Varroc Engineering Mops Up Rs 583 Crore From Anchor Investors Ahead Of IPO 

Varroc Engineering Ltd. today raised Rs 583.73 crore by selling shares to 30 anchor investors ahead of its initial public offering that opens tomorrow. The automotive component manufacturer allocated 60.36 lakh shares at Rs 967 apiece, according to an exchange filing.

The international anchor investors included Schroder International Selection Fund, Nomura Fund Ireland Public Ltd., DSP BlackRock, First State Investments, while L&T Mutual Fund, Bajaj Allianz Life Insurance, ICICI Prudential AMC, Kotak Mutual Fund and SBI Mutual Fund were some of the domestic funds which participated in the anchor allotment.

Before an IPO opens, shares are allotted to anchor investors, which are usually large foreign and domestic funds, to show backing for the offer by institutional investors.

The promoter and two investors will sell shares to raise up to Rs 1,950 crore through the IPO of the Aurangabad-based company which supplies parts to Jaguar Land Rover, Bentley and even Tesla Inc. Tata Group’s investment arms – Tata Capital and Omega TC – and promoter Tarang Jain will offload 2 crore shares at Rs 965-967 apiece. The world’s sixth largest exterior automotive lighting maker won’t get any share of the proceeds.

Post of the offer, promoter holding will fall by 130 basis points to 85 percent. The Tata Group companies, which had acquired shares at an average price of Rs 162 apiece, will exit with nearly sixfold gains.