Carlyle Prepares $400 Million IPO for Auto Component Platform Highway Roop Precision Technologies

Global alternative asset management firm Carlyle Group Inc. has initiated preparations for an initial public offering (IPO) of its Indian auto-component platform, Highway Roop Precision Technologies. The planned public offering could raise between $400 million and $500 million, positioning the business at an estimated equity valuation of around $2 billion.

The transaction is expected to consist primarily of an offer for sale (OFS), allowing Carlyle to partially monetise its controlling stake alongside existing shareholders. Investment banking houses including Goldman Sachs, Nomura, JM Financial, and Axis Capital have been engaged to steer the listing process on the Indian bourses.

Formation of the Auto Component Platform

Carlyle established Highway Roop Precision Technologies in February 2025 after acquiring a controlling interest of roughly 65% to 70% in two established domestic parts makers—Highway Industries Ltd. and Roop Automotives Ltd.—in a consolidated transaction valued at approximately $400 million.

Founding promoters Umesh Munjal of Punjab-based Highway Industries and Mohit Oswal of Haryana-based Roop Automotives retained a combined 25% to 30% holding following the transaction. To scale the combined entity, Carlyle appointed Dharmesh Arora, former Asia-Pacific chief executive of Schaeffler Group, as CEO.

The combined enterprise manufactures precision-machined parts, steering assemblies, transmission components, and powertrain systems across electric vehicles (EV), hybrid setups, and internal combustion engine (ICE) platforms. Nearly 60% of the platform's revenue base is derived from export markets, catering to tier-1 automotive suppliers and original equipment manufacturers globally.

Key Deal and Platform Metrics:

• Estimated IPO Size: Approximately $400 million to $500 million
• Target Valuation: Up to $2 billion (around ₹16,000–₹19,000 crore)
• Deal Structure: Predominantly an Offer for Sale (OFS)
• Key Listed Peers: Bharat Forge Ltd. and Sona BLW Precision Forgings Ltd. (Sona Comstar)

Replicating the PE Roll-Up Playbook

The listing blueprint mirrors private equity aggregation strategies successfully executed in India's auto-ancillary space. Notably, Blackstone previously merged Comstar Automotive Technologies with Sona BLW to build Sona BLW Precision Forgings, creating an export-oriented EV component giant that executed a marquee listing before Blackstone engineered a profitable full exit.

Highway Roop competes directly with leading domestic manufacturers including Bharat Forge and Sona BLW. With global automakers pursuing "China-plus-one" sourcing strategies and stepping up components localization, Indian auto-ancillary companies have continued to command healthy valuation multiples.

Carlyle has deployed more than $8 billion in India across sectors, with historic exits such as SBI Cards, where it generated substantial returns through phased public-market sell-downs. Alongside Highway Roop, the private equity firm is also laying the groundwork for public listings across its healthcare billing and technology portfolio in India.

Tags: Carlyle Group Highway Roop Precision Technologies Auto Components BSE NSE SEBI