Carlyle Hires Goldman Sachs, Nomura, Axis for $500M India Auto IPO

MUMBAI, India — Global private equity major Carlyle Group has appointed Goldman Sachs, Nomura, Axis Capital, and JM Financial as lead book-running managers for the proposed $500 million (approximately ₹4,700 crore) initial public offering (IPO) of its Indian automotive platform, Highway Roop Precision Technologies, according to market sources familiar with the matter.

The transaction, expected to value the auto-components maker at approximately $2 billion (₹19,000 crore), represents one of the largest private-equity backed public offerings in India’s automotive supply chain sector. The planned listing comes amid sustained capital market liquidity in India and accelerating institutional investor interest in precision engineering and powertrain manufacturing.

Monetization and Platform Structure

The proposed public issue will primarily consist of an Offer for Sale (OFS), allowing Carlyle to partially monetize its holding in the enterprise.

Carlyle established Highway Roop Precision Technologies in February 2025 by acquiring controlling stakes in two major domestic component manufacturers:

• Highway Industries: Specialist in forged and precision-machined structural parts.

• Roop Automotives: Manufacturer of steering system assemblies and powertrain components.

The founding promoters—Highway Industries founder Umesh Munjal and Roop Automotives founder Mohit Oswal—retain a combined minority equity stake of 25% to 30% in the consolidated entity. In June 2025, Carlyle appointed Dharmesh Arora, former Asia-Pacific chief executive of Schaeffler Group, to lead the integrated platform as Chief Executive Officer.

Market Positioning and Financial Projections

Highway Roop manufactures precision engineering products used across electric vehicles (EV), hybrid systems, and conventional internal combustion engine (ICE) platforms.

According to financial estimates cited by market sources, the combined entity is projected to report annual revenue of around ₹3,000 crore and EBITDA of approximately ₹700 crore for fiscal year 2027, driven by scale efficiencies and post-merger operational integration. Upon listing, Highway Roop will join a peer group of domestic precision component manufacturers, including Bharat Forge and Sona BLW Precision Forgings.

Official Sources Section

Information regarding lead manager mandates, operational structure, and capital deployment metrics has been drawn from market disclosures and reports originally verified by The Economic Times and secondary regulatory context from the Securities and Exchange Board of India.

Quote Section

According to individuals familiar with the transaction details, lead managers are working to finalize draft red herring prospectus (DRHP) documents to align with regulatory timelines set by India's market regulator. A spokesperson for Carlyle declined to comment on ongoing manager appointments or specific public filing schedules.

Why It Matters

The mandate underlines private equity's growing focus on consolidating fragmented manufacturing supply chains in India into institutional-scale platforms. For public investors, the listing expands access to auto-component suppliers aligned with electric vehicle and hybrid powertrain shifts. For capital markets, it confirms international investment banks' active participation in domestic secondary exits.

Key Facts at a Glance

• Lead Bankers: Goldman Sachs, Nomura, Axis Capital, and JM Financial appointed as book managers.

• Offering Structure: Expected $500 million public issue consisting primarily of an Offer for Sale (OFS).

• Target Enterprise Value: Estimated at $2 billion (₹19,000 crore).

• Founding Stake: Promoters Umesh Munjal and Mohit Oswal retain 25%–30% combined equity.

Frequently Asked Questions (FAQ)

What is Highway Roop Precision Technologies?

Highway Roop Precision Technologies is an Indian automotive component platform created by Carlyle in February 2025 through the merger of Highway Industries and Roop Automotives.

Who are the investment banks managing the IPO?

Carlyle has mandated Goldman Sachs, Nomura, Axis Capital, and JM Financial to lead the transaction.

How much does Carlyle plan to raise through the listing?

The proposed initial public offering aims to raise approximately $500 million (₹4,700 crore), primarily via an Offer for Sale (OFS).

Who is the CEO of Highway Roop Precision Technologies?

Dharmesh Arora, former Asia-Pacific Chief Executive of Schaeffler Group, was appointed as CEO of the consolidated platform in June 2025.

Source: Official market briefings, company history, and reports originally published by The Economic Times and The Carlyle Group.