Divgi Torqtransfer Systems IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Mar 14, 2023Divgi Torqtransfer Systems Limited, an automotive component company, is gearing up to raise funds from the public by way of an Initial Public Offering consisting of a Fresh Issue of Equity Shares accompanied by a share sale by the existing shareholders of the company.
Divgi Torqtransfer Systems IPO consists of both forms of the public offer, a fresh issue and an offer for sale.
In this Divgi Torqtransfer Systems IPO Review, we will understand the company’s operations, product offerings, management and promoters, the objectives of the IPO, the financial standings of the company in today’s time, and more.
| Face Value | Rs 5 |
| Price Band | Rs 560 to Rs 590 |
| Listing At | NSE, BSE |
| Min. Order Quantity | 25 Shares |
| Listing Date | Mar 14, 2023 |
| Offer for Sale | Rs NA |
| Fresh Issue | Rs 180.00 Cr. |
| IPO Size | Rs 412.12 Cr. |
| Tick Size | 1 |
Divgi Torqtransfer Systems IPO Overview
The draft papers of Divgi Torqtransfer Systems IPO have been filed recently with the capital market regulator.
The company will undertake the further process once the IPO has been approved.
Divgi Torqtransfer Systems is looking to raise up to Rs. 200 crores through fresh issues and by the sale of up to 31,46,802 equity shares of the Investor Selling Shareholders and Other Selling Shareholders.
The Draft Red Herring Prospectus does not speak anything of pre-IPO placement of shares.
Divgi Torqtransfer Systems IPO Important Dates
| Events | Date |
| IPO Opening Date | Mar 1, 2023 |
| IPO Closing Date | Mar 3, 2023 |
| Basis of Allotment Finalization | Mar 9, 2023 |
| Refunds Initiation | Mar 10, 2023 |
| Credit of Shares to Demat Account | Mar 13, 2023 |
| Share Listing Date | Mar 14, 2023 |
The Divgi Torqtransfer Systems IPO Dates will be placed in the newspaper as the public announcement. The company is right now waiting for a positive nod from SEBI on its DRHP.
The company will announce the IPO dates, including IPO opening date, IPO closing date, date of basis of allotment, credit of shares to Demat account, and Listing Date.
One of the most recent mainline IPOs was of Harsha Engineers, which was open for three days, and now next in line would be Electronics Mart India IPO which is likely to open on 4th October.
Divgi Torqtransfer Systems IPO Price, Size, Share Offerings
| Face Value | Rs.5 |
| Price Band | Rs 560 to Rs 590 |
| Offer for Sale | Rs NA |
| Fresh Issue | Rs 180.00 Cr. |
| IPO Size | Rs 412.12 Cr. |
Divgi Torqtransfer Systems will be offering shares in the form of fresh issue and offer for sale. The face value of the equity shares is Rs. 5 each. The Divgi Torqtransfer Systems IPO Price band and the minimum lot size will be determined by the company and the selling shareholders in consultation with the Book Running Lead Managers.
Final IPO Price will be discovered through the Book Building Process. The Divgi Torqtransfer Systems IPO Size will consist of shares offered in the public offer.
Divgi Torqtransfer Systems IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 14 Mar 2023 | Rs 40 | NA | Rs 8000 |
| 13 Mar 2023 | Rs 45 | NA | Rs 8000 |
| 10 Mar 2023 | Rs 45 | NA | Rs 8000 |
| 09 Mar 2023 | Rs 70 | NA | Rs 8000 |
| 08 Mar 2023 | Rs 70 | NA | Rs 8000 |
| 07 Mar 2023 | Rs 70 | NA | Rs 8000 |
| 06 Mar 2023 | Rs 70 | NA | Rs 8000 |
| 04 Mar 2023 | Rs 70 | NA | Rs 8000 |
The next important of an IPO is the Grey Market Premium. Though Grey Market is unofficial, its role and significance in today’s capital market cannot be underestimated. Experts, critics, and investors rely on the figures of this market higher.
They bid in an IPO as per the Premium value of the shares in this market. Divgi Torqtransfer Systems IPO GMP will reflect in the market as soon as the company is ready to open its IPO for the public.
Divgi Torqtransfer Systems IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 1st March | 0.00x | 0.06x | 0.60x | 0.12x |
| 2nd Day – 2nd March | 0.06x | 0.22x | 1.56x | 0.38x |
| 3rd Day – 3rd March | 3.94x | 0.97x | 3.45x | 3.04x |
| Shares Offered or Net Issue | 2,095,528 | 1,047,763 | 698,509 | 3,841,800 |
Subscription is the outset of the IPO for the public. This is the step where the investors can bid for the company’s shares. They bid with the price band, which is a price range given by the company.
