Authors Nehal Chaliawala and Ketan Thakkar

India’s second-largest auto parts maker Group is planning an initial public offering this month. The group is trying to maintain double-digit growth by changing Indian laws and regulations to shift the world from halogen to LED headlights.

The company had earlier set a target of achieving revenues of Rs 2 billion by fiscal 2021 implying that it should grow at a compound annual growth rate (CAGR) of 22%. in 2018 the company. Total revenue for the financial year stood at Rs 104.17 billion.

Varroc Engineering Managing Director Tarang Jain declined to provide future guidance but said the company is committed to maintaining the growth momentum in the segment. It benefited from strong acquisitions in the lighting business and the domestic two-wheeler aftermarket.

“The global automotive market is expected to grow by 2%, with the lighting business growing by 4%. For us, the content of each vehicle will increase further, which provides room for future growth.” Jain said.

Jain was speaking at the initial public offering roadshow in Mumbai on Tuesday.

According to a public note issued by the company on Tuesday, Varroc has scheduled the launch for the June 26 IPO date Pricing is in the range of Rs 965 to Rs 967 per share.

at p The issue will help Varrocc raise around Rs 19.55 crore.

The IPO includes the sale of up to 1.8 million shares by promoter Jain and about 16.9 million shares by Omega, TC Holdings Pte Ltd 16 million shares by Tata Capital Financial Services Ltd. million shares.

Kotak Mahindra Capital, India Inc and Credit Suisse Securities (India) are the Global Coordinators and Bookrunners for Citi Global Markets. The closing date is June 28th.

The company has grown at a CAGR of 14-15% over the last three years. With the upcoming BS launch of-VI emission standards and safety guidelines, the Varrocc content per vehicle in the domestic market is also expected to increase and the company offers 16 different components for two and three wheelers. The company has also added fuel injection system to the domestic market.

The company plans to invest around Rs 100 crore over the next three years to expand its product portfolio and set up new plants in Brazil and Morocco, which will help Varoc meet future demand.

Varoc is the world’s sixth largest supplier of automotive lighting and the second largest supplier of electric vehicle lighting at 20%. The executive director said:

“We will focus aggressively on the automotive electronics business, including electronics, motors, and battery management systems.”