Varroc Engineering IPO: Tata Group to sell Rs.1,786 crore worth stake

The initial public offering (IPO) of auto component maker Varroc Engineering opened for public subscription on Tuesday, with Tata Group set to sell shares worth Rs 1,786 crore.

Varroc Engineering, which supplies auto parts to Jaguar Land Rover, Bentley, Audi and Harley Davidson, has already raised Rs 584 crore from anchor investors including Canadian pension fund CDPQ and Smallcap World Fund Inc.

The IPO, for which the company has set a price band of Rs 965-967, consists of an offer-for-sale to the tune of 2,02,21,730 equity shares by promoter Tarang Jain and existing investors.

While the promoter will sell up to 17,52,560 shares, Tata Group entities — Tata Capital Financial Services and Omega TC Holdings — will offload a total of 1.84 crore stocks, amounting to 13.7% stake.

Omega TC will offload up to 1,69,17,130 equity stocks (amounting to 12.55% stake) and Tata Capital will divest up to 15,52,040 scrips or 1.15% holding. Tata Group will garner Rs 1,786 crore through the public issue.

WATCH THIS ZEE BUSINESS VIDEO HERE:

The issue was subscribed 33% on the first day of the bidding on Tuesday.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 1.04 times, non-institutional investors 1% and retail investors 5%, according to NSE data.