Divgi TorqTransfer IPO Day 3: The preliminary share sale of auto part maker Divgi TorqTransfer Systems to boost as much as Rs 412 crore was subscribed 38 per cent on Thursday — the second day of the bidding course of. The public supply of Nandan Nilekani household trust-backed Divgi TorqTransfer Systems opened for subscription on Dalal Street on Wednesday. The concern shall be obtainable for subscription until March 3.
The foundation of allotment is prone to be finalised on March 9, the initiation of refunds on March 10 and the credit score of shares on March 13. Shares of the corporate shall be listed on March 14 on the BSE and NSE.
Divgi TorqTransfer IPO: Subscription Status
The preliminary public providing of automotive part producer Divgi TorqTransfer Systems was subscribed 38 per cent on the second day of supply on Thursday.
The share sale acquired bids for 14,49,000 shares as in opposition to 38,41,800 shares on supply, based on NSE knowledge.
The portion for Retail Individual Investors (RIIs) acquired 1.56 instances subscription, whereas non institutional traders class received subscribed 22 per cent and Qualified Institutional Buyers (QIBs) acquired 6 per cent subscription.
Divgi TorqTransfer IPO: Price Band
The auto parts maker has mounted a worth band of Rs 560-590 per fairness share and on the higher finish, the general public concern is predicted 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 price 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 tons, on the larger finish of the worth band.
Divgi TorqTransfer IPO: About Company
Divgi TorqTransfer develops and gives system-level switch case, torque coupler and DCT options, to automotive unique gear producers by its three manufacturing and assembling services in India.
The firm claims to be the most important provider of switch case programs to passenger car producers, the one participant manufacturing and exporting switch instances to world OEMs from India and the one producer of torque couplers in India, as per CRISIL report.
Divgi TorqTransfer IPO: GMP
According to market specialists, the gray market premium, which signifies the premium commanded by the corporate within the unlisted market, is at present at Rs 65 on March 1, which reveals potential itemizing features of 11%, if we contemplate the higher worth band.
Should traders subscribe to the difficulty? Here’s what specialists say:
Analysts count on the corporate to ship in the long run and traders with a long-term view can bid for the IPO.
“The firm’s sturdy stability sheet and constructive working money flows allow it to fund its strategic initiatives, pursue alternatives for progress and handle unanticipated money stream variations,” said Hem Securities, which has a subscribe recommendation with long-term view.
Most brokerages are pleased with the company’s financials till FY22. “The company is virtually debt free as of September 2022. On valuation front, the company is available at 35.20x PE for FY22 which is quite attractive to the industry peers,” stated Canara Bank Securities with a subscribe suggestion.
Other brokerages ICICI Direct and Nirmal Bang Securities too have a “subscribe” recommendation to the issue.
Some of the key risks that could derail the company’s journey include its high concentration of revenue from few customers. Divgi is a business to business (B2B) manufacturing company, which gets a large chunk of revenue from top five customers Mahindra & Mahindra, Tata Motors, Toyota Kirloskar Auto Parts, BorgWarner and a Russian automobile manufacturer.
“The overseas sales are primarily dependent on two countries, China and Russia, which exposes the company to concentration risks,” stated Canara Bank Securities.
Disclaimer:Disclaimer: The views and funding suggestions by specialists on this News18.com report are their very own and never these of the web site or its administration. Users are suggested to verify with licensed specialists earlier than taking any funding choices.
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