Divgi TorqTransfer Systems Limited is engaged in the business as an automotive component entity. They are among the very few automotive component entities in India with the capability to develop and provide system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions.
The company is one of the leading players supplying transfer case systems to automotive OEMs in India and the largest supplier of transfer case systems to passenger vehicle manufacturers in India. Divgi TorqTransfer is also the only player manufacturing and exporting transfer cases to global OEMs from India, and the only manufacturer of torque couplers in India.
Divgi TorqTransfer Systems manufacture and supply a variety of products under the broad categories:
- Torque transfer systems (which includes fourwheel-drive (“4WD”) and all-wheel-drive (“AWD”) products);
- Synchronizer systems for manual transmissions and DCT; and
- Components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs.
Divgi TorqTransfer Systems has also developed:
- Transmission systems for EVs;
- DCT systems;
- Rear wheel drive manual transmissions.
Divgi TorqTransfer Systems is one of the few companies that serve both as systems level solution provider as well as component kit supplier to global OEMs and Tier I transmission systems suppliers.
The Company has three manufacturing and assembling facilities across India located at Sirsi in Karnataka, and Shivare and Bhosari near
Pune in Maharashtra. Divgi TorqTransfer Systems has purchased 10 acres of land at Shirwal near Pune in Maharashtra and commenced construction which will help the company in expanding the manufacturing capacity including for manufacture of DCT and EV transmissions.
Divgi TorqTransfer Systems IPO – Details
| IPO Opening Date | 01 March 2023 |
| IPO Closing Date | 03 March 2023 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 69,85,090 Shares Worth ₹412.12 Crore Fresh Issue: 30,50,847 Shares Worth ₹180 Crore Offer For Sale: 39,34,243 Shares Worth ₹232.12 Crore |
| Face Value | ₹5 per equity share |
| IPO Price | ₹560 – ₹590 |
| Market Lot | 25 Shares |
| Min Order | 25 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Link Intime India Private Limited |
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Divgi TorqTransfer Systems IPO – Date Schedule
| IPO Open Date | 01 March 2023 |
| IPO Close Date | 03 March 2023 |
| Basis of Allotment Date | 09 March 2023 |
| Initiation of Refunds | 10 March 2023 |
| Credit of Shares to Demat Account | 13 March 2023 |
| IPO Listing Date | 14 March 2023 |
Divgi TorqTransfer Systems IPO – Lots Size & Price
| 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 |
| B-HNI (Min) | 68 | 1700 | 10,03,000 |
Competitive Strengths
- One of the very few suppliers in India having the capability to develop and provide system level transfer case, torque coupler, DCT solutions and transmission systems for EVs across a wide array of automotive vehicles and geographies, with leadership across select product categories;
- Strategically located manufacturing facilities capable of producing high precision components meeting system-level design intent;
- Long-term relationships with marquee domestic and global customers;
- Experienced board of directors and senior management team supported by skilled and qualified workforce;
- Consistent financial performance with focus on innovation and R&D capabilities.
Company Promoters
- Jitendra Bhaskar Divgi
- Hirendra Bhaskar Divgi
- Divgi Holdings Private Limited
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax |
|---|---|---|---|
| 31 March 2020 | 170.74 | 132.97 | 28.03 |
| 31 March 2021 | 195.02 | 142.46 | 38.02 |
| 31 March 2022 | 241.87 | 179.72 | 46.15 |
| 30 September 2022 | 137.54 | 103.04 | 25.66 |
Object Of The Issue
- Funding capital expenditure requirements for the purchase of equipment/machineries of our manufacturing facilities;
- General corporate purposes.
Divgi TorqTransfer Systems IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Sona BLW Precision Forgings Limited | 73.52 |
| 2 | 10 | Bosch Limited | 41.44 |
| 3 | 5 | ZF Commercial Vehicle Control Systems India Limited | 124.83 |
| 4 | 1 | Sundram Fasteners Limited | 45.10 |
| 5 | 10 | Endurance Technologies Limited | 44.61 |
Divgi TorqTransfer Systems IPO Strengths
- One of the very few suppliers in India having the capability to develop and provide system level transfer case, torque coupler, DCT solutions and transmission systems for EVs across a wide array of automotive vehicles and geographies, with leadership across select product categories.
