Divgi TorqTransfer Systems slides on debut

Shares of Divgi TorqTransfer Systems were currently trading at Rs 570 at 10:13 IST on the BSE, a discount of 3.39% as against the issue price of Rs 590.

The scrip was listed at Rs 600, representing a premium of 1.69% to the issue price. So far, it has hit a high of 615.75 and a low of 561.75 during the trading session. Over 2.08 lakh shares of the company had changed hands in the counter till now.

The initial public offer (IPO) of Divgi TorqTransfer Systems (DTTS) received bids for 2,08,87,225 shares as against 38,41,800 shares on offer. The issue was subscribed 5.44 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 7.38 times. The Non Institutional Investors (NIIs) category was subscribed 1.40 times. The Retail Individual Investors (RIIs) category was subscribed 4.31 times.

The issue opened for bidding on 1 March 2023 and it closed on 3 March 2023. The price band of the IPO is fixed at Rs 560-590 per share.

The offer comprised fresh issue of aggregating to Rs 180 crore and offer for sale of 39,34,243 equity shares.

Of the net proceeds from fresh issue, the company proposed to utilize Rs 150.71 crore towards funding capital expenditure requirements for the purchase of equipments of its manufacturing facilities and balance towards general corporate purposes.

DTTS is one of the leading players supplying transfer case systems to automotive OEMs in India and the largest supplier of transfer case systems to passenger vehicle manufacturers in India.

A transfer case is a part of the drivetrain of four-wheel-drive, all-wheel-drive, and other multiple powered axle vehicles. The transfer case transfers power from the transmission to the front and rear axles by means of drive shafts.

The company manufactures and supplies a variety of products under the broad categories of torque transfer systems (which includes four-wheel-drive and all-wheel-drive products); synchronizer systems for manual transmissions and DCT; and components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs. It has also developed transmission systems for EVs; DCT systems; and rear wheel drive manual transmissions.

The company reported a net profit of Rs 25.66 crore and revenue from operations of Rs 133.72 crore for the six months ended on 30 September 2022.

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