Varroc Engg IPO to hit markets on June 26

The IPO listings are back in action in the Indian equity market. Latest to announce its IPO offering is Maharashtra-based auto parts manufacturer Varroc Engineering.

The Initial Public Offering (IPO) is for 2,01,21,730 equity shares of the face value Rs. 1 each. The price band for the IPO is fixed at Rs. 965 to 967 per share, with a minimum bid lot size of 15 equity shares. The value of the IPO offering at its upper band is Rs. 1,945.77 crore.

The IPO opens on June 26, 2018 and closes on June 28. The Book Running Lead Manager of the offer are Kotak Mahindra Capital, Citigroup Global Markets India, Credit Suisse Securities (India) and IIFL Holdings Limited.

The objective of the IPO is to enhance the visibility of the company and gaining benefits of listing. Other than that, the company will not receive any proceeds for the IPO. Through the IPO promoter and investors will divest 15 per cent stake. Promoter Tarang Jain will offload up to 18 lakh shares, while Omega TC Holdings Pte Ltd will sell 1.69 crore shares and Tata Capital Financial Services will offload 16 lakh shares.

Varroc Engineering Private Limited was incorporated on May 11, 1988 in Mumbai. The company supplies directly to original equipment manufacturers (OEMs). The company manufactures exterior lighting systems, plastic and polymer components, electricals/electronics components and precision metallic parts for four-wheeler, two-wheeler, three-wheeler and other off highway vehicles, globally. From FY2015 to FY2017, the company's revenue grew at a CAGR of 17.57 per cent.