Divgi TorqTransfer Systems (Divgi Torq) is headed for a muted debut at Dalal Street on Tuesday, if one goes by the signals from the grey market. The listing prospects of the company have taken a serious hit lately.
Last heard, Divgi Torq was commanding a premium of Rs 10-15 in the unofficial markets, a mild premium over its issue price of Rs 590 apiece. Its grey market premium has been diminishing since the issue is inching closer to its debut at the bourses on Tuesday, March 14.
According to the analysts tracking the grey market, Divgi Torq’s listing prospects have been hit by its muted subscription levels, aggressive prices, correction in the broader markets and flow shown by recent mainboard IPOs.
Abhay Doshi, co-founder of UnlistedArena said that valuations of Divgi Torq’s issue were not very much attractive for the investors, leaving limited room for the investors and even the issue failed to attract the investors at large.
“The broader market continues to remain in the corrective phase and a number of stocks have been hammered recently. This is spooking the investors’ sentiments,” he added. “Even the performance of recently listed companies was muted, which is further denting the morale.”
The Rs 412-crore initial public offering (IPO) of Divgi TorqTransfer Systems was open for subscription between March 1 and March 3, 2023. The company offered its shares in the range of Rs 560-590 apiece, with a lot size of 25 equity shares and the issue received a mild subscription.
Divgi Torq was overall subscribed 5.44 times, with Qualified Institutional investors’ portion getting subscribed 7.83 times. The quota for non-institutional bidders was booked 1.4 times, whereas retail investors allocation fetched 4.31 times bidding.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart the majority of its business is dependent on a few customers, and geopolitical risk and competition from global players are some concerns. “The premium for Divgi Torq is declining in the grey market and the current market condition is also not favorable. So we can anticipate its listing at around Rs 600,” he said.
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