- Strategically located manufacturing facilities capable of producing high precision components meeting system-level design intent.
- Long-term relationships with marquee domestic and global customers.
- Experienced board of directors and senior management team supported by skilled and qualified workforce.
- Consistent financial performance with focus on innovation and R&D capabilities.
Divgi TorqTransfer Systems IPO Risks
- Their top five customers account for a major portion of their revenue, therefore losing these clients or seeing a materially reduced level of business from them would be disastrous for their operations.
- Volatility in raw material & component prices or availability could have a negative impact on their business.
- Their plans to seize market share in the expanding EV industry as well as other new initiatives may not be implemented with the desired result.
- Their business is susceptible to expenses, risks, & uncertainties, including those related to tariffs, trade relations, & global political conditions, as well as rules & regulations in the domestic and international jurisdictions in which they operate. Their business and operations may suffer if applicable laws, health, & safety requirements are broken.
- Delays or defaults in customer payments and receivables may adversely impact to profits and affect to cash flows.
- We are exposed to foreign currency exchange rate fluctuations, which may adversely affect the results of operations and cause the quarterly results to fluctuate significantly.
Divgi TorqTransfer Systems IPO Promoter Holding
| Pre Issue Share Holding | 67.18% |
| Post Issue Share Holding | 60.48% |
Divgi TorqTransfer Systems IPO Prospectus
- Divgi TorqTransfer Systems IPO DRHP
- Divgi TorqTransfer Systems IPO RHP
- Anchor Investors in Divgi TorqTransfer Systems IPO
Company Contact Information
| Divgi TorqTransfer Systems Limited Plot No. 75, General Block, MIDC Bhosari, Pune 411026 Phone: +91 020 – 27302000 Email: sckadrolli@divgi-tts.com Website: http://www.divgi-tts.com/ |
Divgi TorqTransfer Systems IPO Registrar
| Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: Divgi.ipo@linkintime.co.in Website: https://linkintime.co.in/ |
Divgi TorqTransfer Systems IPO Lead Manager(s)
| 1. Inga Ventures Pvt Ltd 2. Equirus Capital Private Limited |
Divgi TorqTransfer Systems IPO FAQs
| What is Divgi TorqTransfer Systems IPO? Divgi TorqTransfer Systems IPO is a main-board IPO. The issue is priced at ₹560 to ₹590 per equity share. The IPO is to be listed on BSE & NSE. |
| When Divgi TorqTransfer Systems IPO will open? The IPO is to open on 01 March 2023 for QIB, NII, and Retail Investors. |
| What is Divgi TorqTransfer Systems IPO Investors Portion? The investors’ portion for QIB – 75%, NII – 15%, and Retail – 10%. |
| How to Apply the Divgi TorqTransfer Systems IPO? You can apply Divgi TorqTransfer Systems IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Divgi TorqTransfer Systems IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Divgi TorqTransfer Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Divgi TorqTransfer Systems IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Divgi TorqTransfer Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Divgi TorqTransfer Systems IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Divgi TorqTransfer Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Divgi TorqTransfer Systems IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Divgi TorqTransfer Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Divgi TorqTransfer Systems IPO Size? Divgi TorqTransfer Systems IPO size is ₹412.12 Cr. |
| What is Divgi TorqTransfer Systems IPO Price Band? Divgi TorqTransfer Systems IPO Price Band is ₹560 to ₹590. |
| What is Divgi TorqTransfer Systems IPO Minimum and Maximum Lot Size? The minimum bid is 25 Shares with ₹14,750 amount while the maximum bid is 325 shares with ₹1,91,750. |
| What is the Divgi TorqTransfer Systems IPO Allotment Date? Divgi TorqTransfer Systems IPO allotment date is 09 March 2023. |
| What is the Divgi TorqTransfer Systems IPO Listing Date? Divgi TorqTransfer Systems IPO listing date is 14 March 2023. The IPO is to list on BSE and NSE. |
