Divgi Torqtransfer Systems IPO
IPO Details
- Open Date
01 Mar 2023
- Close Date
03 Mar 2023
- IPO
Price Range
₹ 560 to ₹ 590
- IPO
Size
₹ 180.00 Cr
- Listing Exchange
BSE, NSE
- Listing Date
14 Mar 2023
IPO Timeline
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 |
Last Updated: 06 March 2023 7:43 PM by 5Paisa
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
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.
Check Out Web-Stories on Divgi Torqtransfer Systems IPO
| 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% |
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
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FAQs
The price for the Divgi Torqtransfer Systems IPO is set at Rs. 560 - 590 per share
The Divgi Torqtransfer Systems IPO opens on 1st March and closes on 3rd March.
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.
The allotment date of Divgi Torqtransfer Systems IPO is set for 9th March
The Divgi Torqtransfer Systems IPO will be listed on 14th March.
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).
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
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
Divgi Torqtransfer Systems IPO is promoted by Jitendra Bhaskar Divgi, Hirendra Bhaskar Divgi and Divgi Holdings Private Limited.
Inga Ventures Pvt. Ltd. and Equirus Capital Ltd. are the book running lead managers to the Divgi Torqtransfer Systems IPO.
Contact Information
Divgi Torqtransfer Systems
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