Varroc Engineering IPO Subscribed Over Three Times On Last Day: 5 Things To Know

NDTV Profit Team

28 Jun 2018, 09:43 PM IST

Varroc Engineering's nearly Rs 2,000 crore IPO opened on Wednesday.

Varroc Engineering IPO opened on Tuesday. Varroc Engineering IPO's price band has been fixed in the range of Rs 965 and Rs 967. Varroc Engineering's issue was subscribed 3.59 times by 9:30 pm on Thursday, the third and the last day of the IPO, data from the National Stock Exchange (NSE) showed. Total bids received stood at 5,09,84,415 out of the total issue size of 1,41,85,212. The Varroc group started in 1988. The company is a global tier-1 automotive component manufacturer and supplier of 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 ("OHV") OEMs directly worldwide.

With 36 world-class manufacturing facilities and 16 R&D centers in 10 countries, Varroc group is on an exponential growth trajectory clocking a sale of $1.5 billion in 2016-17.

Varroc Group is led by Naresh Chandra, chairman and non-executive director. Company's managing director is Tarang Jain. The IPO is valued at Rs 1,951 crore (floor price) and at Rs 1,955 crore (cap price). The book running lead managers are IIFL Holdings. Last week, RITES IPO was opened, garnering nearly 67 times of subscription.

Varroc Engineering IPO Opens. Five Things To Know

1. Varroc Engineering IPO's price band ranges between Rs 965 and Rs 967 for a share with a face value of Rs 1.

2. Varroc Engineering's nearly Rs 2,000 crore IPO opened on Wednesday, and closed on Thursday, June 28. The minimum order quantity is 15 equity shares.

3. The Varroc Engineering IPO's floor price is 965 times the face value and the cap price is 967 times of the face value of the equity shares.

4. Varroc Engineering's price/earnings (P/E) ratio ranges between 28.89 to 28.95 (consolidated basis) based on the EPS for 2017-18. The P/E ratio ranges between 194.56 and 194.96 (standalone basis) for last financial year's EPS. The PE ratio of average industry peer group is 42.60.

5. The return on net worth (RoNW) ratio stands at 15.93 percent for the 2017-18 year. The previous two year RoNWs stand at 13.88 percent (2017 fiscal) and 21.15 percent (2016 fiscal).