Divgi TorqTransfer Systems Launches First Mainboard IPO of 2023

Divgi TorqTransfer Systems, India’s one of the top Automotive component manufacturers, has declared its 2023s initial public offering (IPO) on the mainboard. The IPO is set to open on March 1 and close on March 3, and the company plans to raise approximately Rs 412.12 crore through the issue. Divgi TorqTransfer Systems is a leading supplier of transfer case systems to original equipment manufacturers in India. Allotment of shares to anchor investors will occur on February 28, and the stock is anticipated to get listed on the exchanges on March 14. In December of last year, the company obtained approval for the public offer from market regulator SEBI, while the draft papers had been filed in October.

  • Company Name: Divgi TorqTransfer Systems
  • IPO Open Date: March 1, 2023
  • IPO Close Date: March 3, 2023
  • Anchor Investor Allotment: February 28, 2023
  • Issue Size: Rs 412.12 crore (approximately)
  • Fresh Issue: Rs 180 crore
  • Offer for Sale: Up to 3,934,243 equity shares of Rs 5 each
  • Retail Quota: 10%
  • QIB Quota: 75%
  • HNI Quota: 15%
  • Price Band: Rs 560-590 per share
  • Listing Date: March 14, 2023

Purpose of the IPO

The proceeds from the fresh issue will be primarily used for procuring equipment and machinery at its manufacturing facilities and for various corporate objectives.

IPO Details

The upcoming IPO includes a fresh issue of Rs. 180 crores and an offer-for-sale of up to 39,34,243 equity shares, which will be sold by the company’s promoters and other selling shareholders. Among them, Oman India Joint Investment Fund plans to sell 22,50,000 shares, while NRJN Family Investment intends to offload 14,41,441 units. Divgi TorqTransfer has reduced the size of the fresh issue to Rs 180 crore from the previously announced Rs 200 crore. However, the company has increased the size of the offer for sale (OFS). 

  • The issue is primarily aimed at qualified institutional buyers (QIBs), with 75% of the offer reserved for this segment. 
  • Non-institutional investors can subscribe to 15% of the offer, while retail investors have been allotted 10% of the offer.

As of September 2022, Divgi TorqTransfer Systems has reported a net profit of Rs 26 crore, while its total income during the same period was Rs 137 crore.

How to Invest?

Interested investors can take advantage of this opportunity, with the stock expected to get listed on the exchanges on March 14.

To participate in Divgi TorqTransfer Systems IPO, download the Shoonya app, which provides access to the latest tools and features to make investing easy and hassle-free. 

About Divgi TorqTransfer Systems 

In 1964, Divgi Metalwares Private Limited was founded as a small-scale manufacturing enterprise that specialised in producing gears and screwed machined parts. Currently, it has three manufacturing and assembling facilities located across India. The company caters to clients such as Toyota, Mahindra & Mahindra, and Tata Motors. In addition, it delivers across UK and USA in the west, and China, Thailand, Korea, and Japan in the east.

Roadmap Ahead By specifying that the IPO is on the mainboard, the news suggests that Divgi TorqTransfer Systems is going public on India’s largest and most reputable stock exchanges. This is a positive signal for potential investors, as companies that are listed on the mainboard are typically larger and more established. Furthermore, with the company’s reputation for providing high-quality automotive components and strong financial performance, investors should consider investing in this IPO through the Shoonya App to enjoy a lifetime zero brokerage.

Sources: moneycontrol.com

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.