Synopsis

Private equity major Carlyle is preparing a $500 million IPO for Highway Roop Precision Technologies, appointing multiple investment banks as lead managers. The issue, largely an offer for sale, could value the company at $2 billion, as Carlyle looks to monetise its stake in the auto-components platform.

Private equity firm Carlyle has appointed Goldman Sachs, Nomura, JM Financial and Axis Capital as lead managers for the proposed $500 million (about ₹4,700 crore) initial public offering (IPO) of its Indian automotive platform, Highway Roop Precision Technologies, according to multiple people familiar with the development.

The proposed IPO is expected to value Highway Roop at around $2 billion (₹19000 cr). ET had reported last month that Carlyle was preparing to list the company.

The proposed IPO will primarily comprise an offer for sale (OFS), allowing existing shareholders, led by Carlyle, to partially monetise their holdings, sources said.

A Carlyle spokesperson did not respond to the queries.

Carlyle created Highway Roop Precision Technologies in February 2025 by acquiring controlling stakes in Highway Industries and Roop Automotives, two leading manufacturers of forged and precision-machined components, steering system assemblies, transmission parts and other powertrain products used across electric, hybrid and internal combustion engine (ICE) vehicles.

The merged platform continues to be backed by the founding promoters, with Highway Industries founder Umesh Munjal and Roop Automotives founder Mohit Oswal together retaining a 25-30% stake, according to people familiar with the shareholding.

Highway Roop is projected to report revenue of around ₹3,000 crore and EBITDA of about ₹700 crore in FY27, reflecting the benefits of scale and operational synergies following the merger, sources said.

To spearhead the combined business, Carlyle appointed Dharmesh Arora, the former Asia-Pacific chief executive of Schaeffler Group, as CEO in June 2025.

In India, Highway Roop competes with listed precision engineering and auto-component manufacturers including Bharat Forge and Sona BLW Precision Forgings.

In parallel, Carlyle has also initiated the IPO process for its healthcare revenue cycle management (RCM) platform, created through the merger of Knack RCM and EqualizeRCM following their acquisitions by the firm.

One of the most active private equity investors in India, Carlyle has deployed more than $8 billion in the country across investments including PNB Housing Finance, SBI Cards, VLCC, Hexaware Technologies and Nido Home Finance.

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