Varroc Engineering IPO subscribed 33% on Day 1

The other IPO which also received huge responses were Happiest Minds Technologies and Chemcon Speciality Chemicals, which was subscribed 150.98 times and 149.3 times respectively. Interestingly, both these stocks have seen bumper listing gained over 100 percent. Let's see how the IPO subscription and listing happened in 2020 so far, considered only IPOs issue size over Rs 100 crore.

Auto component maker Varroc Engineering's initial public offer to raise Rs 1,955 crore was subscribed 33 per cent on the first day of the bidding today. The IPO received bids for 46,18,470 shares against the total issue size of 1,41,85,212 shares, data available with the NSE 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, has already raised Rs 584 crore from anchor investors including Canadian pension fund CDPQ and Smallcap World Fund Inc.

The initial public offer (IPO) consists an offer-for-sale to the tune of 2,02,21,730 shares by promoter Tarang Jain and existing investors.

Price band for the offer has been set at Rs 965-967 per share.

While the promoter will sell up to 17,52,560 shares, Tata Group entities -- Tata Capital Financial Services and Omega TC Holdings -- will offload a total of 1.84 crore stocks, amounting to 13.7 per cent stake.

Omega TC will offload up to 1,69,17,130 equity stocks (amounting to 12.55 per cent stake) and Tata Capital will divest up to 15,52,040 scrips or 1.15 per cent holding. Tata Group will garner Rs 1,786 crore through the public issue.

The IPO will close on June 28. At the upper end of the price band, the issue will fetch Rs 1,955 crore.

Founded in 1990 in Aurangabad, Varroc 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.

Kotak Mahindra Capital, Citigroup Global Markets India, Credit Suisse Securities India and IIFL Holdings are managing the issue.