Auto component manufacturer Divgi TorqTransfer Systems’ initial public offering would open for subscription on March 1, 2023. The three-day initial share sale would conclude on March 3. Anchor investors can place their bids on February 28.
The IPO would comprise a fresh issue of equity shares aggregating up to Rs 180 crore and an offer for sale (OFS) of up to 39,34,243 equity shares by investors and other selling shareholders, according to the red herring prospectus (RHP).
As part of the OFS, Oman India Joint Investment Fund II, NRJN Family Trust, Bharat Bhachandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag would offload shares.
Oman India holds a 21.71 per cent stake in the company, while NRJN has an 8.71 percent shareholding. Bharat Divgi, Sanjay Divgi and Ashish Divgi hold 0.72 per cent, 0.59 per cent and 0.76 per cent stakes, respectively. Arun Idgunji and Kishore Kalbag held 0.16 per cent, each.
The company said proceeds from the fresh issue would be used towards funding capital expenditure requirements for the purchase of equipment for its manufacturing facilities and general corporate purposes.
Mahindra & Mahindra, Tata Motors and Toyota Kirloskar Auto Parts are among the company’s customers. It also operates in the UK, the USA, China, Thailand, Korea and Japan.
The company manufactures manual transmissions, DCT, transfer cases, torque couplers & auto-locking hubs (ALH), essential components for 4WD/ AWD vehicles, Synchronizers for transmissions (gearboxes) and components. It mainly caters to the passenger and small commercial vehicle industry.
In addition, it is venturing into EV (Electric Vehicle) transmissions. “We seek to purchase equipment for manufacturing and maintaining a high level of precision of gears and components required for the manufacture of EV transmissions and upgrade the facilities to meet the demand and to improve productivity to bring down manufacturing costs,” Divgi TorqTransfer stated in the RHP.
The company has manufacturing facilities in Bhosari and Shivare in Pune and Sirsi in Karnataka.
Inga Ventures and Equirus Capital are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.
On the earnings front, the firm reported revenue of Rs 233.78 crore in fiscal 2022 against Rs 186.58 crore a year ago. Net profit for the mentioned year came at Rs 46.15 crore, over Rs 38.04 crore in the same period a year ago.
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