Varroc Engineering IPO receives 33% subscription on Day 1

Varroc Engineering, which supplies auto parts to Jaguar Land Rover, Bentley, Audi and Harley Davidson plans to raise Rs 1,955 crore ($287.46 million) via the IPO.

By BusinessToday.In  
Wednesday, June 27, 2018

Auto component maker Varroc Engineering's initial public offer IPO was subscribed 33 per cent on the first day of the bidding on Tuesday. The IPO garnered bids for 46,18,470 shares against the total issue size of 1,41,85,212 shares, NSE data showed. The portion set aside for qualified institutional buyers (QIBs) was subscribed 1.04 times, non-institutional investors 1 per cent and retail investors 5 per cent, according to the exchange data.

Tata Group is selling shares worth Rs 1,786 crore in the IPO.

Varroc Engineering, which supplies auto parts to Jaguar Land Rover, Bentley, Audi and Harley Davidson plans to raise Rs 1,955 crore ($287.46 million) via the IPO.

The IPO has been launched in a price range of Rs 965 to Rs 967 per share. The offer consists of an offer-for-sale to the tune of 20,221,730 equity shares by promoters and existing investors.

While promoter Tarang Jain will sell up to 1,752,560 shares, investor Omega TC Holdings will sell up to 16,917,130 equity shares and Tata Capital will sell up to 1,552,040 shares.

The offer also includes a reservation of 1,00,000 shares for employees, at a discount of Rs 48 a share. The net offer aggregates up to 20,121,730 equity shares and together constitutes 15 per cent and 14.93 per cent, respectively, of the post-offer paid-up equity share capital.

Kotak Mahindra Capital, Citigroup Global Markets India, Credit Suisse Securities (India) are global co-ordinators and bookrunners for the offer, which closes on June 28.

The auto component maker raised Rs 584 crore from anchor investors on Monday.

Nomura, Canadian pension fund CDPQ, Smallcap World Fund Inc, Nomura Fund Ireland Public Ltd, DSP BlackRock, ICICI Prudential Mutual Fund and SBI Mutual Fund are among the anchor investors, the company informed the stock exchanges.

The company's IPO committee has finalised allocation of over 60.36 lakh shares to 30 anchor investors at a price of Rs 967 apiece, also the upper price band of the offer. At this price, the total proceeds would be around Rs 583.73 crore.

Founded in 1990 in Aurangabad, Varroc is a global automotive component manufacturer and supplier of exterior lighting systems, power-trains, electrical and electronics, body and chassis parts to passenger car and motorcycle segments worldwide.

Varroc Engineering designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components worldwide. It operates through Polymer, Electrical, Engine Valve, Forged Components, and Lighting segments.

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