Divgi TorqTransfer Systems Limited IPO is set to launch on 1 March, 2023. The company initiated its business operations in 1964. It is engaged in the business as an automotive component entity. They develop and provide system level transfer cases, Dual Clutch Automatic transmission solutions and Torque couplers. They supply their transfer cases to OEMs in India. Apart from this the company is the leader in supplying the transfer cases pan India. The company is the sole manufacturer of torque couplers in India.
The company serves as both the component kit supplier and as a system level supplier in the Tier 1 Transmission system suppliers and global OEMs suppliers.
Divgi TorqTransfer Systems Limited IPO DETAILS
Divgi TorqTransfer Systems Limited IPO is set to launch on 1 March., 2023. The subscription timeline extends till 3 March, 2023. The size for the IPO is 412.12 Crore Rs. Shares issued through fresh issue mode are worth 180 Crore Rs. Shares are issued through offer for sale mode are worth Rs 232.12 Crore. The lot size is 25 shares and the price is 560 to 590 Rs per share. The company is going to get listed at BSE and NSE. The face value per share is Rs.5 and this is a Book Built issue. The registrar for the company is Link Intime India Private Limited.
Tabular Description of Divgi TorqTransfer Systems Limited IPO
| IPO OPENING DATE | 1 March., 2023 |
| CLOSING DATE FOR IPO | 3 March, 2023 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 5 Rs. per share |
| IPO price band | 560 to 590 Rs per share |
| LOT SIZE | 25 shares |
| MINIMUM ORDER QUANTITY | 25 shares |
| ISSUE SIZE | 412.12 Crore Rs. |
| OFFER FOR SALE | 232.12 Crore Rs. |
| FRESH ISSUE | 180 Crore Rs. |
| LISTING AT | BSE, NSE |
| LISTING DATE | 14 March, 2023 |
Divgi TorqTransfer Systems Limited IPO : IMPORTANT DATES
| IPO OPENING DATE | 1 March., 2023 |
| CLOSING DATE FOR IPO | 3 March., 2023 |
| IPO ALLOTMENT DATE | 9 March, 2023 |
| REFUNDS | 10 March, 2023 |
| DEMAT A/C CREDITED ON | 13 March, 2023 |
| IPO LISTING DATE | 14 March, 2023 |
Divgi TorqTransfer Systems Limited IPO begins for subscription from 1 March., 2023. The IPO subscription would continue till 3 March, 2023. The allotment status for the shareholders who applied would come on 9 March, 2023. The refunds for the ones who did not get allotment would be initiated on 10 March, 2023. The DEMAT accounts of shareholders would be credited on 13 March, 2023. The listing of the company would be accompanied on 14, March 2023.
Divgi TorqTransfer Systems Limited IPO : Lead Managers
The lead managers are :
- Inga Venture Private Limited
- Equirus Capital Private Limited
The minimum lot size for the company is decided at 25 shares. This holding accounts to 14750 Rs.. The maximum lot size is decided at 325 shares. This amounts to 191750 Rs.. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 25 shares | 14750 Rs. |
| Maximum | 325 shares | 191750 Rs. |
OBJECTIVES FOR THE IPO
- IPO proceeds would be used for general corporate purposes.
- The money raised will be also utilised for the working capital requirements.
- The IPO money will also be used for further expansion to purchase new plants and machinery.
COMPANY FINANCIALS
| Particularly (in Crore Rs.) | 2019-20 | 2020-21 | 2021-22 |
| ASSETS | 303 | 362 | 405 |
| Revenue | 170 | 191 | 245 |
| PAT | 28 | 38 | 46 |
Divgi TorqTransfer Systems Limited had an asset base of 303 Crore Rs in 2020. This went on to 362 Crore Rs in 2021 and 405 Crore Rs in 2022. The revenue of the firm was 170 Crore Rs in 2020 which increased to 191 Crore Rs in 2021 and 245 Crore Rs in 2022. The profit of the firm was 28 Crore Rs in 2020 which increased to 38 Crore Rs in 2021 and 46 Crore Rs in 2022. Overall the financials of the company look good on a YOY basis.
PROS
- What makes the company special is that it serves as both the component kit supplier and as a system level supplier in the Tier 1 Transmission system suppliers and global OEMs suppliers.
- They develop and provide system level transfer cases, Dual Clutch Automatic transmission solutions and Torque couplers. They supply their transfer cases to OEMs in India. Apart from this the company is the leader in supplying the transfer cases pan India. The company is the sole manufacturer of torque couplers in India.
CONS
- The company’s revenue is not even equal to the assets held by the company.
Divgi TorqTransfer Systems Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Divgi TorqTransfer Systems Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
