Carraro India Share Price Slides as Lock-In Period Ends – 2.8 Crore Shares Now Eligible for Trade

Market Performance

Carraro India's share price declined by over 1% to ₹434 on Thursday, June 26, following the end of a key lock-in period for pre-IPO shareholders.

• The stock had closed at ₹441 the previous day.
• This comes after a 3% rebound seen on Wednesday.
• Despite short-term gains, the share price remains down nearly 40% from its IPO issue price of ₹704.
• As of the end of 2025, the stock has declined by over 30%.

Main News

The recent dip in Carraro India's share price follows the expiration of the shareholder lock-in period. As a result, approximately 2.8 Crore shares, or 49% of total outstanding equity, are now available for trading in the open market.

• At the closing price of ₹441 on Wednesday, the potential value of this newly tradable stock amounts to ₹1,234 Crore.
• The end of the lock-in period doesn't mandate an immediate sell-off but increases the available float.

This development marks a crucial point for market watchers as the company's stock continues to attempt recovery from its post-IPO slump.

Company Details

Carraro India Ltd operates in the auto components sector, primarily supplying drivetrain systems. The company made its public market debut on December 30, listing at a 7.5% discount from the IPO issue price.

• The IPO consisted solely of an Offer for Sale (OFS) by Carraro International SE, amounting to ₹1,250 Crore.
• No fresh equity was issued as part of the listing process.
• The offering was fully subscribed by the final day, led by Qualified Institutional Buyers (QIBs).

Revenue & Business Outlook

While recent market movements have impacted the Carraro India share price, the company has outlined its strategic growth targets:

• Aim for ₹3,100 Crore in revenue by 2030.
• Plans to enhance margins by 100 basis points annually over the next three years.
• Management has indicated a stable margin outlook for FY26, consistent with the margin outlook for the previous fiscal year.

Although growth targets were shared in an earlier interaction with the media, the immediate market sentiment is more influenced by trading dynamics due to the lock-in expiry.

Summary of the Article

Carraro India's share price edged down as the lock-in period for pre-IPO shareholders came to an end, making 49% of the company's shares tradable on the market. While the market adjusts to this increase in float, the company's shares remain significantly below their issue price. With a history of volatile performance following its listing, all eyes are now on how the stock navigates this new liquidity phase.