Divgi Torqtransfer Systems IPO Subscription will state the demand for the shares in the market and decide the success of the proposed IPO. The company will be required to achieve the minimum subscription in order to move forward and allot the shares.
Divgi Torqtransfer Systems IPO Allotment Status
After the subscription comes allotment, where the shares investors applied for are transferred to them. This process is again completely online. The shares are transferred to the Demat accounts of the successful bidders.
Divgi Torqtransfer Systems IPO Allotment and the final price of the shares will be determined, and thereafter, the shares will be listed on the stock exchange.
Divgi Torqtransfer Systems IPO Live Performance
Find out the Divgi Torqtransfer Systems IPO Performance on the graph. Divgi Torqtransfer Systems IPO Price can be checked from here anytime, and you will be able to decide your investment strategy more easily.
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Latest Divgi Torqtransfer Systems IPO News
On 21st September 2022, Divgi Torqtransfer Systems Limited filed the Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI), seeking approval from the public offer. The IPO consists of a Fresh Share Issue and an Offer for Sale.
The company’s existing shareholders will be offloading some portion of their holdings in the said IPO. This is a mainline IPO, and the shares will be listed on NSE and BSE.
Divgi Torqtransfer Systems – Company Review
Divgi Torqtransfer Systems Limited holds a history of decades as it started its operations in 1964 in the form of a small-scale manufacturing entity. They started as Divgi Metalwares Private Limited. The company has changed its name a few times and is today known as Divgi Torqtransfer Systems Limited.
At the time it started, the company manufactured gears and screwed machined parts. With the stronghold of gear technology and continually enhanced manufacturing capacity, the entity outshined as a successful name in the complex and uncertain marketplace.
Today, the company has a wide product portfolio and is served some of the industry leaders from the segment.
Products or Services
Divgi Torqtransfer Systems started off its operations with the manufacturing of gears and screwed machined parts. Today, it undertakes numerous complex manufacturing and has built a strong product portfolio. Largely, the company is engaged in manufacturing Torque Management Solutions, Manual Transmissions, Dual Clutch Transmissions, Electric Vehicle Transmissions, Synchronizers, and Components.
The Divgi Torqtransfer Systems customer list includes but is not limited to Mahindra, Tata, Borg Warner, Sports Utility Vehicles, and many others.
Promoters and Holding
The Promoters of Divgi Torqtransfer Systems Limited are:
- Jitendra Bhaskar Divgi
- Hirendra Bhaskar Divgi
- Divgi Holdings Private Limited
The management of the company includes knowledge enriched and highly experienced individuals, namely:
- Praveen Purushottam Kadle, in the position of Chairman and Independent Director
- Jitendra Bhaskar Divgi, in the position of Managing Director
- Hirendra Bhaskar Divgi, in the position of Whole-Time Director
- Sanjay Bhalchandra Divgi, in the position of Non-Executive Non-Independent Director
- Bharat Bhalchandra Divgi, in the position of Non-Executive Non-Independent Director
- Pradip Vasant Dubhashi, in the position of Independent Director
- Ajay Bhaskar Limaye, in the position of Non-Executive Non-Independent Nominee Director
- Pundalik Dinkar Kudva, in the position of Independent Director
- Geeta Prafullachandra Tolia, in the position of Independent Director
- Sudhir Shridhar Mirjankar, in the position of Chief Financial Officer
- Satish Chandrashekhar Kadrolli, in the position of Company Secretary and Compliance Officer
Is Divgi Torqtransfer Systems good for Investment?
Divgi Torqtransfer Systems Limited is an automotive element entity. The company manufactures and supplies various auto parts to suppliers all over the country. The company operates and manufactures its products in three manufacturing facilities owned by the company, located in different locations.
The company’s products include torque coupler, system stage switch case, and Dual Clutch Automatic Transmission (DCT) options.
The company supplies its products to prominent entities like Mahindra & Mahindra, Tata Motors, and Toyota Kirloskar.
Divgi Torqtransfer Systems Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-22 | 31-Mar-22 | Mar-20 | |
| Assets | 4053.70 | 3628.82 | 3037.00 |
| Revenue | 2418.74 | 1950.25 | 1707.40 |
| Expense | 1797.21 | 1424.69 | 1329.78 |
| Profit After Tax | 461.51 | 380.44 | 280.39 |
Gladly, Divgi Torqtransfer Systems Limited is a profit-yearning company and has successfully secured an uprising profit over the years.
