Divgi TorqTransfer Systems is one of the very few automotive component companies in India with the ability to design and offer solutions for dual clutch automatic gearboxes, torque couplers, and transfer cases at the system level (Source: CRISIL Report). Divgi TorqTransfer Systems IPO will hit the stock market in January 2023.
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About Divgi TorqTransfer Systems
They are one of the top suppliers of transfer case systems to Indian automotive OEMs & the biggest provider of transfer case systems to Indian makers of passenger vehicles.
They are also the sole maker of torque couplers in India and the sole exporter of transfer cases to international OEMs. They are also capable of designing and supplying electric car transmission systems.
They have received a business prize for this reason, and they are now designing and creating prototypes of EV transmission systems.
They have been given a contract as of the date of this DRHP to supply EV transmission systems to one of the top EV manufacturers in India & for supply of components for Hybrid Vehicles for a global OEM.
Business
Divgi TorqTransfer System’s business actively works with transmission engineering consultancy companies in Europe including FEV and Hofer.
Divgi TorqTransfer System limited produce and provide a wide range of goods under the general headings of (i) torque transfer systems (which includes 4WD and AWD products); (ii) synchronizer systems for manual transmissions and DCT; and (iii) components for the aforementioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs.
Divgi TorqTransfer System limited have also created rear wheel drive manual transmissions, DCT systems, and transmissions for electric vehicles. They are one of the few businesses that provide both component kits and systems-level solutions to major worldwide OEMs and Tier I transmission system suppliers (Source: CRISIL Report).
Solutions
They can develop software internally, which aids them in supplying system-level solutions & software that regulates the dynamics of the vehicle.
They are also among the first few manufacturers of steel synchronizers in India and one of the top suppliers of carbon-based synchronizer systems for the Indian market.
Through a focus on innovation, the provision of tailored solutions in distinctive products, internal software development capabilities, and product development & production at quality standards acceptable to their customers and at reduced costs, they have attained leading positions for a select number of products in their portfolio.
They are currently introducing DCT systems made in India for the Indian market. They will be India’s sole DCT system manufacturer once they launch (Source: CRISIL Report).
Divgi TorqTransfer Systems IPO
Divgi TorqTransfer Systems Limited, headquartered in Visakhapatnam has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 200 Crore and 31,46,802Equity Shares on 21 September 2022.
The offer includes a fresh issue of INR 200 Crore and there is offer for sale (OFS) of 31,46,802 Equity Shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | |||
| Total Assets | 405.37 | 362.88 | 303.7.00 | ||
| Total Revenue | 241.87 | 195.03 | 170.74 | ||
| Profit After Tax | 46.15 | 38.04 | 28.04 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 11.64 | 11.64 | 3 |
| Financial Year 2021 | 13.82 | 13.82 | 2 |
| Financial Year 2022 | 16.76 | 16.76 | 1 |
| Weighted Average | 14.93 | 14.93 | |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
They feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- One of the few suppliers in India with the ability to develop & deliver system level transfer case, torque coupler, DCT solutions, and transmission systems for EVs across a wide range of automotive vehicles and geographies, as well as leadership in a few key product categories.
- Manufacturing facilities that are strategically positioned & capable of producing high-precision components that fulfill system-level design intent.
- Enduring connections with prestigious domestic and international clients.
- Senior executive team with experience is backed by a competent and skilled crew.
- Stable financial performance with an emphasis on creativity and R&D capacity.
Divgi TorqTransfer Systems Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Sona BLW Precision Forgings Limited | 83.00 |
| 2 | 10 | Bosch Limited | 40.99 |
| 3 | 5 | ZF Commercial Vehicle Control Systems India Limited | 126.83 |
| 4 | 1 | Sundram Fasteners Limited | 41.51 |
| 5 | 10 | Endurance Technologies Limited | 44.89 |
- All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
- The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on September 16, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.
Divgi TorqTransfer Systems IPO Details
| IPO Opening Date | January 2023 |
| IPO Closing Date | January 2023 |
| Issue Type | Book Building |
| Face Value | 5 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 200 Crore |
| Offer for Sale | 31,46,802 Equity Shares |
Divgi TorqTransfer Systems IPO Date
Divgi TorqTransfer Systems Limited IPO opening date is January 2023, and the closing date is January 2023. The Divgi TorqTransfer Systems issue may list in January 2023.
| IPO Opening Date | January 2023 |
| IPO Closing Date | January 2023 |
| Basis of Allotment Date | January 2023 |
| Initiation of Refunds | January 2023 |
| Credit of Shares to Demat Account | January 2023 |
| IPO Listing Date | January 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot based on availability |
Divgi TorqTransfer Systems IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Divgi TorqTransfer Systems IPO.
