Divgi TorqTransfer Systems IPO
Divgi TorqTransfer Systems IPO — date, price band, lot size & details 2023
Divgi TorqTransfer Systems listed on 14 Mar 2023 at ₹620, 5.1% above the ₹590 issue price.
Divgi TorqTransfer Systems makes transfer cases, torque couplers and DCT solutions for vehicle makers, and is the largest supplier of transfer case systems to passenger vehicle makers in India. Its total income was Rs 241.87 crore in FY2022.
Stock price
Divgi TorqTransfer Systems is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 11 November.
- Open 01 Mar 2023
- Close 03 Mar 2023
- Allotment 09 Mar 2023
- Refund/credit 10 Mar 2023
- Listing 14 Mar 2023
Issue summary
The terms of the offer, as filed.
| IPO Dates | 1 to 3 Mar, 2023 |
|---|---|
| Price Band | ₹560 – ₹590 |
| Face Value | ₹5 |
| Lot Size | 25 Shares |
| Issue Size | ₹412.12 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 14,750 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 25 shares at the ₹590 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 25 | ₹14,750 |
| Retail (max) | 13 | 325 | ₹1,91,750 |
| S-HNI (min) | 14 | 350 | ₹2,06,500 |
| S-HNI (max) | 67 | 1,675 | ₹9,88,250 |
| B-HNI (min) | 68 | 1,700 | ₹10,03,000 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 5
- 01Profit after tax rose from Rs 28.04 crore in FY2020 to Rs 46.15 crore in FY2022.
- 02The source puts the PAT margin at 19.08% and the EBITDA margin at 28.07%.
- 03The company was almost debt free, with borrowing of Rs 0.50 crore on 30 September 2022.
- 04Rs 150.71 crore of the fresh issue was planned for new equipment and machinery.
- 05The promoters did not sell any shares in the offer, and held 60.48% after it.
Risks · 5
- 01The pre-issue P/E was 35.2 at the upper band of Rs 590, based on EPS of Rs 16.76.
- 02Total income was small, at Rs 241.87 crore in FY2022.
- 03Sales depend on a few vehicle makers and on demand for 4WD and AWD vehicles. Return on net worth was 13.57% as per the source.
- 04Rs 232.12 crore of the Rs 412.12 crore issue was offer for sale by investors and others.
- 05EV and DCT products are still new, and income from them may take time to grow from its 3 facilities.
Three years of numbers
All figures in ₹ crore, as reported in the Divgi TorqTransfer Systems offer document.
| Metric | 30 Sep 2022 | 31 Mar 2022 | 31 Mar 2021 | 31 Mar 2020 |
|---|---|---|---|---|
| Assets | 430.21 | 405.37 | 362.88 | 303.70 |
| Total Income | 137.55 | 241.87 | 195.03 | 170.74 |
| Profit After Tax | 25.66 | 46.15 | 38.04 | 28.04 |
| NET Worth | 356.20 | 340.02 | 295.88 | 209.53 |
| Reserves and Surplus | 342.44 | 326.25 | 288.99 | 203.51 |
| Total Borrowing | 0.50 | 0.12 | 0.26 | 50.41 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Divgi TorqTransfer Systems RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Divgi TorqTransfer Systems IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹16.76 | ₹16.78 |
| P/E Ratio (x) | 35.20 | 35.16 |
| Market Cap at Offer Price (₹ Cr) | ₹903.31 | ₹902.23 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹590 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹168.44 Cr of the issue is earmarked to named objects.
About the company
As per CRISIL, it is one of the leading suppliers of transfer case systems to OEMs in India and the largest supplier of transfer case systems to passenger vehicle makers in India. It can also develop transmission systems for EVs, and has in-house software that controls vehicle dynamics.
It has three manufacturing and assembly facilities in India and its registered office is at Bhosari, Pune.
The IPO was Rs 412.12 crore, with Rs 180.00 crore of fresh issue and Rs 232.12 crore of offer for sale by investors and other shareholders. Rs 150.71 crore was planned for equipment and machinery for its plants.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Divgi TorqTransfer Systems IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Equirus Capital Pvt.Ltd.
34 issues handledBest listing: G R Infraprojects (+105.0%). Weakest: Metro Brands (-12.6%).
Inga Ventures Pvt. Ltd
2 issues handled2 of their issues have listed so far, and 2 opened above the issue price (average +23.2%). That is too small a sample to read as a hit rate.
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Divgi TorqTransfer Systems?
The current Grey Market Premium is ₹20, or 3% over the issue price.
What is the Divgi TorqTransfer Systems IPO price band?
₹560 to ₹590, on a face value of ₹5.
When is the allotment?
The basis of allotment is 9 March 2023, with listing on 14 March 2023.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
