Wabco India tumbles as OFS begins

Wabco India slumped 8.23% to Rs 5600 after the offer for sale (OFS) opened for non-retail investors today, 25 March 2021.

Through the OFS, the company's promoter ZF International UK proposes to sell up to 17,17,388 equity shares (representing 9.05% stake), with an option to sell an additional 9.05% stake or 17,17,387 equity shares in case of oversubscription.

The floor price for the OFS is Rs 5450 per equity share, a 10.68% discount to Wabco India's closing price of Rs 6101.90 on Wednesday, 24 March 2021.

The total OFS size (base size + green shoe) stands at 34,34,775 shares, representing 18.1% of outstanding equity shares of the company, aggregating to Rs 1,871.95 crore.

 

ZF International UK held 18.1% stake in the company as on 31 December 2020.

The OFS opened on Thursday (25 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Friday (26 March 2021). A total of 10% of the total offer size is reserved for retail investors.

As on 12:40 IST, the OFS received subscription for 2,66,531 shares. It was subscribed 17.24% on the base non-retail offer size of 15,45,648 shares and 8.62% on the total non-retail total offer size (base size+green shoe) of 30,91,297 shares.

WABCO India manufactures automotive parts. The company produces electronic braking, stability, and suspension and transmission control systems for heavy-duty commercial trucks, trailers and buses.

The company's standalone net profit jumped 35.48% to Rs 52.43 crore on a 28.47% increase in net sales to Rs 566.50 crore in Q3 FY21 over Q3 FY20.

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