Divgi Torqtransfer IPO Details
- Open Date 01-Mar-23
- Close Date 03-Mar-23
- Lot Size 25
- IPO Size ₹ 180.00 Cr
- IPO Price Range ₹ 560 to ₹ 590
- Min Investment ₹ 14000
- Listing Exchange BSE, NSE
- Basis of Allotment 09-Mar-23
- Refunds 10-Mar-23
- Credit to Demat Account 13-Mar-23
- Listing Date 14-Mar-23
Divgi Torqtransfer Systems IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 01-Mar-23 | 0.00x | 0.06x | 0.60x | 0.12x |
| 02-Mar-23 | 0.06x | 0.22x | 1.56x | 0.38x |
| 03-Mar-23 | 7.83x | 1.40x | 4.31x | 5.44x |
Divgi Torqtransfer IPO Synopsis
Divgi TorqTransfer Systems IPO opens on 1st March, 2023, and closes on 3rd March, 2023. The issue entails an offer for sale of 3,934,243 equity shares which aggregates the issue size to Rs. 180 cr. The company has fixed the lot size to 25 shares per lot and the price range is fixed between Rs. 560 – Rs. 590 per share. The issue will be listed on the exchanges on 14th March while the shares will be allotted on 9th March. Inga Ventures Pvt. Ltd. and Equirus Capital Ltd. are the lead managers to the issue.
Objective of the Divgi TorqTransfer Systems IPO
The net proceeds from the issue will be utilised towards:
1. Funding capital expenditure requirements for the purchase of equipment/machineries of the manufacturing facilities
2. General corporate purposes
Divgi TorqTransfer Systems IPO Video
About Divgi Torqtransfer Systems
Divgi Torqtransfer Systems is engaged in the business as an automotive component entity. They are among the 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.
It manufactures and supplies a variety of products under the broad categories of:
(i) torque transfer systems (which includes fourwheel-drive (“4WD”) and all-wheel-drive (“AWD”) products)
(ii) synchronizer systems for manual transmissions and DCT
(iii) components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs.
The company has also developed:
(i) transmission systems for EVs
(ii) (ii) DCT systems
(iii) rear wheel drive manual transmissions
The company is in works to launch domestically manufactured DCT systems for the Indian market. Therefore, we will be the only manufacturer of DCT systems in India.
It has three manufacturing and assembling facilities across India located at Sirsi in Karnataka, and Shivare and Bhosari near Pune in Maharashtra, with the manufacturing facilities at Shivare and Bhosari being strategically located in proximity to its key clients, and one under-construction manufacturing facility located at Shirwal, Maharashtra.
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Divgi Torqtransfer Systems Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 233.78 | 186.58 | 159.07 |
| EBITDA | 65.61 | 51.90 | 36.94 |
| PAT | 46.15 | 38.04 | 28.04 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total Assets | 405.37 | 362.88 | 303.70 |
| Share Capital | 13.77 | 6.88 | 6.02 |
| Total Borrowings | 0.12 | 0.26 | 50.41 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 51.1 | 27.0 | 38.3 |
| Net cash from / (used in) investing activities | -51.1 | -24.6 | -24.3 |
| Net cash flow from / (used in) financing activities | -2.9 | -2.6 | -5.8 |
| Net increase (decrease) in cash and cash equivalents | -2.9 | -0.2 | 8.3 |
Peer Comparison
| Name of the Company | Basic EPS | NAV | PE | RoNW% |
|---|---|---|---|---|
| Divgi TorqTransfer Systems Limited | 16.76 | 123.5 | NA | 13.57% |
| Sona BLW Precision Forgings Limited | 6.22 | 34.23 | 73.52 | 18.07% |
| Precision Wires India Limited | 413.1 | 3,621.05 | 41.44 | 11.41% |
| ZF Commercial Vehicle Control Systems India Limited | 74.9 | 1,114.57 | 124.83 | 6.72% |
| Sundram Fasteners Limited | 21.74 | 125.46 | 45.1 | 17.52% |
| Endurance Technologies Limited | 32.75 | 278.68 | 44.61 | 11.75% |
Divgi Torqtransfer IPO Key Points
-
Strengths
• One of the very few suppliers in India having the capability to develop and provide system level transfer case, torque coupler, DCT solutions and transmission systems for EVs across a wide array of automotive vehicles and geographies, with leadership across select product categories
• It has strong and well-established relationships with several marquee domestic and global OEMs in the automobile sector such as Tata Motors, Mahindra & Mahindra and with global suppliers such as BorgWarner
• Strategically located manufacturing facilities capable of producing high precision components meeting system-level design intent
-
Risks
• The business largely depends upon the top five customers, and the loss of such customers or a significant reduction in purchases by such customers will affect the business
• A disruption in the supply of these key components and raw materials and failure of our suppliers and third- party logistics service providers to meet their obligations
• Inability to operate and grow the business in certain countries that it exports its products in
• Volatility in the prices or availability of raw materials and components
• Delays or defaults in customer payments and receivables
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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Divgi Torqtransfer IPO FAQs
What is the price band of the Divgi Torqtransfer Systems IPO?
The price for the Divgi Torqtransfer Systems IPO is set at Rs. 560 - 590 per share
When does the Divgi Torqtransfer Systems IPO issue open and close?
The Divgi Torqtransfer Systems IPO opens on 1st March and closes on 3rd March.
What is the size of Divgi Torqtransfer Systems IPO issue?
The Divgi Torqtransfer Systems IPO comprises of an Offer for Sale of of 3,934,243 equity shares which aggregates the issue size to Rs. 180 cr.
What is the allotment date of Divgi Torqtransfer Systems IPO?
The allotment date of Divgi Torqtransfer Systems IPO is set for 9th March
What is the Divgi Torqtransfer Systems IPO’s listing date?
The Divgi Torqtransfer Systems IPO will be listed on 14th March.
What is the lot size and investment required for the Divgi Torqtransfer Systems IPO?
The Divgi Torqtransfer Systems IPO lot size is 35 shares. A retail-individual investor can apply for up to 13 lots (325 shares or ₹191,750).
What is the objective of the issue?
The net proceeds from the issue will be used for:
1. Funding capital expenditure requirements for the purchase of equipment/machineries of the manufacturing facilities
2. General corporate purposes
How to apply for the Divgi Torqtransfer Systems IPO?
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
Who are the promoters/key personnels of Divgi Torqtransfer Systems IPO?
Divgi Torqtransfer Systems IPO is promoted by Jitendra Bhaskar Divgi, Hirendra Bhaskar Divgi and Divgi Holdings Private Limited.
Who are the book runners for Divgi Torqtransfer Systems IPO?
Inga Ventures Pvt. Ltd. and Equirus Capital Ltd. are the book running lead managers to the Divgi Torqtransfer Systems IPO.
Contact Details of Divgi Torqtransfer Systems IPO
Contact Information
Divgi TorqTransfer Systems Limited
Plot No. 75,
General Block, MIDC
Bhosari, Pune 411026
Phone: +91 020 – 27302000
Email: sckadrolli@divgi-tts.com
Website: http://www.divgi-tts.com/
Divgi Torqtransfer Systems IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: Divgi.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Divgi Torqtransfer Systems IPO Lead Manager
Inga Ventures Pvt Ltd
Equirus Capital Private Limited