After the RITES and Fine Organics IPO will close for subscription today, the primary market is yet again ready for a new offering by Varroc Engineering.
The issue size of Rs. 1995 crore by the auto-ancillary company will hit the market on June 26, 2018. The issue includes offer for sale and the price band for the issue is decided between Rs. 965- 967.
The company is continuously augmenting its technology and in house R&D capability to meet the growing needs of the changing automobile sector.
Verroc Engineering is into designing, manufacturing and supplying exterior lighting systems, plastic & polymer components, electrical-electronics components and precision metallic components, among others.
Given the reasonable valuation and balance sheet position with debt to equity of 0.3 times and ROE of 18 times, the experts recommend subscribing to the issue. Also, the current strategy of the company to employ technology in line with the requirements will enhance the overall portfolio.