Last Updated: March 14, 2023, 11:02 IST
Divgi TorqSwitch Systems
Pune-based Divgi TorqSwitch Systems is engaged within the enterprise as an automotive part entity
Nandan Nilekani-backed Divgi TorqSwitch Systems shares listed at over a 5 per cent premium over IPO worth, at Rs 620 on the NSE amid a flat home market. Similarly, the inventory started its innings at Rs 600 on BSE, simply 2 per cent up from its challenge worth.
The IPO was subscribed 5.44 instances, led by retail buyers. About 75 per cent of the supply was reserved for certified institutional patrons (QIBs), 15 per cent for non-institutional buyers and 10 per cent for retail buyers.
The retail a part of the problem was subscribed 4.31 instances, whereas non-institutional buyers (NIIs) made bids 1.4 instances greater than the reserved bit. The certified Institutional Buyers (QIBs) portion was subscribed 7.83 instances greater than the allotted half.
Divgi TorqSwitch Systems’ Rs 412 crore IPO concluded on 3 March. The worth band for the IPO has been mounted at Rs 560-590 a share. The worth band for the IPO has been mounted at Rs 560-590 a share. Divgi TorqSwitch Systems IPO includes a contemporary challenge of 85.20 lakh shares and a sale of 39.3 lakh shares by promoters and shareholders, together with by Oman India Joint Investment Fund and Nandan Nilekani (Family Trust).
Ahead of listed Divgi Torq was commanding a premium of Rs 10-15 within the gray market, hinting in the direction of a list at gentle premium over its challenge worth. The itemizing has been on related strains, regardless of the volatility within the broader markets.
Pune-based Divgi TorqSwitch Systems is engaged within the enterprise as an automotive part entity. Incorporated in 1964, the corporate is amongst only a few automotive part entities in India with the aptitude to develop and supply system-level switch circumstances, torque couplers, and dual-clutch computerized transmission options.
The automotive participant primarily caters to the passenger and small business car business however it’s venturing into EV (Electric Vehicle) transmissions. The firm has manufacturing services in Bhosari and Shivare in Pune and Sirsi in Karnataka.
What Should Investors Do Now?
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, stated: “Divgi TorqSwitch Systems shares have debuted as a flat-to-positive itemizing at Rs. 620 (+5 per cent) to its challenge worth, due to fairness market circumstances. The challenge had additionally obtained an excellent response from buyers on each the institutional and retail sides. It is dealing in a distinct segment section with excessive entry obstacles. Divgi TTS has the benefit of an skilled administration workforce. The firm had additionally demonstrated constant monetary efficiency over time. However, nearly all of its enterprise relies on a couple of clients, and geopolitical threat and competitors from international gamers are some issues. The challenge had a P/E valuation of 35x, which was pretty priced. The present market situation can be not favorable. So, allottees who utilized for the general public providing for itemizing premium are suggested to keep up their stop-loss at 610 and anticipate additional upside, whereas those that have a medium- to long-term perspective can maintain the inventory.”
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