The company’s total revenue, including revenue from operations and other income for the years 2022, 2021, and 2020 was – Rs. 2,418.74 million, Rs. 1,950.25 million, and Rs. 1,707.40 million, respectively.
The company’s profit for the years 2022, 2021, and 2020 was – Rs. 461.51 million, Rs. 380.44 million, and Rs. 280.39 million, respectively.
The EPS of Divgi Torqtransfer Systems has also shown a positive shift from the past years. The EPS is on the growing graph and was recorded at Rs. 16.76 as of March 2022.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Basic & Diluted | 16.76 | 13.82 | 11.64 |
Divgi Torqtransfer Systems IPO Review
Divgi Torqtransfer Systems IPO is a combination of a Fresh Issue and an Offer for sale. The company’s existing shareholders will be lowering their shareholding of the company through the upcoming IPO.
The company will only receive the proceeds of the fresh issue of the IPO, and the selling shareholders will be entitled to the proceeds from the Offer for Sale.
The company intends to utilize the funds from the fresh issue towards Funding capital expenditure requirements, which will be applied for purchasing machinery and equipments for their manufacturing facilities.
Divgi Torqtransfer Systems IPO Details
Here are few more details you need to know before investing in Divgi Torqtransfer Systems IPO –
Divgi Torqtransfer Systems IPO Issue Object
The Divgi Torqtransfer Systems has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Funding capital expenditure requirements for the purchase of equipment / machineries of our manufacturing facilities (Capital Expenditure)
- General corporate purposes.
Divgi Torqtransfer Systems IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- 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;
- Strategically located manufacturing facilities capable of producing high precision components meeting system-level design intent;
- Long-term relationships with marquee domestic and global customers;
- Experienced board of directors and senior management team supported by skilled and qualified workforce;
- Consistent financial performance with focus on innovation and R&D capabilities
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 16.76 | 13.57 | 123.50 |
| 31-Mar-21 | 13.82 | 12.86 | – |
| Mar-20 | 11.64 | 13.38 | – |
Divgi Torqtransfer Systems IPO Lead Managers
Here are the list of Lead managers –
- Inga Ventures Private Limited
-
Equirus Capital Private Limited
Divgi Torqtransfer Systems IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
Address – C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
E-mail: divgi.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance E-mail: divgi.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Divgi Torqtransfer Systems IPO – Other Details
- Statutory Auditor – S.R. Batliboi & Associates LLP
- Legal Counsel to the Company – Trilegal
- Bankers to the Company – HDFC Bank, State Bank of India and Saraswat Co-op Bank Ltd
Divgi Torqtransfer Systems IPO Verdict by Stock Brokers
There is no review or stated words of any of the notable stock brokers operating in the country. We will update you on the detail as soon as they share their views on the Divgi Torqtransfer Systems IPO.
Divgi Torqtransfer Systems IPO – Conclusion
Divgi Torqtransfer Systems is a progressive and well-doing company. The company has progressing profits in the financial statements. The company’s customer base is very strong, and they supply their products to national and multinational entities. Their operations are growing at a large scale.
The investment in this company can be a rightful decision.
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Divgi Torqtransfer Systems IPO Review FAQs
Check out the FAQs on Divgi Torqtransfer Systems IPO –
What is the Issue Size of Divgi Torqtransfer Systems IPO?
The Company is making an initial public offer of 3,934,243 equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Divgi Torqtransfer Systems IPO?
The price band for this particular IPO ranges between Rs.Rs 560 to Rs 590. As far as the face value of the share is of concern, it is Rs.5 per share.
What is the Divgi Torqtransfer Systems IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Mar 1, 2023, while the closing date is set at Mar 3, 2023.
What is the Divgi Torqtransfer Systems IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on Mar 9, 2023, refund initiation is on Mar 10, 2023, credit of shares is on Mar 13, 2023, and share listing date is on Mar 14, 2023.
What is the Divgi Torqtransfer Systems IPO Listing Date?
Shares of this company shall be listed in the exchanges Mar 14, 2023. The date, when the listing would be done, is stagnant on Mar 14, 2023.
Who is the Registrar of Divgi Torqtransfer Systems IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Divgi Torqtransfer IPO?
Here are the promoters of this IPO – JITENDRA BHASKAR DIVGI, HIRENDRA BHASKAR DIVGIAND DIVGI HOLDINGS PRIVATE LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Divgi Torqtransfer IPO?
They have obtained the GMP of this IPO and it is Rs.40. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Divgi Torqtransfer IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Divgi Torqtransfer Systems Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2022 in Million is 461.51, 2021 is 380.44, 2020 is 280.39.
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