Indian two thousand rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Varroc Engineering IPO Subscribed 0.33 Times On The First Day Of Bidding

Summary

Day 1 Subscription

  • Qualified institutional buyers: 1.04 times
  • Non-institutional bidders: 0.01 time
  • Retail investors: 0.05 times
  • Employees: 0.10 times
  • Overall: 0.33 times

Varroc Engineering Ltd.’s Rs 1,950-crore initial public offering was subscribed 0.33 times on the first day of bidding today.

Shares reserved for qualified institutional buyers were subscribed 1.04 times the number of shares on offer, according to data shared by Axis Capital. The retail and non-institutional segment of the auto parts supplier’s IPO saw muted demand at 0.05 times and 0.01 times, respectively.

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.

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

Also Read: Varroc Engineering IPO: Here’s All You Need To Know

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