Varroc Engineering has secured a strategic contract with a global electric vehicle original equipment manufacturer (OEM), marking a significant milestone in the company's expansion into the electric vehicle sector. The contract represents substantial business potential with an estimated annual business value at peak capacity.

Contract Overview

The strategic contract award demonstrates Varroc Engineering's growing capabilities in the electric vehicle segment and its ability to secure partnerships with major global manufacturers. This development positions the company to capitalize on the rapidly expanding electric vehicle market.

Strategic Market Position

The ₹4.39 billion estimated annual business value at peak capacity represents a substantial revenue opportunity for Varroc Engineering. This contract reinforces the company's strategic focus on electric vehicle components and validates its capability to meet the stringent requirements of global EV manufacturers.

The partnership with a global electric vehicle OEM highlights Varroc Engineering's technical expertise and manufacturing excellence in the automotive sector. This strategic contract is expected to contribute significantly to the company's revenue growth as production scales up to peak capacity, strengthening its position in the evolving automotive landscape.

Varroc engineering Limited has announced the successful issuance and allotment of commercial paper worth Rs 50 crores to Kotak Mahindra Bank Limited. The automotive components manufacturer informed the stock exchanges about this debt instrument issuance on January 28, 2026, in compliance with Regulation 30 of SEBI Listing Regulations.

Commercial Paper Details

The commercial paper issuance carries specific terms and conditions structured for short-term financing requirements. The instrument features a discount rate of 7.20% with a tenure of 30 days, making it a short-term debt security for the company's working capital needs.

Instrument Structure

The commercial paper has been structured with 1000 units, each carrying a face value of Rs 5,00,000. The issue price has been set at Rs 4,97,058.5 per security, reflecting the discount rate applied to the face value. ICICI Bank Limited has been appointed as the Issuing and Paying Agent (IPA) for this commercial paper issuance.

Listing Process

Varroc Engineering Limited has indicated its intention to list the commercial paper on the National Stock Exchange of India Limited. The company is currently awaiting listing approval from the exchange. The commercial paper is proposed to be listed, which would provide additional liquidity options for the instrument.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 and other applicable regulations of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The intimation was signed by Anil Ghatiya, Company Secretary and Compliance Officer, ensuring proper corporate governance protocols were followed for this debt issuance.