Auto components company Varroc Engineering plans to raise up to ₹1,955 crore by offering 20.2 million shares via an initial public offering in the price band of ₹965-967. This will be the fourth-largest IPO of 2018, according to Prime Database data.

The offer, which opens on June 26 and closes on June 28, will constitute 15 per cent of the post-offer paid-up capital.

While 17.5 lakh shares will be sold by its promoter, Tarang Jain, the remaining will come from selling shareholders such as Omega TC Holdings Pte (1.69 crore) and Tata Capital (15.5 lakh).

Varroc Engineering is a global Tier-1 (Tier-1 companies are companies that directly supply to original equipment manufacturers) automotive component group. It is engaged in designing, manufacturing and supplying of exterior lighting systems, plastic and polymer components, electrical & electronic components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off highway vehicle OEMs directly worldwide.

The company is the second-largest Indian auto components group (by consolidated revenue for FY2017) and a leading Tier-1 manufacturer and supplier to Indian two-wheeler and three-wheeler OEMs (by consolidated revenue for FY2017), according to CRISIL Research.

The company has long-term relationships with marquee auto manufacturers including Ford, Jaguar Land Rover, the Volkswagen Group, Renault-Nissan-Mitsubishi, Groupe PSA, FCA, a European multinational car manufacturer and an American electric car manufacturer. The company’s key two-wheeler customers in India include Bajaj, Honda, Royal Enfield, Yamaha, Suzuki and Hero.

Kotak Mahindra Capital Company, Citigroup Global Markets India Pvt Ltd, Credit Suisse Securities (India) Pvt Ltd are global coordinators and book-running lead managers to the IPO. IIFL Holdings is the book-running lead manager.

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