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Varroc Engineering Limited IPO (Varroc Engineering IPO) Detail

Jun 26, 2018 - Jun 28, 2018

Incorporated in 1988, Aurangabad based Varroc Engineering Limited is a global tier-1 (tier-1 companies are companies that directly supply to original equipment manufacturers ("OEMs")) automotive component group. It designs, manufactures and supplies exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to the passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle ("OHV") OEMs directly worldwide. The company is the second largest Indian auto component group (by consolidated revenue for FY2017) (Source: CRISIL Research) and a leading tier-1 manufacturer and supplier to Indian two-wheeler and three-wheeler OEMs (by consolidated revenue for FY2017) (Source: CRISIL Research). It is also the sixth-largest global exterior automotive lighting manufacturer and one of the top three independent exterior lighting players (by market share in 2016) (Source: Yole).

Varroc has end-to-end capabilities across design, R&D, engineering, testing, manufacturing and supply of various products across the business. It has two primary business lines, namely (i) the design, manufacture and supply of exterior lighting systems to passenger cars OEMs worldwide ("Global Lighting Business"), which it undertakes through its subsidiaries forming part of the VLS group and (ii) the design, manufacture, and supply of a wide range of auto components in India ("India Business"), primarily to two-wheeler and three-wheeler OEMs, including exports. The India Business offers a diversified set of products across three product lines, namely 65 polymers/plastics, electrical/electronics, and metallic components. In addition, it has other smaller businesses, which include the design, manufacture, and supply of two-wheeler lighting to global OEMs, and undercarriage forged machine components for OHVs and drill bits for the oil and gas sector ("Other Businesses").

Varroc's acquisitions most notably included its 2012 acquisition of Visteon's global lighting business, now known as Varroc Lighting Systems. Prior to the acquisition of Visteon's global lighting business, in 2007 it 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. In 2013, the company expanded its global lighting business by acquiring Visteon's holding in a 50/50 joint venture with Beste Motor Co. Ltd. ("TYC") to manufacture automotive lighting in China, namely Varroc TYC (which wholly owns Varroc TYC Auto Lamps, which in turn wholly owns Varroc TYC Auto Lamps (CQ) ("China JV"). On February 13, 2018, it entered into a joint venture with Dell'Orto S.p.A., one of its customers, in India, for the development of electronic fuel injection control systems for two-wheelers and three-wheelers. The company has also expanded its manufacturing and R&D footprint by investing in nine manufacturing plants and an additional R&D center in India since 2012. It continues to expand its manufacturing and R&D footprint, and intend to set up one manufacturing facility in Brazil and one manufacturing facility in Morocco, as well as two manufacturing facilities in India.

Varroc Engineering has a global footprint of 36 manufacturing facilities spread across seven countries, with six facilities for Global Lighting Business, 25 for India Business and five for Other Businesses. As of December 31, 2017, the company's Global Lighting Business has approximately 900 engineers located in nine R&D centers, which are located in the Czech Republic, India, China (through its China JV), Mexico, Germany and the United States of America. It has a new R&D facility which started operations in 2018 in Poland. The Global Lighting Business had 184 patents as of December 31, 2017.

Strengths-
1. The company's Global Lighting Business, which focuses on the design, manufacture, and supply of exterior lighting for passenger vehicles, is the sixth-largest tier-1 automotive exterior lighting manufacturer globally and one of the top three independent exterior lighting players (by market share in 2016) (Source: Yole).

2. Strong, long-standing relationships with many of its customers. In the Global Lighting Business, it has a relationship with a large British car manufacturer since 2006. In the Indian Business, it has a longest-standing relationship is with Bajaj since 1990.

3. It has a comprehensive portfolio of products in the markets which allow it to be a one-stop-shop for the customers and to cross-sell products.

4. A global footprint of 36 manufacturing facilities spread across seven countries, with six facilities for the Global Lighting Business, 25 for India Business and five for other Businesses.

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

* Tarang Jain additionally holds 33,850,000 Equity Shares, in his capacity as the trustee of the TJ Holdings Trust. The trustees of the TJ Holdings Trust are Tarang Jain and Rochana Jain, as the family trustees, and Barclays Wealth Trustees (India) Private Limited, as the managing trustee. Pursuant to the TJ Holdings Trust Deed dated January 13, 2017, Tarang Jain shall, as long as he is acting as the family
trustee, exclusively exercise voting rights in our Company with respect to these Equity Shares.

