Divgi TorqTransfer Systems IPO Subscribed 38% on second day of offer

The initial public offering (IPO) of Digvi Torq Transfer Sytems has been subscribed 38 per cent on Thursday,  the penultimate day of the issue. The institutional portion was subscribed by 6 per cent, the wealthy investors subscribed by 22 per cent and the retail portion by 1.5 times.

On Monday the company allotted 31.4 lakh shares worth Rs 185 crore to anchor investors. Divgi Torq Transfer Systems had priced its initial public offering (IPO) between Rs 560 to Rs 590 per share.

The IPO comprises a fresh issue of Rs 180 crore and an offer for the sale of up to 39.34 lakh shares. The OFS 22.5 lakh shares of Oman India Joint Investment Fund, up to 14. 4 equity shares of NRJN Family Trust established by Nandan Nilekani ( NRJN Family Trust owns an 8.7 per cent stake in the company), and 2.4 lakh equity shares by certain non-promoter shareholders of the company.
 

At the upper end of the price band, the issue could raise to Rs 412 crore.

The company plans to utilize the net proceeds of the fresh issue for funding capital expenditure requirements, and for the purchase of equipment for its manufacturing facilities.

The company manufactures and supplies torque transfer systems and synchronizer systems for manual transmissions.

The company has three manufacturing and assembling facilities at Sirsi in Karnataka, Shivare and Bhosari near Pune in Maharashtra, and one under-construction manufacturing facility located at Shirwal, Maharashtra.

The company designs develop, manufactures and supplies turnkey solutions and components to automotive original equipment manufacturers (OEMs) across India, USA, China, Korea and Russia, amongst others.