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

Varroc Engineering’s IPO Oversubscribed On Final Day

Final Day Subscription

  • Qualified institutional buyers: 9.16 times
  • Non institutional investors: 2.45 times
  • Retail investors: 0.89 times
  • Employees: 0.64 times
  • Overall: 3.57 times

Varroc Engineering Ltd.'s Rs. 1,950-crore initial public offering was subscribed 3.57 times on the final day of bidding today.

The offer received bids for more than 5.05 crore shares against the offer size of 1.41 crore shares, according to data from Axis Capital as of 6 pm.

The highest demand came from qualified institutional buyers as shares reserved for this segment was subscribed 9.16 times. The non-institutional investor segment received bids for 2.45 times the number of shares on offer while the retail investor category was subscribed 0.89 times. Shares earmarked for employees was subscribed 0.64 times.

Also read: Varroc Engineering IPO Fully Subscribed On Second Day   

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.

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.

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.