Varroc Engineering IPO subscribed 33% on day one

The initial public offer (IPO) for the Aurangabad-based automative parts manufacturer Varroc Engineering Ltd which opened on Monday was subscribed 33% on the first day of issue, according to NSE data.

The offer for sale for more than 2.02 crore equity shares is available at a price band of Rs 965 - Rs 967 per equity share.

On the NSE, the issue was subscribed 0.20 times by qualified institutional investors (QIBs) and 0.02 times by retail buyers by 5pm on Tuesday.

The issue will remain open till June 28, and can be subscribed to in a lot size of 15 equity shares, and in multiples thereafter.

Varroc has raised over Rs 583 crore from the sale of 6,036,518 equity shares to 30 anchor investors at Rs 967 apiece, the company said in a filing to the stock exchanges on Monday.

Anchor investors who have bought the shares include international funds such as DSP BlackRock, Nomura Fund Ireland Plc, Schroder International Selection Fund, and domestic investors such as ICICI Prudential, L&T mutual fund, Kotak Mutual Fund and SBI Mutual Fund.

Varroc is a leading global passenger car lighting supplier, and is one of the top 2-wheeler automative components supplier in India. The company is an OEM (original equitment maker) for international companies such as Bentley, Vokswagen, Audi, General Motors, Harley Davidson, KTM and domestic brands including Bajaj Auto and Tata Motors.