RJ Kesari News Desk: According to reports, the company is targeting an issue size of $400–500 million as it looks to capitalize on India's rapidly expanding passenger vehicle market, particularly the growing demand for sunroof-equipped cars.

The proposed IPO could value Webasto Roofsystems India at nearly $2 billion, making it one of the significant public offerings expected in India's automotive component sector.

Strong Demand for Sunroof Cars Driving Expansion

India has witnessed a sharp increase in demand for passenger vehicles equipped with sunroofs, especially in the SUV and premium hatchback segments. To meet this growing demand, Webasto is significantly expanding its manufacturing capacity in the country.

Along with its existing manufacturing facilities in Pune and Chennai, the company is setting up a new production plant in Haryana, which is expected to begin operations during the December quarter.

The upcoming facility, located between Manesar and Kharkhoda, is expected to have an annual production capacity of nearly 500,000 units.

Axis Capital and JM Financial Likely to Manage the IPO

According to people familiar with the development, Axis Capital and JM Financial have been appointed to manage the proposed IPO process.

Webasto is one of the world's leading manufacturers of openable roof systems and supplies automotive components to several leading carmakers operating in India, including:

• Mahindra & Mahindra
• Tata Motors
• Hyundai Motor India
• Kia India

The company has established itself as a key supplier in India's growing automobile industry.

Strong Financial Performance in FY2025

Webasto Roofsystems India reported impressive financial growth during FY2025.

Key financial highlights include:

• Revenue: Increased from ₹720 crore in FY2024 to ₹946.5 crore, registering growth of around 31%.
• Net Profit: Recovered from a ₹9.1 crore loss in FY2024 to a ₹31.4 crore profit in FY2025.
• EBITDA: Jumped from ₹36 crore to nearly ₹102 crore, reflecting improved operating efficiency and stronger margins.

The company's improving financial performance is expected to strengthen investor interest ahead of the proposed IPO.

Over $110 Million Already Invested in India

Since entering the Indian market in 2019, Webasto has invested more than $110 million to expand its operations.

The company has announced plans to increase its total investment in India to approximately $174 million by FY2030, underlining its long-term commitment to one of the world's fastest-growing automotive markets.

Global Business Performance

Webasto Group reported global revenue of approximately €4 billion during FY2025, although revenue declined by 7.4% compared to the previous year.

Regional revenue contribution included:

• Europe: 35%
• Americas: 28%
• China: 18%
• Asia-Pacific: 19%

The company's Roof Systems business remained its largest revenue contributor, accounting for nearly 79% of total revenue.

India's Automotive IPO Pipeline Continues to Grow

Webasto's proposed public issue comes at a time when India's automotive and auto-component sector is witnessing increasing IPO activity.

Several companies are looking to raise capital amid rising domestic demand, improving exports, and growing investor confidence in India's manufacturing sector.

According to reports, Highway Roop Precision Technologies, backed by private equity firm Carlyle, is also planning an IPO worth around $500 million by 2027, with an expected valuation of nearly $2 billion.

Recent automotive IPOs include:

• Belrise Industries, which raised ₹2,150 crore through its IPO in 2025.
• Carraro India, the Indian arm of the Italian transmission and axle manufacturer, which was listed in 2024.

Why the Webasto IPO Matters

The proposed Webasto India IPO reflects growing investor confidence in India's automotive sector, particularly in premium vehicle components such as sunroof systems.

With rising vehicle sales, expanding manufacturing capacity, and strong financial performance, the company is positioning itself for long-term growth while offering investors another opportunity to participate in India's fast-growing auto component industry.