Divgi TortTransfer Systems had a decent debut at Dalal Street on Tuesday as the counter listed at a mild premium. However, the stock saw some strong profit booking after initial gains, before turning flat in the afternoon session during its maiden session.
Against an issue price of Rs 590 apiece, shares of Divgi Torq listed at a premium of 5 per cent to Rs 620 on National Stock Exchange (NSE). Similarly, the stock made its debut at Rs 600 on BSE, a mild premium of 2 per cent over its issue price.
During the session, the stock hit a high of Rs 615.75 and it tested a low of Rs 557.20 on profit booking. However, the stock gave up its entire gains and was trading almost flat at Rs 591.05, near its issue price of Rs 590. Market analysts suggest that it is a good long-term buy and can be bought on dips
Pravesh Gour, Senior Technical Analyst, Swastika Investmart said the stock had a flat-to-positive listing because of equity market sentiments. The issue had also received a good response from investors on both the institutional and retail investors.
“It is dealing in a niche segment with high entry barriers and has the advantage of an experienced management team, ” he said. “The current market condition is also not favorable. “Investors are advised to maintain their stop-loss at Rs 610 and wait for further upside, whereas those who have a medium- to long-term perspective can hold the stock.”
The Rs 412 crore initial public offering (IPO) of Divgi TorqTransfer Systems was open from March 1 to March 3, 2023. The company offered its shares in the range of Rs 560-590 apiece, with a lot size of 25 equity shares.
Divgi Torq was subscribed 5.44 times, with Qualified Institutional investors’ portion getting 7.83 times bids. The quota for non-institutional bidders was booked 1.4 times, whereas retail investors’ allocation fetched 4.31 times bidding.
Echoing the similar tone, Ravi Singhal, CEO, GCL Broking said that Divgi Torq looks good for a long-term perspective but the market sentiments are not very conducive. “Investors should ‘buy the dips’ in the stock. One should try to accumulate a counter near Rs 440 levels for a long-term view,” he said.
Pune-based Divgi TorqTransfer Systems is engaged in the business as an automotive component entity. Incorporated in 1964, the company is among very few automotive component entities in India with the capability to develop and provide system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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