Varroc Engineering Limited IPO, Varroc Engineering IPO Details

By | July 6, 2018

Varroc Engineering Limited IPO, Varroc Engineering IPO Details, VEL IPO

Tier-1 automotive component group Varroc Engineering Limited is going to launch its Initial Public Offering (IPO) for the subscription on Tuesday, 26th June 2018. The subscription period will end on Thursday, 28th June 2018. The company has already set the price band of its IPO and it is between Rs. 965 to Rs. 967 per equity share. The company has also given a discount of Rs.48/- per equity share to its employees. So, those who are the eligible employees of the company will get discount. It is a Book Building issue where the company is selling 20,221,730 Equity Shares of the face value of Rs. 1.

Investors need to download the DRHP for all details. Scroll down and get all relevant and important information about this IPO. 

Varroc Engineering IPO

Varroc Engineering Limited IPO

Varroc Engineering Limited IPO

About the company:

  • Varroc Engineering Limited was incorporated in 1988 and it is based in Aurangabad.
  • It is a global tier-1 automotive component group.
  • It designs, manufactures and supplies exterior lighting systems, powertrains, electrical and electronic parts, and plastic & polymer body, chassis parts, and precision metallic components.
  • It supplies its products to both India and abroad and It is the largest global manufacturers of lighting systems.
  • It has 36 manufacturing and R&D centers spread across seven countries (India, China (through its China JV), Czech Republic, Poland, Mexico, Germany and the US.).
  • It supplies its products to big companies such as Tesla, Jaguar Land Rover, Royal Enfield, Yamaha etc.

Company Promoters: Tarang Jain

About the IPO

  • The price band of the IPO is between Rs. 965 to Rs. 967 with a face value of Rs. 1.
  • Bids can be made for a minimum lot of 15 Equity Shares and in multiples thereof.
  • The company wants to raise Rs 1,955.4 crore at the upper end of the price band.
  • It is an offer for sale (OFS) of 2,02,21,730 equity shares.
  • Promotes, Investors and selling shareholders will offload their shares via this IPO.
  • Promoters’ stake in the company will come down to 85% from 86.3%.
  • Tata Capital Financial Services Ltd which holds 13.74% and Singapore-based Omega TC Holdings Pte Ltd which holds 1.26% will exit via this IPO.
  • The company is backed by backed by Tata Opportunities Fund.

Objects of the Issue

  • To carry out the Offer for Sale (OFS) by Selling Shareholders.
  • Enhance the visibility and brand image of the company.
  • Provide liquidity to the existing Shareholders.
  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges
Note: The issue is an Offer for Sale (OFS) and the company will not receive any proceeds from the Offer as all the proceeds will go the Selling shareholders.

Varroc Engineering IPO, Allotment, Price, Lot Size, Dates, Subscription, Listing

NameVarroc Engineering Limited
Open Date26 Jun 2018
Close Date28 Jun 2018
Allotment Date04 Jul 2018
Refund Date05 Jul 2018
Listing Date06 Jul 2018
Issue PriceRs. 965 – Rs. 967 Per Equity Share
DiscountRs.48/- per Equity Share for Eligible Employees category
Lot Size15 Shares
Minimum Order Quantity15 Shares
Issue TypeBook Built Issue IPO
Issue SizeInitial Public offer of 20,221,730 Equity Shares (including anchor portion of 6,036,518 Equity Shares)
Global Co-ordinators and Book Running Lead ManagersKotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited and Credit Suisse Securities (India) Private Limited
Lead ManagersIIFL Holdings Limited
RegistrarLink Intime India Private Limted
Listing atNSE / BSE

Varroc Engineering IPO Allotment Date and Link

Allotment will be done on 04th July 2018. Stay tuned for more information. Check the allotment status at the link given below.

Click Here.

Grey Market Price, GMP, Premium

DateGMPKostak RateSauda
05 Jul 2018Rs. 40 to 45—-—-
03 Jul 2018Rs. 15 to 20—-—-
29 Jun 2018Rs. 20 to 25—-—-
28 Jun 2018Rs. 50Rs. 400—-
27 Jun 2018Rs. 60Rs. 450—-
26 Jun 2018Rs. 55Rs. 350—-

Financials

DateTotal RevenueTotal ExpensesProfit after Tax
9M FY 2018
Rs. 10,417.1Rs. 9,973.5Rs. 450.3
FY 2017Rs. 9,702.3Rs. 9,454.3Rs. 303.0
FY 2016Rs. 8,239.5Rs. 7,897.5Rs. 369.0
FY 2015Rs. 7,038.5Rs. 7,063.3Rs. 13.0
FY 2014Rs. 6,139.4Rs. 6,055.2Rs. 42.0
FY 2013Rs. 4,225.3Rs. 4,220.9Rs. -25.4
**(All Figures in Rs. Crores)

Valuations

  • Earnings Per Share (EPS): Rs. 33.4
  • Price/Earnings (P/E) ratio: Rs. 28.89 – Rs. 28.95
  • Return on Net Worth (RONW): 15.93%
  • Net Asset Value (NAV): Rs. 209.69 per share

Subscription Details

CategorySHARES OFFERED26 Jun 201827 Jun 201828 Jun 2018
RII70426060.050.220.95
NII30182600.010.042.45
QIB40243461.043.179.16
Employee1000000.100.340.65
Total141852120.331.023.59

Brokers Recommendation

  1. ICICI Securities: Subscribe from a long-term perspective.
  2. Canara Bank Securities: Subscribe for long-term gains.
  3. Sharekhan: Subscribe with Caution.
  4. Centrum Broking: Subscribe.
  5. Angel Broking: Neutral.
  6. Choice Broking: Subscribe with Caution.

Registrar

Link Intime India Private Ltd

Listing Date

Listing is scheduled on 06th July 2018. Please check for the updates.
Listing Day Figures (06th July 2018)

 BSE (541578)NSE (VARROC)
IPO PriceRs. 967Rs. 967
OpenRs. 1032Rs. 1015
HighRs. 1062Rs. 1061.65
LowRs. 1000Rs. 1000
CloseRs. 1040.55Rs. 1037.35

Varroc Engineering Limited Address

Registered Office and Corporate Office: L-4, MIDC Area, Waluj, Aurangabad 431 136

Telephone: +91 240 6653 700/6653 699;
Fax: +91 240 2564 540;
E-mail: [email protected];
Website: www.varrocgroup.com

IPO DRHP / Prospectus

Download Now – Click Here.

Leave a Reply

Your email address will not be published. Required fields are marked *