Divgi TorqTransfer Systems IPO GMP
Divgi TorqTransfer Systems Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
Divgi TorqTransfer Systems Limited IPO Review
Divgi TorqTransfer Systems Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Divgi TorqTransfer Systems IPO is good or bad.
Divgi TorqTransfer Systems Limited IPO Risk
- Their top five customers account for a major portion of their revenue, therefore losing these clients or seeing a materially reduced level of business from them would be disastrous for their operations.
- Volatility in raw material & component prices or availability could have a negative impact on their business.
- Their plans to seize market share in the expanding EV industry as well as other new initiatives may not be implemented with the desired result.
- Their business is susceptible to expenses, risks, & uncertainties, including those related to tariffs, trade relations, & global political conditions, as well as rules & regulations in the domestic and international jurisdictions in which they operate. Their business and operations may suffer if applicable laws, health, & safety requirements are broken.
Other Threats
- Cost fluctuations in logistics and transportation could have a detrimental effect on their cash flow & revenue.
Their Company was designated a “Sick Company” under the terms of the Sick Industrial Companies (Special Provisions) Act, 1985, and referred to the Board for Industrial & Financial Reconstruction. - Their company operations could all be negatively impacted by the COVID-19 pandemic or a comparable public health hazard.
- They are vulnerable to changes in foreign exchange rates, which could have a negative impact on their operational results & create considerable swings in their quarterly results.
- They rely on the effectiveness of their R&D, and if they are unable to create new or improved products it could result in write-offs or have other negative effects on their firm.
Divgi TorqTransfer Systems Limited IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Divgi TorqTransfer Systems IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Divgi TorqTransfer Systems Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| January 2023 | 1 | |||||
| January 2023 | 2 | |||||
| January 2023 | 3 |
Divgi TorqTransfer Systems Limited Management
They are headed by a board of directors with substantial industry experience, as well as a management team with professional credentials and a track record of success.
Jitendra and Hirendra Bhaskar Divgi, the company’s promoters, is mechanical engineers with more than 30 years of expertise in the automobile market.
Their chairman, Praveen Purushottam Kadle, has a wealth of experience and is currently Tata AutoComp Systems Limited’s non-executive chairman.
A qualified board of directors with a variety of specialties that actively participates in and supports their plan provides them with additional support.
They have worked with several of their senior management staff members for a long time, which has led to efficient operational coordination and continuity of business plans.
Divgi TorqTransfer Systems Limited‘ Promoters
- Jitendra Bhaskar Divgi
- Hirendra Bhaskar Divgi
- Divgi Holdings Private Limited
Principal Shareholder’s Holding
| Pre Issue Share Holding | 62.64% |
| Post Issue Share Holding |
Divgi TorqTransfer Systems Limited Prospectus
Contact Details
Divgi TorqTransfer Systems Limited
Plot No. 75, General Block, MIDC,
Bhosari, Pune 411026
Tel:+91 020 – 27302000
E-mail: [email protected]
Website: www.divgi-tts.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai 400 083, Maharashtra, India
Telephone: +91 (22) 4918 6200
E-mail :[email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Inga Ventures Private Limited
- Equirus Capital Private Limited
We hope we are able to answer all your questions about Divgi TorqTransfer Systems IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Divgi TorqTransfer Systems Limited IPO Opening Date?
Divgi TorqTransfer Systems Limited IPO will open in January 2023.
Divgi TorqTransfer Systems Limited IPO Listing Date?
Divgi TorqTransfer Systems Limited IPO will list in January 2023.
Divgi TorqTransfer Systems IPO GMP Today?
Divgi TorqTransfer Systems IPO Grey Market Premium is INR 0 .
Divgi TorqTransfer Systems Limited IPO Allotment Date?
Divgi TorqTransfer Systems Limited IPO basis of allotment will be in January 2023.
Lot size for Divgi TorqTransfer Systems Limited IPO?
Lot size for Divgi TorqTransfer Systems Limited IPO is 0.
