New Delhi: Auto component maker Varroc Engineering Ltd has raised Rs584 crore from anchor investors as its initial public offering (IPO) opens on Tuesday 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 finalised allocation of over 60.36 lakh shares to 30 anchor investors at a price of Rs967 apiece, also the upper price band of the offer. At this price, the total proceeds would be around Rs583.73 crore.
Varroc Engineering IPO is open for public subscriptions during 26-28 June. At the upper end of the price band, the public issue will fetch Rs1,955 crore.
The IPO, which has a price band of Rs965-967, 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.