Today at the Mumbai Stock Exchange, a ceremony was held to mark the start of trading in the shares of Carraro India Limited. It was performed in the presence of Tomaso Carraro, Vice-Chairman of the Group and of Carraro India, and Balaji Gopalan, Managing Director of Carraro India, as well as the Italian Consul General in Mumbai, Walter Ferrara. As a result, 31.2% of its subsidiary Carraro India was placed on the Mumbai Stock Exchange.
Founded in 1997, Carraro India was the first step in the internationalization plan of the Carraro Group. The company started its activities with the production of transmission systems in 1999 and axles in 2000, specializing in complex engineering products and solutions for some of the most important manufacturers of agricultural and construction machinery.
Enrico Carraro, chairman of the Carraro Group, said in a press release: "This is an important step forward in our internationalization process, in line with the 'local for local' strategy we have adopted in every part of the world. Carraro India is an example of excellence for us. We arrived in Pune in the late 1990s and have gradually grown here, entrusting the management of our two plants and an R&D center to local management. It has been a successful decision that has paid off over the years with significant results, not least because India is now our leading market in terms of total sales. At the same time as developing our local activities, this operation will further strengthen the capital structure of our Group, with the aim of guaranteeing new room for growth in the future."
Tomaso Carraro, Vice Chairman of the Carraro Group and Vice Chairman of Carraro India, added: 'This has been a successful transaction. The listing reflects our confidence in our growth potential and capabilities. India is indeed a very interesting market, especially in the agricultural sector, where the country is undergoing a major technological evolution to meet the challenges of food security and climate change. Indeed, the industry is moving away from low power two-wheel drive tractors to higher power four-wheel drive models that offer greater efficiency and productivity. And at Carraro, we are well prepared to meet this growing demand.
Technical details of the transaction include:
- The placement capitalization of the Indiana subsidiary at placement is €450 million.
- The 31.2% offer represents a gross consideration of €140 million.
