe Carraro India has a bright future. The company makes parts that go into tractors and construction vehicles. They produce important components like axles and transmission systems, as well as various gears for cars and trucks.
Carraro India has two big factories in Pune, covering large areas for making driveline and gear products. Their sales went up by 4% from last year, reaching Rs 1,770 crore, with profits jumping 29%.
Axis Capital, BNP Paribas, and Nuvama Wealth Management helped manage the IPO, while Link Intime India took care of share registrations.
(Disclaimer: The opinions and insights here are those of experts and do not reflect the views of NiftyStat.)
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