Shares of Wabco India surged 20 percent on Friday as the company received a robust response for its offer-for-sale (OFS). The stock rose as much as 20 percent to its day's high of Rs 6,777.60 per share on the BSE.

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As per the BSE filing, the company announced that it will exercise an oversubscription option to the extent of 6.86 lakh shares in addition to the base offer size. The base issue size of the OFS is 9.10 percent or over 1.72 million equity shares, with a green-shoe option to retain over-subscription of 9.10 percent or over 1.72 million shares.

The promoter's two-day stake sale through the OFS route opened on Thursday for non-retail investors and will open today for retail investors. The floor price for the offer has been fixed at Rs 5,450 a share, an 11 percent discount to Wednesday's closing price of Rs 6.101.90.

Promoter ZF International UK will sell up to 34.3 million shares or an 18.1 percent stake (including green-shoe option). The promoter group intends to reduce its stake in WIL from 93.1 percent to 75 percent post the OFS.

The company is a leader in the Indian CV braking space with a diversified presence across clients and channels i.e., OEM, aftermarket and exports. The company is a technology pioneer and a complete solutions provider.

Brokerage house ICICI Direct recommends investors to subscribe to the offer-for-sale and holds a positive view on the stock amidst the cyclical upturn in its user segments, promoter's intent to increase global sourcing from its Indian arm and a wider product basket after the global acquisition of its erstwhile parent.

(Edited by : Ajay Vaishnav)