Divgi TorqTransfer IPO Day 2: The public supply of Nandan Nilekani household trust-backed Divgi TorqTransfer Systems has opened for subscription on Dalal Street on Wednesday. The subject might be obtainable for subscription until March 3.
Divgi TorqTransfer IPO: Subscription Status
Divgi TorqTransfer Systems’ preliminary public providing (IPO) obtained bids for 4.75 lakh fairness shares in opposition to a proposal dimension of 38.41 lakh amounting to a 12 per cent subscription on March 1, the primary day of bidding.
Retail buyers purchased 60 per cent shares of the entire portion put aside for them within the first IPO of 2023. High networth people (HNIs) bid for six per cent of the ten.47 lakh shares reserved for them.
We have seen bids for 700 shares by certified institutional patrons, in opposition to their reserved portion of 20.95 lakh shares.
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 subject 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’ll 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 house revenue of almost Rs 67 crore.
Other promoting shareholders within the OFS embody 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 no less than 25 shares and in multiples of 25 shares thereafter. Retail buyers 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 greater finish of the worth band.
Divgi TorqTransfer IPO: About Company
Divgi TorqTransfer develops and offers system-level switch case, torque coupler and DCT options, to automotive authentic tools producers via its three manufacturing and assembling services in India.
The firm claims to be the biggest provider of switch case programs to passenger automobile producers, the one participant manufacturing and exporting switch instances 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 periods. The fairness shares of the corporate are anticipated to record on March 14 on inventory exchanges BSE and NSE.
Should buyers subscribe to the difficulty? Here’s what specialists say:
ICICI Direct stated buyers can subscribe to the difficulty for long run positive factors as trailing valuations low cost its wholesome financials. “We like the corporate for its technical prowess in transmission area and incremental income streams approaching board going ahead in EV transmission in addition to twin clutch transmission area,” the brokerage stated.
Manish Khanna, Co-Founder, of Unlisted Assets, said: “The company is one of the leading players supplying transfer case systems to automotive OEMs and the largest supplier of transfer case systems to passenger vehicle manufacturers in India. They are in the process of designing and developing prototypes of transmission systems for electric vehicles. Divgi TorqTransfer Systems Limited is a dividend-paying company and has been reporting growth in its top line and bottom line. The company currently earns 35% from export customers and 65% from domestic customers. Considering the issue band price of Rs.560-Rs.590, the expected listing price could be Rs.655 (Upper band price plus the GMP). The IPO can give listing gains of up to 11 per cent.”
Nirmal Bang Securities really useful buyers to subscribe to the IPO, saying the corporate has an edge with its capability to fabricate numerous auto element merchandise that only a few available in the market replicate. “The IPO is being provided at cheap valuations at 39.1x FY22 earnings, contemplating the long run progress 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.
Read all of the Latest Business News right here
