Divgi TorqTransfer Systems IPO oversubscribed by 5.44 times

Divgi TorqTransfer Systems IPO oversubscribed by 5.44 times

Divgi TorqTransfer Systems IPO Receives Strong Response, Oversubscribed by 5.44 Times

Automotive components manufacturer, Divgi TorqTransfer Systems, has received a strong response to its initial public offering (IPO), which closed on March 3. The IPO was oversubscribed by 5.44 times, with bids received for 2.08 crore equity shares against the offer size of 38.41 lakh.

Qualified institutional buyers (QIBs) showed significant interest in the IPO, subscribing to 7.83 times their share quota during the three-day bidding period. Retail investors bid 4.31 times the portion reserved for them, while high net worth individuals bid 1.4 times their allotted quota.

This IPO, the first of 2023, comprised a fresh issuance of shares worth Rs 180 crore and an offer for sale of shares worth Rs 232.12 crore by non-promoters. The offer was priced at Rs 560-590 per share.

Divgi plans to use the proceeds from the fresh issue to purchase equipment and for general corporate purposes. The company provides system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions to automotive firms.

The share allotment for the IPO is expected to be finalized by March 9, with Divgi set to make its market debut on March 14.

About Divgi TorqTransfer Systems:

Divgi Metalwares Private Limited was established in 1964 as a small-scale manufacturing enterprise specializing in the manufacturing of gears and screwed machined parts. Serial entrepreneurship combined with a robust foundation in gear technology and manufacturing enabled the founding members, Ramarao and Bhaskar Divgi to carve a niche for themselves in a daunting marketplace that was strife with uncertainty and complexities of that era.

Creativity and innovation enabled the company to develop its capabilities and competencies which won the attention of a new generation of customers such as John Deere, JCB, Caterpillar and Borg Warner. The relationship with Borg Warner grew into a market development arrangement that quickly metamorphosed into a joint venture in 1995. The JV was dissolved in 2016 and Divgi TorqTransfer Systems was formed as an independent company. Divgi TTS has evolved to become one of India’s leading Tier 1 companies in the design, development and manufacturing of advanced drivetrain components and systems.

The company has a diverse portfolio of products which includes mechanical as well as electrical 4×4 transfer cases, interactive torque couplers, dual & triple cone steel synchronizers, dual clutch automatic transmissions, 5 & 6 speed manual transmissions and single speed electric vehicle (EV) transmission.

Divgi TTS has, over the years built an enviable customer base which includes Toyota, Mahindra & Mahindra, Tata Motors. The company has stamped its global footprint being a trusted supplier to customers in UK and USA in the west to China, Thailand, Korea and Japan in the east.

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