Automobile component maker Varroc Engineering Ltd made a positive start on the stock exchanges on Friday, with shares making a strong comeback after profit-taking.
Shares of Varroc listed at Rs 1,032 apiece on the BSE, up 6.7% from the issue price of Rs 967.
The shares fell to a low of Rs 1,000 before recovering to as high as Rs 1,062 apiece.
The stock closed the opening day at Rs 1,040.55, up 7.6% from the issue price of Rs 967, with a market capitalisation of Rs 14,027.8 crore.
BSE’s benchmark Sensex advanced 0.23% on a volatile Friday.
The positive start comes after Varroc's IPO was covered 3.6 times, thanks to bids from institutions and wealthy individuals, though retail investors remained lukewarm.
Varroc is the 16th company to list on the mainboard segment of stock exchanges in 2018. Ten out of the previous 16 companies had gained on debut this year.
Varroc had sought a valuation of as much as Rs 13,036 crore ($1.9 billion) through the share sale. The public issue comprised a sale of 20.22 million shares and raised Rs 1,955 crore ($284 million).
Singapore-based Omega TC Holdings Pte Ltd, a fund managed by Tata Opportunities, and Tata Capital Finance Services sold their entire stake in the IPO. Promoter Tarang Jain offloaded a small chunk of shares.
The company did not receive any proceeds from the offer.
VCCircle had reported https://www.vccircle.
Varroc had filed its draft red herring prospectus with the capital markets regulator on 28 March. The Securities and Exchange Board of India had approved the IPO on 6 June.
Kotak Mahindra Capital Co, Citigroup Global Markets India, Credit Suisse Securities (India) and IIFL Holdings managed Varroc Engineering’s IPO.