** Pursuant to the Amendment Agreement, 11,683,770 Series C CCPS held by Tarang Jain shall be converted into 11,683,770 Equity Shares earlier of (i) at least 3 (three) working days prior to the filing of the Red Herring Prospectus by our Company with the RoC for undertaking an IPO or any date mutually acceptable to the Parties; or (ii) the IPO Veto Date; (iii) the Conversion Deadline.

Company Financials:

Summary of financial Information (Restated)
Particulars For the year/period ended (in Rs. Million)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15
Total Assets 68,523.92 58,603.80 52,458.55 44,284.68
Total Revenue 104,170.67 97,022.69 82,395.20 70,384.64
Profit After Tax 4,507.77 3,033.89 3,698.23 168.09

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 IPO Details

IPO Opening Date Jun 26, 2018
IPO Closing Date Jun 28, 2018
Issue Type Book Built Issue IPO
Face Value ₹1 per equity share
IPO Price ₹965 to ₹967 per equity share
Market Lot 15 Shares
Min Order Quantity 15 Shares
Listing At BSE, NSE
Issue Size20,121,730 Eq Shares of ₹1
(aggregating up to ₹1,945.77 Cr)

Varroc Engineering IPO Tentative Timetable

The Varroc Engineering IPO open date is Jun 26, 2018, and the close date is Jun 28, 2018. The issue may list on Jul 6, 2018.

IPO Open Date Jun 26, 2018
IPO Close Date Jun 28, 2018
Basis of Allotment Date Jul 3, 2018
Initiation of Refunds Jul 4, 2018
Credit of Shares to Demat Account Jul 5, 2018
IPO Listing Date Jul 6, 2018

Varroc Engineering IPO Lot Size

The Varroc Engineering IPO market lot size is 15 shares. A retail-individual investor can apply for up to 13 lots (195 shares or ₹188,565).

Application Lots Shares Amount (Cut-off)
Minimum 1 15 ₹14,505
Maximum 13 195 ₹188,565

Varroc Engineering IPO Subscription Status (Bidding Detail)

The Varroc Engineering IPO is subscribed 3.54 times on 6/28/2018 5:00:00 PM. The public issue subscribed 0.84 in the retail category, 9.15 in the QIB category, and 2.45 in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)
QIB9.15
NII2.45
Retail0.84
Employee0.63
Total3.54

Varroc Engineering IPO Prospectus

Varroc Engineering IPO Rating

647
4.0
Rating:Rated 4.0 stars
Vote Here ...

Varroc Engineering IPO Listing Date

Listing Date Friday, July 6, 2018
BSE Script Code 541578
NSE Symbol VARROC
Listing In
ISIN INE665L01035
IPO Price ₹967 per equity share
Face Value ₹1 per equity share

Listing Day Trading Information

.
IPO Price
Open
Low
High
Last Trade
BSE
₹967.00
₹1,032.00
₹1,000.00
₹1,062.00
₹1,040.55
NSE
₹967.00
₹1,015.00
₹1,000.00
₹1,061.65
₹1,037.35

Company Contact Information

Varroc Engineering Limited
L-4, MIDC Area
Waluj
Aurangabad 431 136
Phone: +91 240 6653 700/6653 699
Email: http://www.varrocgroup.com/
Website: http://www.varrocgroup.com

Varroc Engineering IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: varroc.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Varroc Engineering IPO Reviews / Ratings

Varroc Engineering IPO FAQs

Varroc Engineering IPO is a main-board IPO of 20,121,730 equity shares of the face value of ₹1 aggregating up to ₹1,945.77 Crores. The issue is priced at ₹965 to ₹967 per equity share. The minimum order quantity is 15 Shares.

The IPO opens on Jun 26, 2018, and closes on Jun 28, 2018.

Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Varroc Engineering IPO opens on Jun 26, 2018 and closes on Jun 28, 2018.

Varroc Engineering IPO lot size is 15 Shares and the minimum order quantity is 15 Shares.

