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Last Updated : Jun 28, 2018 05:56 PM IST | Source:

Varroc Engineering IPO oversubscribed 3.56 times on institutional investors support

A day ahead of the IPO, the company already raised Rs 583.7 crore from anchor investors.

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The Rs 1,955-crore initial public offering of auto component maker Varroc Engineering has been oversubscribed 3.56 times on Thursday, the final day for subscription, driven by strong interest from institutional investors.

The public issue has received bids for 5.05 crore equity shares against offer size of 1.4 crore shares (excluding anchor investors' portion), as per data available on the exchanges.

The portion set aside for qualified institutional buyers has been subscribed 9.15 times while non-institutional investors witnessed a subscription of 2.45 times and retail investors 88 percent.

The initial public offer (IPO), for which the company has set a price band of Rs 965-967 per share, consists of an offer-for-sale of 2,02,21,730 equity shares by promoter Tarang Jain and existing investors which are Tata Group companies - Tata Capital Financial Services and Omega TC Holdings.

Tata Capital Financial Services and Omega TC Holdings will offload up to 1,69,17,130 equity stocks (representing 12.55 percent stake) and Tata Capital will divest up to 15,52,040 shares (1.15 percent). Tata Group intends to raise Rs 1,786 crore through the public issue.

Varroc's IPO opened on June 26. The company is going to raise Rs 1,955 crore at upper end of price band, through public issue. A day ahead of the IPO, the company already raised Rs 583.7 crore from anchor investors.

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 other anchor investors.

Founded in 1990 in Aurangabad (Maharashtra), Varroc Engineering is an automotive component manufacturer and supplier of exterior lighting systems, power-trains, electrical and electronics, body and chassis parts to passenger cars and motorcycle segments worldwide.

It supplies auto parts to Jaguar Land Rover, Bentley, Audi and Harley Davidson. Besides, it supplies auto parts to giants such as Volkswagen, Ford, Honda and Bajaj Auto.

Kotak Mahindra Capital, Citigroup Global Markets India, Credit Suisse Securities India and IIFL Holdings are the book running lead managers to the issue.
First Published on Jun 28, 2018 04:31 pm
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