Carraro India IPO listing date today. Here’s what GMP, experts indicate

Carraro India share price listing: Shares of engineering solutions provider firm Carraro India are set to debut on the Indian stock exchanges on Monday, December 30, after the successful completion of the ₹1,250 crore initial public offering (IPO), which opened for subscription on Friday, December 20, and concluded on Tuesday, December 24. The mainboard issue was subscribed about 1.2 times, with the retail portion subscribed 75 per cent. The segment reserved for non-institutional investors was booked 63 per cent and the qualified institutional buyers’ segment was subscribed 2.33 times.

According to SEBI’s T+3 rule, a stock must be listed on the exchanges after three business days from the IPO closing date. So, the stock is to be listed on the BSE and the NSE today, i.e. Monday, December 30. Accordingly, share allotment was finalised on T+1, i.e. Thursday, December 26. Meanwhile, grey market trends show the stock could be listed at a significant premium.

Carraro India IPO GMP

According to market sources, the current grey market premium (GMP) of Carraro India IPO is nil, indicating that the issue could be listed as being on par with the issue price on the BSE and NSE. As the issue price of the stock was ₹704 per share, the estimated listing price of the stock is ₹704.

What should investors do?

The company primarily designs, manufactures, and markets transmission systems (axles, transmissions, and drives) for off-highway vehicles used in construction and agriculture. Additionally, it provides a large selection of gear for various industries, such as trucks, construction vehicles, and agriculture.

For the financial year ended March 31, 2024, its revenue increased by 4 per cent year over year (YoY) and net profit by 29 per cent YoY.

Analysts do not appear bullish about the stock at the current juncture.

Abhishek Pandya, a research analyst at StoxBox, suggests booking profits if the stock lists at a premium.

“For those who received shares, we suggest booking profits if there is a premium upon listing while closely tracking the company’s performance in the future,” said Pandya.

“We are also cautious about this issue due to its relatively high valuation compared to its peers. Additionally, there are concerns regarding the aggressive dilution of promoter holdings following the listing,” said Pandya.

Expecting a flat to negative listing of Carraro India IPO, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The public issue received a dull response from the retail investors, which was due to the higher valuations of the company shares. That is expected to happen post-listing also. However, the primary market looks overcrowded due to the strong debut of recently listed shares, especially last week. In that case, the public issue may get a flat listing. However, I won’t be surprised if the share lists at a discounted price even when the primary market is overcrowded.”

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