Divgi TorqTransfer Systems IPO will open for subscription from 01 March 2023. the company aims for an issue size of ₹412 crores through this IPO.
About Company
The company is amongst the few automotive component entities in India with the capability to develop and provide system-level transfer cases, torque couplers, and dual-clutch automatic transmission (DCT) solutions. The company is one of the leading players supplying transfer case systems to automotive OEMs in India and the largest supplier of transfer case systems to passenger vehicle manufacturers in India. It is also the only player manufacturing and exporting transfer cases to global OEMs from India, and the only manufacturer of torque couplers in India.
It also has the capability to develop and provide transmission systems for electric vehicles (EVs). The company has been awarded a contract for the supply of EV transmission systems for one of the leading providers of EVs in India, and for the supply of components for Hybrid Vehicles for a global OEM. Divgi TorqTransfer manufactures and supplies a variety of products categories:
- Torque transfer systems including 4WD and AWD products
- Synchronizer systems for manual transmissions and DCT
- Components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs.
Alongside, they have also developed
- Transmission systems for EVs;
- DCT systems;
- Rear wheel drive manual transmissions.
The company has three manufacturing and assembling facilities located at Sirsi in Karnataka, and Shivare and Bhosari near Pune in Maharashtra.
Basic details about the company
| Full name | Divgi TorqTransfer Systems Limited |
| Sector | Capital Goods |
| Industry | Engineering |
| Company Website | https://divgi-tts.com// |
The objective of the Issue
- Funding capital expenditure requirements for the purchase of equipment/machinery for our manufacturing facilities;
- General corporate purposes.
Major Competitive strengths
- One among the very few automotive component entities in India.
- Divgi TorqTransfer is one of the leading players supplying transfer case systems to automotive OEMs in India.
- the largest supplier of transfer case systems to passenger vehicle manufacturers in India.
- only player manufacturing and exporting transfer cases to global OEMs from India.
- only manufacturer of torque couplers in India.
IPO Timetable
| IPO Opening date | 01 March 2023 |
| IPO Closing | 03 March 2023 |
| Basis of Allotment | 09 March 2023 |
| Initiation Refund | 10 March 2023 |
| Credit to Demat Account | 13 March 2023 |
| Listing Date | 14 March 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹412 Cr |
| Fresh Issue | ₹180 Cr |
| Offer for sale | ₹232 Cr – 3,934,243 shares |
| Face value | ₹5 per share |
| Price Band | ₹560 to ₹590 per share |
| Lot size | 25 Shares |
| Retail Allocation | 10% of the Offer |
| Listing Exchange | BSE&NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 25 | ₹14,750 |
| Retail (Max) | 13 | 325 | ₹191,750 |
| S-HNI (Min) | 14 | 350 | ₹206,500 |
| B-HNI (Min) | 68 | 1,700 | ₹1,003,000 |
Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | H1 FY 2023 | |
| Revenue | 159.1 | 186.6 | 233.8 | 133.7 |
| Expenses | 133 | 142.5 | 179.7 | 103.0 |
| Net income | 28 | 38 | 46.2 | 25.7 |
| Margin (%) | 17.6 | 20.4 | 19.8 | 19.2 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 10.18 | 13.82 | 16.76 |
| PE ratio | – | – | 33.41 – 35.20 |
| RONW (%) | 13.38 | 12.86 | 13.57 |
| NAV | – | – | 123.50 |
| ROCE (%) | 16.2 | 17.8 | 18.3 |
| EBITDA (%) | 23.22 | 27.82 | 28.07 |
| Debt/Equity | 0.24 | 0.00 | 0.00 |
Company Promoters
- Jitendra Bhaskar Divgi
- Hirendra Bhaskar Divgi
- Divgi Holdings Private Limited
Promoter Holding
| Pre Issue Share Holding | 67.18% |
| Post Issue Share Holding | —— |
Lead Manager(s)
- Inga Ventures Pvt Ltd
- Equirus Capital Private Limited
IPO Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +022 49186200
Email: Divgi.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
DIVGI TORQTRANSFER SYSTEMS LIMITED
Plot No. 75, General Block, MIDC,
Bhosari, Pune 411026
Phone: +91 020 – 27302000
Email: sckadrolli@divgi-tts.com
Website: www.divgi-tts.com
Allotment Status
Divgi TorqTransfer IPO allotment will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Final thoughts
Divgi TorqTransfer Systems IPO is going to hit Dalal street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
