Joindre Capital Services is bullish on Varroc Engineering has recommended buy rating on the stock with a target price of Rs 1050 in its research report dated December 21, 2018.
Market leadership, marquee clients, focus on developing technologically advanced products and adoption of LED-based products provide an improved earnings visibility for these companies and therefore merits investors’ attention.
The Rs 1,955-crore initial public offering was oversubscribed 3.59 times during June 26-28, driven by strong interest from institutional investors.
The final issue price of Varroc Engineering is fixed at higher end of price band.
A day ahead of the IPO, the company already raised Rs 583.7 crore from anchor investors.
Two Tata Group entities which are offloading 13.7 per cent stake, or 1.84 crore shares, of the company would garner up to Rs 1,786 crore through the public issue.
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.
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.
Ajcon Global has come out with its report on Varroc Engineering. The research firm has recommended to "Subscribe " the IPO in its research report as on June 25, 2018.
Choice Broking has come out with its report on Varroc Engineering. The research firm has recommended to "Subscribe " the IPO in its research report as on June 23, 2018.
SMC says only high-risk investors should opt for the issue as it looks expensive and given the company's high dependence on its global business. Choice Broking also advises subscribing with caution due to its expensive valuation.
Hem Securities has come out with its report on Varroc Engineering. The research firm has recommended to "Subscribe " the IPO in its research report as on June 25, 2018.
ICICI Direct has come out with its report on Varroc Engineering. The research firm has recommended to "Subscribe " the IPO in its research report as on June 22, 2018.
VEL will not receive any offer proceeds and all proceeds will be received by the selling shareholders
The offer consists of an offer-for-sale to the tune of 20,221,730 equity shares by promoters and existing investors.
The IPO comprises sale offer of up to 18 lakh shares by promoter Tarang Jain, about 1.69 crore shares by Omega TC Holdings Pte Ltd and up to 16 lakh shares by Tata Capital Financial Services Ltd.
The companies, however, declined to comment on the amount being invested and the percentage of stake being picked up. TOF is the second Indian entity to invest in Uber after The Times of India group's Times Internet bought a small stake for about Rs 150 crore in the US-based company in March.
Tarang Jain had come a long way since he set up Varroc in 1990. Back then he hadn‘t hoped to grow so big. But when times are good, there‘s always the fear that things won‘t last forever. And so, while on a high, Jain began to look for answers.