Divgi TorqTransfer Systems makes a tepid market debut; shares rise 5% on listing

Divgi TorqTransfer Systems (Divgi Torq) debuted at a mild premium at Dalal Street on Tuesday. The latest debutant of Dalal Street listed at Rs 620 on National Stock Exchange (NSE), a premium of about 5 per cent over issue price of Rs 590. Similarly, the stock began its innings at Rs 600 on BSE, just 2 per cent up from its issue price.

Ahead of listing, Divgi Torq was commanding a premium of Rs 10-15 in the grey market, hinting towards a mild premium over its issue price. The listing has been on similar lines, despite the volatility in the broader markets.

The Rs 412 crore initial public offering (IPO) of Divgi TorqTransfer Systems was open for subscription between March 1 and March 3, 2023. The company offered its shares in the range of Rs 560-590 apiece, with a lot size of 25 equity shares and the issue received a mild subscription.

Divgi Torq was subscribed 5.44 times, with Qualified Institutional investors' portion getting 7.83 times bids. The quota for non-institutional bidders was booked 1.4 times, whereas retail investors portion fetched 4.31 times bids of the reserved portion.

Pune-based 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 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.
 

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