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Varroc Engineering garners Rs 584 cr from anchor investors; IPO opens

Auto component maker Varroc Engineering has raised Rs 584 crore from anchor investors as its initial share sale opens today for public subscription.

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 finalized 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.

Varroc Engineering’s IPO is open for public subscriptions during June 26-28. At the upper end of the price band, the public issue will fetch Rs 1,955 crore.

The initial public offer (IPO), for which the company set a price band of Rs 965-967, 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 up, investor Omega TC Holdings will offload up to 16,917,130 equity shares and Tata Capital will divest up to 1,552,040 shares.

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 car and motorcycle segments worldwide.

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

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