The initial public offering (IPO) of Divgi TorqTransfer Systems will kick off for subscription on Wednesday, March 1, 2023. The automotive component player will sell its shares in the range of Rs 560-590 apiece with a face value of Rs 5 each.
Divgi TorqTransfer Systems is engaged in the business as an automotive component entity. Incorporated in 1964, the company is among very few automotive component entities in India with the capability to develop and provide system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions.
The issue consists of a sale of fresh equity shares aggregating to Rs 180 crore, along with an offer-for-sale (OFS) of 39,34,243 equity shares aggregating to Rs 232.12 crore. At the upper range of price band, the company aims to mop up Rs 412.12 crore via its initial stake sale.
Promoters and existing investors participating in OFS include Oman India Joint Investment Fund II, NRJN Family Trust, Bharat Bhachandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag.
Net proceeds from the issue will be utilized towards funding capital expenditure requirements for the purchase of equipment/machineries of manufacturing facilities and general corporate purposes.
Investors can make a bid of a minimum of 25 equity shares with each lot costing Rs 14,750. The issue can be subscribed till Friday, March 3, 2023. Anchor book will open on Tuesday, February 28 and the company is likely to get listed at the bourses on March 14, 2023.
Divgi TorqTransfer Systems manufactures manual transmissions, DCT, transfer cases, torque couplers & auto-locking hubs (ALH), essential components for 4WD/ AWD vehicles, Synchronizers for transmissions (gearboxes) and components.
The Pune based automotive player mainly caters to the passenger and small commercial vehicle industry but it is venturing into EV (Electric Vehicle) transmissions. The company has manufacturing facilities in Bhosari and Shivare in Pune and Sirsi in Karnataka.
Mahindra & Mahindra, Tata Motors and Toyota Kirloskar Auto Parts are among the company's customers. It also operates in the UK, the USA, China, Thailand, Korea and Japan.
Divgo TorqTransfer has reserved 75 per cent of the equity shares for qualified institutional bidders, whereas non-institutional investors will get a 15 per cent allocation. The remaining 10 per cent equity shares will be allocated to the retail bidders.
Equirus Capital and Inga Ventures are the book-running lead managers, whereas Link Intime India has been appointed as the registrar to the issue. The stock will be listed on both BSE and NSE.
It reported a net profit of Rs 25.66 crore with total revenue of Rs 137.55 crore for the period ended on September 30, 2022. In the financial year 2021-22, its profit stood at Rs 46.15 crore with total revenue at Rs 241.87 crore.
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