Gear wheels sit in a rack of an automotive component washing machine in India. (Photographer: Dhiraj Singh/Bloomberg)

Varroc Engineering IPO Fully Subscribed On Second Day   

Day 2 Subscription

  • Qualified institutional buyers: 3.17 times
  • Non-institutional bidders: 0.04 times
  • Retail investors: 0.22 times
  • Employees: 0.34 times
  • Total: 1.02 times

Varroc Engineering Ltd.'s Rs 1,950 crore initial public offering was subscribed 1.02 times on the second day of bidding today.

The portion allocated to qualified institutional buyers was subscribed 3.17 times the number of shares on offer, as per data available with the stock exchanges as of 5 pm. The segment for non-institutional investors saw muted demand and was subscribed only 0.04 times while the retail segment was subscribed 0.22 times. Shares set aside for employees of the company was subscribed 0.34 times.

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

The IPO of the world's sixth largest exterior automotive lighting maker was subscribed 33 percent on the first day.

The Aurangabad-based company will not receive any share of the proceeds from the two crore shares the Tata Group’s investment arms – Tata Capital and Omega TC – and promoter Tarang Jain were looking to offload. The price band of the offer was set at Rs 965-967 apiece.

Ahead of the launch of the offer, Varroc Engineering raised Rs 583.73 crore by selling shares to 30 anchor investors. The company had allocated 60.36 lakh shares at Rs 967 apiece, according to an exchange filing.

Also read: Varroc Engineering Eyes Growth From Electric Vehicles

In the global market, Varroc supplies parts to key global clients including electric car maker Tesla, Audi, Jaguar Land Rover, Bentley and Volkswagen. The company derives nearly 65 percent of its revenue from global businesses.