Auto parts manufacturer Varroc Engineering made a strong listing on the stock exchanges clocking over 5% gains over its issue price. At 10:07 am, the stock was trading 5.38% or 52 points higher at 1019 level compared to Rs 967 per share issue price. The stock opened at 1032 level on the BSE.
The issue was subscribed 3.59 times on June 29, the last day of the IPO. Bids for 5,09,62,695 shares were received against the total issue size of 1,41,85,212 shares, data showed.
The IPO was launched on June 26 in a price range of Rs 965 to Rs 967 per share. At the upper end of the range, the IPO would raise about Rs 1,955 crore ($287.46 million). The offer consisted of an offer-for-sale to the tune of 20,221,730 equity shares by promoters and existing investors.
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) were the global co-ordinators and bookrunners for the offer, which closes on June 28.
Varroc Engineering, which supplies auto parts to Jaguar Land Rover, Bentley, Audi and Harley Davidson, KTM, Bajaj Auto, Land Rover and General Motors raised Rs 584 crore from anchor investors including Canadian pension fund CDPQ and Smallcap World Fund.
Nomura, Canadian pension fund CDPQ, Smallcap World Fund Inc, Nomura Fund Ireland Public Ltd, DSP BlackRock, ICICI Prudential Mutual Fund and SBI Mutual Fund were among the anchor investors, the company informed the stock exchanges.
The company's IPO committee 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.