Goldman Sachs, Nomura, Axis to lead Carlyle's Highway Roop IPO

Private equity firm Carlyle has enlisted Goldman Sachs, Nomura, and Axis Bank as lead managers for the planned initial public offering of Highway Roop Precision Technologies, according to the announcement. The IPO is expected to raise approximately $500 million, with the issue structured largely as an offer for sale rather than fresh capital issuance. The transaction is anticipated to value Highway Roop at around $2 billion, reflecting Carlyle's valuation of its stake in the automotive components platform.

The offering marks a significant monetisation event for Carlyle in India's automotive sector, allowing the private equity investor to partially or fully exit its position in the company. Highway Roop Precision Technologies operates within India's growing automotive supply chain ecosystem, which has attracted substantial foreign investment in recent years. The IPO comes as Indian capital markets remain active for large-scale offerings, particularly in the industrial and manufacturing sectors. The appointment of multiple internationally recognised investment banks alongside a domestic player like Axis Bank suggests a strategy to attract both foreign and domestic institutional investors. The transaction demonstrates continued confidence in India's automotive components sector and the broader industrial growth narrative, even as markets navigate macroeconomic uncertainties. Carlyle's divestment through the public markets provides investors with exposure to India's automotive supply chains at a critical juncture of domestic manufacturing expansion and rising vehicle production.

Source: Markets-Economic Times