GS, Nomura, and Axis Appointed as Lead Managers for Carlyle’s India Automotive Platform IPO
Private equity firm Carlyle is set to launch an initial public offering (IPO) for its Indian automotive platform, Highway Roop Precision Technologies, aiming to raise approximately $500 million (around ₹4,700 crore). The IPO is anticipated to give Highway Roop an estimated valuation of $2 billion (approximately ₹19,000 crore). Carlyle has engaged top-tier investment banks including Goldman Sachs, Nomura, JM Financial, and Axis Capital as lead managers for this offering. The completed IPO will primarily consist of an offer for sale (OFS), enabling existing shareholders, primarily Carlyle, to partially cash out their investments.
The sentiment surrounding the grey market indicates a cautious yet optimistic outlook for the IPO. While specific figures regarding the grey market premium have yet to be disclosed, the interest in Highway Roop is bolstered by its expected revenue of ₹3,000 crore and an EBITDA of about ₹700 crore by FY27. This projected financial performance, enhanced by operational synergies following the merger of Highway Industries and Roop Automotives, underscores the company’s potential for growth in a competitive market that includes established players like Bharat Forge and Sona BLW Precision Forgings.
For Indian investors, the upcoming IPO represents a significant opportunity to tap into the expanding automotive sector, especially as Highway Roop is positioned to cater to the increasing demand for components across electric, hybrid, and internal combustion engine vehicles. Carlyle’s reputation as an active private equity investor in India, with substantial capital infusion into various sectors, further adds credibility to the offering. As investors weigh the prospects of Highway Roop against existing market players, the anticipated listing could set a positive precedent for future IPOs in the rapidly evolving automotive landscape.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)