IPO Details

Bidding Dates

28 Feb '23 - 02 Mar '23

Minimum Investment

₹14,750 / 1 Lots ( 25 Shares )

Price Range

₹560 - ₹590

Maximum Investment

₹191,750 / 13 Lots ( 325 Shares )

Retail Discount

To be announced

Issue Size

₹180.00 Cr

Investor category and sub category

Qualified Institutional Buyers  |   Non-Institutional Investors  |   Retail Individual Investors   |  

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Open Date

Feb 28, 2023

IPO Close Date

Mar 2, 2023

IPO Allotment Date

Mar 8, 2023

Initiation Of Refunds

Mar 9, 2023

Credit Of Shares To Demat Account

Mar 12, 2023

IPO Listing Date

Mar 13, 2023

IPO Subscription Details

DateQIBNIIRetailTotal

Day 1Feb 28, 2023

 0.00 0.06 0.60 0.12

Day 2Mar 1, 2023

 0.06 0.22 1.56 0.38

Day 3Mar 2, 2023

 7.83 1.40 4.31 5.44

IPO Subscription Status Live

Investor Category Subscription (Times)
Qualified Institutions Buyers 7.83
Non-Institutional Buyers 1.40
Retail Investors 4.31
Employees [.]
Others [.]
Total 5.44

About Divgi TorqTransfer Systems Ltd.

The company is among the few Indian companies and a leading player in manufacturing and supplying transfer case systems and dual-clutch automatic transmissions (DCT) to automotive OEMs in India. They are the only Indian player supplying transfer cases to global OEM companies. 

They manufacture and supply a variety of products under the broad categories of 

  • Torque transfer system for four-wheel and all-wheel drive
  • Synchroniser system for manual transmission and DCT
  • Transmission system for EVs
  • Rear wheel drive manual system

The company's profit in the quarter that ended in March FY22 was ₹46.15 crore, an increase of 21.3% from the previous year. In the same period, revenue from operations recorded a 25.3% increase to ₹234 core, with ₹213.4 crore income received from the top five customers.

On the operating front, EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 26.4% to ₹65.6 crore with a margin expansion of 25 bps at 28.06% from FY21. In the six-month period that ended on September 30, 2022, the company made a profit of ₹25.66 crore against a revenue of Rs 133.72 crore.

Fortunately, the company has also reduced its borrowings significantly to ₹0.26 crore in FY21 from ₹50.41 crore in FY20. At the end of September 30 2022, it had a borrowing of ₹0.5 crore. 

Divgi TorqTransfer Systems Ltd. IPO Objective

  • To fund capital expenditure requirements to buy equipment/machinery for their manufacturing facilities and meet general corporate purposes.

Why should you invest in the Divgi TorqTransfer Systems Ltd. IPO?

Here are your top reasons to invest in the IPO. 

  • It is one of the few Indian companies to have served both systems-level solution providers and component kit suppliers to global OEMs and Tier-I transmission systems suppliers.
  • The management has thirty-plus years of experience in the automotive industry. 
  • They offer turnkey solutions and components to automotive OEMs across India, the USA, China, Korea, Russia, and others.
  • They cater to a domestic and global clientele of marquee customers.

Divgi TorqTransfer Systems Ltd. Noteworthy Highlights

  • Their top five customers contributed 91.28%, 92.86%, and 86.94% of total revenue in the last three fiscal years of 2022, 2021, and 2020 respectively. 
  • Between 2020 and 2022 fiscals, the company recorded a 28.30% CAGR in their profit after tax (PAT). 
  • The Indian EV market is expected to grow by 108-110% CAGR from 2021-2026 in volume and value.

Divgi TorqTransfer Systems Company Financials

Parameters Year ending on As on 31st March, 2022 Year ending on 31st March, 2021 Year ending on 31st March, 2020
Revenue from operation 2337.77 1865.75 1590.65
Profit After Tax 461.51 380.44 280.39
EBITDA 656.13 518.99 369.35
Current Assets 2,635.45 2,496.11 609.92
Current Liabilities 598.76 609.92 886.22

Know before investing

Strengths

3

  1. Strategically located manufacturing facilities capable of manufacturing high-precision components meeting system-level design intent.

  2. They offer turnkey solutions and components to automotive OEMs across India, the USA, China, Korea, Russia and others.

  3. They cater to a domestic and global clientele of marquee customers.

Risks

3

  1. Their business is concentrated on the top five customers. So a loss of any customer will impact their business adversely.

  2. Price volatility of raw materials and components can adversely affect the company’s future revenue.

  3. To stay competent they must quickly anticipate and adapt to the changing demands of their customers.

  • How to Apply in IPO
  • How to Check IPO Allotment Status
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Competitive Peers

Company Name P/E ratio EPS (Basic) NAV per equity
Divgi TorqTransfer Systems Ltd. NA 16.76 123.50
Sona BLW Precisions Foreigners Ltd. 83.00 6.22 34.23
Bosch Ltd. 40.99 413.10 3,621.05
ZF Commercial Vehicle Control Systems India Ltd. 126.83 74.90 1,114.57
Sundram Fasteners Ltd. 41.51 21.74 125.46
Endurance Technologies Ltd 44.89 32.75 278.66

Divgi TorqTransfer Systems IPO FAQs

What is Divgi TorqTransfer Systems Ltd. IPO?

Divgi TorqTransfer Systems Ltd. SME IPO opens on march 1, 2023. The offer comprises fresh equity shares worth ₹180.00 crore and an offer for sale of 3,934,243 scripts at a face value of ₹5.

When will Divgi TorqTransfer Systems Ltd. IPO allotment be available?

The IPO shares of Divgi TorqTransfer Systems Ltd. will be allotted on March 09, 2023.

What will be the Divgi TorqTransfer Systems Ltd. IPO lot size?

One lot of Divgi TorqTransfer Systems Ltd. IPO has 25 shares.

When will Divgi TorqTransfer Systems Ltd. IPO open for subscription?

The IPO will open on March 01, 2023.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for a minimum of one lot.

When will Divgi TorqTransfer Systems Ltd. list on exchanges?

The shares will list on the BSE and NSE exchanges on March 14, 2023.

How to check the allotment status of Divgi TorqTransfer Systems Ltd. IPO?

Angel One investor must log in to their accounts to check Divgi TorqTransfer Systems Ltd. IPO allotment status.

When checking the allotment status, keep your application, DP ID, and PAN number ready. 

What would be the listing gains on the Divgi TorqTransfer Systems Ltd. IPO?

Listing gain is the difference between the IPO’s opening and offer prices.

The listing gain is a result of changing investors’ interests, global parameters, and short vs long-term outlooks.

I have finished the application process for the Divgi TorqTransfer Systems Ltd. IPO, but the funds are not yet debited. What is the reason?

The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date. 

How to approve the UPI mandate request for Divgi TorqTransfer Systems Ltd. IPO?

Login to your UPI handle and approve the payment mandate to complete the IPO application process.

Can I submit more than one application for the public issue of Divgi TorqTransfer Systems Ltd. using one PAN?

You can submit only one application using one PAN card.

What is the minimum order quantity for Divgi TorqTransfer Systems Ltd. IPO?

The minimum size of the application will be one lot of 25 shares.