You can apply in Varroc Engineering IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Varroc Engineering IPO will be done on Jul 3, 2018, and the allotted shares will be credited to your demat account by Jul 5, 2018. Check the Varroc Engineering IPO allotment status.

The Varroc Engineering IPO listing date is on Friday, July 6, 2018.

Varroc Engineering IPO Message Board

Ranked Members  Ranked Members

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850 Comments

434. ipobull |Aug 23, 2018 11:59:18 AM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Varroc has finally maintained to keep its head above 1000. So better times to come. Follow my advise on the stock.
433. ipobull |Aug 18, 2018 1:49:46 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Varroc to declare results on Sep 5. Have patience until then because in lead up to that point, there should be some rally on the upwards as result of good expectations. It has formed a very strong base at 960 & is attempting to cross the 4 figure mark, but failing. Hope the results should help it cross the hurdle. Thereafter, after seeing the results, you may take a fresh call.
432. ipobull |Aug 7, 2018 10:32:03 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Endurance has run. Now it will be Varroc's turn. Consolidating near 990 for quite some time. Sellers have dried out. Just waiting for its results.
431. ipobull |Jul 31, 2018 4:17:49 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Varroc crossed 1000. Very good signs for at least 30% upside from these levels in 6 months.
430. VIE |Jul 28, 2018 10:23:17 PM
IPO Mentor IPO Mentor (500+ Posts, 500+ Likes)
@ justininvestor
If its price come down by 15% as u said it will be an buying opportunity..
430.1. VIE |Jul 28, 2018 10:23:49 PM
IPO Mentor IPO Mentor (500+ Posts, 500+ Likes)
Good long term bet
429. ipobull |Jul 26, 2018 4:10:41 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Made a strong base around 940 levels and moved above IPO price. So, we can say with some degree of certainty that there is more upside than downside.
428. ipobull |Jul 12, 2018 4:34:22 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Read my message no. 406. Consolidation between 1000-1050 is over. The stock ready to fly now. A quick move to 1150 levels initially. Just need to have patience for handsome returns in Varroc.
428.2. Justaninvestor |Jul 21, 2018 10:40:53 PM
One should get it @15%below ipo price
428.3. ipobull |Jul 23, 2018 10:27:24 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
I've gone wrong with my prediction. But I think since it is going down & finding its base on thin volumes, you should not worry. Just wait for its quarterly results for leg up.
427. AnkurGoel |Jul 9, 2018 5:51:59 PM
Lodha Developers and Dinesh Engineers Ltd IPOs have been approved by Sebi.
Planning to hold single allotted lot at least for mid term in current scenario...
426.1. Abhishek Shahi |Jul 21, 2018 10:21:09 PM
seems nice
425. IPO ANALYSTS ???? |Jul 7, 2018 11:59:32 PM
BUY VARROC WITH SL 985 TARGET 1100+
425.1. Abhishek Shahi |Jul 21, 2018 10:20:59 PM
what is the expectation
425.2. friend |Jul 23, 2018 3:39:12 PM
Hello , what is happening with sarveshwar food today it is trading at 35 , do u have any idea? Why is it going down?
424. RAJAKUMAR |Jul 6, 2018 11:59:18 AM
IPO Guru IPO Guru (1400+ Posts, 1100+ Likes)
Dear IPOANALYSIS
Applied with full force 50% sold at 1032 and remaining sold at 1010 to 1018. Holding 50 shares.
424.2. RAJAKUMAR |Jul 7, 2018 10:51:41 AM
IPO Guru IPO Guru (1400+ Posts, 1100+ Likes)
Dear IPOANALYSIS
I sold 20 shares at 1055. Now i am holding 30 shares for one year for target of Rs.1700/=
424.3. ipobull |Jul 7, 2018 9:50:43 PM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Read my message no. 406. You should have patience with such stocks. I applied with full force and got 195 shares. The stock bound to cross 1250 within 6 months.
423. harit |Jul 6, 2018 7:34:10 PM
IPO Guru IPO Guru (1800+ Posts, 3100+ Likes)
Expert members please advise me
On BROKING co.
I have 8 account in "A" BROKING co.with DP in CDSL
Now if I want to change my trading account to "B" company can I ?
If I/we hold stocks in "A" co. Should I have to transfer or it will remain in old DP In CDSL?
423.1. dpcdsl |Jul 7, 2018 9:06:28 PM
Top Contributor Top Contributor (300+ Posts, 200+ Likes)
Yes, you can open trading a/c with broker 'B' while keeping Demat a/c with 'A', provided 'B' does not insist on demat a/c with POA to them.

