Varroc Engineering Limited – a global Tier-I Automotive Component Group — proposes to open its IPO of 20,221,730 Equity Shares through an offer for sale priced at Rs 965 to Rs 967 per Equity Share (totally aggregating Rs 1,950 crores) from June 26, 2018 to June 30, 2018. The equity shares are proposed to be listed on BSE and NSE.

Describing VEL as the second-largest Indian Auto Component Group, Tarang Jain, Managing Director, VEL, said here today that the Group is engaged in designing, manufacturing and supplying of exterior lighting systems, plastics and polymer components, electrical-electronic components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicles directly worldwide.

“VEL is 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), besides having a global footprint of 36 manufacturing facilities spread across seven countries, with six facilities for its global Lighting Business, 25 for its India Business, and five for Other Businesses,” Jain said, adding “Varroc Lighting Systems has long-term relationships with marquee auto manufacturers across the premium, mid-range and mass market pricing spectrum including Ford, Jaguar Land Rover, Volkswagen Group, Renault-Nissan-Mitsubhishi, Groupe PSA, FCA, a European multinational car manufacturer and an American electric car manufacturer.”

Recalling the company’s beginnings in 1988 with Rs one crore investment that had grown to Rs 11,000 crore last year, he said the Group’s 36% revenues were derived from the Indian business with ownership of its own production technology and in-house R&D, besides 93% of its engineering footprint in low-cost countries. The focus is now on growth of its core business according to a specific plan, he said while noting that 10% of lamps for cars are LED with this growth heading for 20% in the Indian market, besides the Group having 16 products for the two-wheeler segment and adding 17 products in this space in view of more consumers going in for LED products.

Earlier, Arjun Jain, Business Head, Electrical/Electronics Division, while highlighting the Group’s +historically aggressive growth,+ said “Lighting is a fast-growing production segment due to increasing lighting content per car. With India being one of the largest 2W market globally and expected to grow at 8% to 10% CAGR during FY17-20, the Group will continue to invest in its R&D, design, engineering and software capabilities to capitalize on future trends while also pursuing strategic joint ventures and organic growth opportunities.”