Varroc Engineering IPO.

Varroc Engineering Limited IPO (Varroc Engineering IPO) Detail

Company Promoters :

The Promoter of the Company is Tarang Jain. The Promoter holds following shares of our Company:

1. Tarang Jain*- 50,798,590 (41.26%) Equity Shares
2. Tarang Jain**- 11,683,770 (100.00%) Series C CCPS

Business Description : 

Varroc Engineering is a tier-1 automotive component group. It designs, manufactures and supplies exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off highway vehicle OEMs directly worldwide. It is the second largest Indian auto component group (by consolidated revenue for FY2017) and a leading tier-1 manufacturer and supplier to Indian two-wheeler and three-wheeler OEMs.

The company initially grew organically in India by adding new business lines such as electrical division and metallic division. In 2012, it acquired Visteon’s global lighting business, now known as Varroc Lighting Systems. Prior to the acquisition of Visteon’s global lighting business, in 2007 Varroc acquired I.M.E.S (a manufacturer of hot steel forged parts for the construction and oil and gas industries) in Italy and in 2011, it acquired Triom (a manufacturer of high end lighting systems for global motorcycle OEMs) with operations in Italy, Romania and Vietnam.

Varroc has a global footprint of 36 manufacturing facilities spread across seven countries, with six facilities for its Global Lighting Business, 25 for India Business and five for Other Businesses.

Objects of the Issue:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and to carry out the Offer for Sale by Selling Shareholders. Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity to our Shareholders. The listing will also provide a public market for the Equity Shares in India. Our Company will not receive any proceeds from the Offer and all the proceeds will be received by the Selling Shareholders, in proportion to the Equity Shares offered by the respective Selling Shareholders as part of the Offer. The Selling Shareholders have approved the transfer of their respective portion of the Equity Shares pursuant to the Offer for Sale as set out below:

1. Tarang Jain- 1,752,560
2. Omega TC Holdings Pte. Ltd.- 15,373,608
3. Tata Capital Financial Services Limited- 1,410,432

Varroc Engineering’s financial performance (in INR crore)

Varroc Engineering IPO details :

  • Issue Type: Book Built Issue IPO 
  • Total IPO size: 20,221,730 shares (INR1,951.4 – 1,955.4 crore)
  • Face Value: Rs 1 Per Equity Share 
  • Offer For Sale: 20,221,730 shares (INR1,951.4 – 1,955.4 crore)
  • Registrar of Varroc Engineering IPO: Link Intime India Private Limited

Valuation of Varroc Engineering (Based on latest FY)

Earnings Per Share (EPS): INR33.4

Price/Earnings (P/E) ratio: 28.89 – 28.95

Return on Net Worth (RONW): 15.93%

Net Asset Value (NAV): INR209.69 per share

Listing Performance of Varroc Engineering

Finalisation of Basis of Allotment: 3 July 2018

Initiation of refunds: 4 July 2018

Transfer of shares to demat accounts: 5 July 2018

Listing Date: 6 July 2018


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