You shall have to trade with 'B' and give DIS for execution to 'A', alternatively you may choose online transaction facility of CDSL called "EASIEST" for which one time authentication for CM ID of 'B' to be done by 'A' on your request.

For your information, if you wish to shift your demat a/c with 'B' from 'A', there is no transaction charge applicable. Shifting is free to an account in the same name and style.
423.2. harit |Jul 7, 2018 9:29:13 PM
IPO Guru IPO Guru (1800+ Posts, 3100+ Likes)
Thanks for your help in detail
Kindly suggest some BROKING firm with good experience
422. K |Jul 7, 2018 4:07:26 PM
17*195=3315 shares sold@ 1015 matching
421. Anarchist |Jul 6, 2018 9:40:35 PM
IPO Mentor IPO Mentor (500+ Posts, 1400+ Likes)
Nomura (India Stock mother fund) bought 11,07,195 shares of 'Varroc' in a block deal at NSE ....
421.2. Hemant K |Jul 7, 2018 1:23:28 AM
Sir I've 2 lots. Shall stay invested for long term. What's ur suggestion
421.3. Anarchist |Jul 7, 2018 2:18:46 AM
IPO Mentor IPO Mentor (500+ Posts, 1400+ Likes)
@. Hemant K

If there are no global shake ups, the stock price might soon attain a respectable level.(1200 +)....if I were you, I would sell as soon as it does....

Insaan gujar jaaye to sidhe Kriya Karam kar do......I dont endorse mummification...


420. Gnsarda |Jul 6, 2018 7:45:46 PM
Thanks Aniketiaf sir careing me. I sold Rites, Varroc and sold half shares of Fine.
419. Chem cho |Jul 6, 2018 3:27:19 PM
IPO Guru IPO Guru (2200+ Posts, 2300+ Likes)
BEST ISSUE

THERE WE GO RS 1056
419.5. Chem cho |Jul 6, 2018 6:34:00 PM
IPO Guru IPO Guru (2200+ Posts, 2300+ Likes)
@ Medge

I hope others could understand my calls
like Market kid and PVSH
Because of fools IPO gurus have stopped giving advice
they want 100% sucess calls which brokers also cannot give
419.6. Doctor strange |Jul 6, 2018 7:07:41 PM
Sold at 1040 ..
418. Anarchist |Jul 6, 2018 6:16:19 PM
IPO Mentor IPO Mentor (500+ Posts, 1400+ Likes)
Massive MSP hike,loan waivers and upcoming festive season mean disproportionate rural demand for autos ...Crude oil has started to ebb, metals have slumped and falling INR could only enrich both, top and the bottom line of global suppliers...

Now the allottees must decide how irrationally they need to act ....I have heard of a singer who was approached by A. R. Rahman but they turned him back as he was a newbie ....Someone else took the offer and that number topped all charts in that year...


417. tnk |Jul 6, 2018 5:10:02 PM
Those who took risk and applied for full 2 lacs application would have made handsome profits, even if sold in opening at lower prices.
416. Adityasingh |Jul 6, 2018 4:04:14 PM
Anyone from HDFC securities ?? I got allotted the shares but can't see them on my equity panel. Any reasons why so ?
416.1. medge |Jul 6, 2018 4:51:12 PM
IPO Guru IPO Guru (1000+ Posts, 1700+ Likes)
In hdfc sec you can't see stock details on listing day but you can still place sell order as per your holding...
415. sonal patel |Jul 6, 2018 9:03:25 AM
IPO Guru IPO Guru (1100+ Posts, 4700+ Likes)
guys..........all the best for varroc listing .......
good listing expected........gmp around 48 - 52 ........
listing range for varroc is 1015-1025 ...........
if market condition is good ........LISTING WILL BE SUPRISING*
415.1. sonal patel |Jul 6, 2018 4:18:23 PM
IPO Guru IPO Guru (1100+ Posts, 4700+ Likes)
both target achieve in 1st hours of trade.......again right predictions..........