Automotive element maker Divgi TorqTransfer Systems will change into the primary firm to launch its preliminary public providing (IPO) in 2023 when the difficulty opens for subscription on March 1 until March 3.
Divgi TorqTransfer IPO: Price Band
The auto elements maker has fastened a worth band of Rs 560-590 per fairness share and on the higher finish, the general public difficulty is anticipated to fetch round Rs 412 crore. The shares are anticipated to get listed on the exchanges on March 14.
Divgi TorqTransfer IPO: Offer Size
As a part of the OFS, Oman India Joint Investment Fund will offload 22,50,000 shares, whereas Nilekani’s household belief NRJN Family will promote 14,41,441 shares.
Nilekani household belief will bag round 360 per cent revenue for its funding within the firm when it is going to offload 14.4 lakh shares as a part of OFS. According to the prospectus Nilekani’s belief acquired shares on a median value of Rs 125.28. Considering the higher worth band of Rs 590, the belief will take dwelling revenue of practically Rs 67 crore.
Other promoting shareholders within the OFS embrace Bharat Bhalchandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag.
Divgi TorqTransfer IPO: Lot Size
Investors can bid for at least 25 shares and in multiples of 25 shares thereafter. Retail traders could make a minimal funding of Rs 14,750 for a single lot and a most of Rs 1,91,750 for 13 heaps, on the larger finish of the worth band.
The firm has reserved 75 per cent of the difficulty measurement for certified institutional patrons, 15 per cent for non-institutional traders (excessive networth people, and the remaining 10 per cent for retail traders.
Divgi TorqTransfer IPO: About Company
Divgi TorqTransfer develops and offers system-level switch case, torque coupler and DCT options, to automotive unique tools producers via its three manufacturing and assembling amenities in India.
The firm claims to be the biggest provider of switch case methods to passenger automobile producers, the one participant manufacturing and exporting switch circumstances to international OEMs from India and the one producer of torque couplers in India, as per CRISIL report.
Divgi TorqTransfer IPO: GMP
As per market observers, Divgi TorqTransfer Systems shares have been commanding a premium (GMP) of Rs 60 within the gray market within the earlier classes. The fairness shares of the corporate are anticipated to listing on March 14 on inventory exchanges BSE and NSE.
Should traders subscribe to the difficulty? Here’s what consultants say:
Parul Sharma, Research Analyst, Samco Securities, advisable traders to subscribe to the IPO, citing sound financials and favorable future development potential in the long term.
“The firm is amongst the only a few automotive elements entities in India which have the potential to develop and supply system-level switch case, torque coupler, dual-clutch transmission options. The difficulty seems to be attractively priced at a P/E ratio of 35x when in comparison with its listed friends,” Sharma said.
ICICI Direct said investors can subscribe to the issue for long term gains as trailing valuations discount its healthy financials. “We like the company for its technical prowess in transmission space and incremental revenue streams coming on board going forward in EV transmission as well as dual clutch transmission space,” the brokerage mentioned.
Nirmal Bang Securities advisable traders to subscribe to the IPO, saying the corporate has an edge with its potential to fabricate numerous auto element merchandise that only a few available in the market replicate. “The IPO is being supplied at affordable valuations at 39.1x FY22 earnings, contemplating the long run development alternatives,” it said.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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