01 Mar '23 - 03 Mar '23
₹14,750 / 1 Lots ( 25 Shares )
₹560 - ₹590
₹191,750 / 13 Lots ( 325 Shares )
To be announced
Investor category and sub categoryQualified Institutional Buyers | Non-Institutional Investors | Retail Individual Investors |
Important dates with respect to IPO allotment and listing
IPO Open Date
Mar 1, 2023
IPO Close Date
Mar 3, 2023
IPO Allotment Date
Mar 9, 2023
Initiation Of Refunds
Mar 10, 2023
Credit Of Shares To Demat Account
Mar 13, 2023
IPO Listing Date
Mar 14, 2023
IPO Subscription Details
Day 1Mar 1, 2023
Day 2Mar 2, 2023
Day 3Mar 3, 2023
IPO Subscription Status Live
|Investor Category||Subscription (Times)|
|Qualified Institutions Buyers||7.83|
About Divgi TorqTransfer Systems Ltd.
The company is among the few Indian companies and a leading player in manufacturing and supplying transfer case systems and dual-clutch automatic transmissions (DCT) to automotive OEMs in India. They are the only Indian player supplying transfer cases to global OEM companies.
They manufacture and supply a variety of products under the broad categories of
- Torque transfer system for four-wheel and all-wheel drive
- Synchroniser system for manual transmission and DCT
- Transmission system for EVs
- Rear wheel drive manual system
The company's profit in the quarter that ended in March FY22 was ₹46.15 crore, an increase of 21.3% from the previous year. In the same period, revenue from operations recorded a 25.3% increase to ₹234 core, with ₹213.4 crore income received from the top five customers.
On the operating front, EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 26.4% to ₹65.6 crore with a margin expansion of 25 bps at 28.06% from FY21. In the six-month period that ended on September 30, 2022, the company made a profit of ₹25.66 crore against a revenue of Rs 133.72 crore.
Fortunately, the company has also reduced its borrowings significantly to ₹0.26 crore in FY21 from ₹50.41 crore in FY20. At the end of September 30 2022, it had a borrowing of ₹0.5 crore.
Divgi TorqTransfer Systems Ltd. IPO Objective
- To fund capital expenditure requirements to buy equipment/machinery for their manufacturing facilities and meet general corporate purposes.
Why should you invest in the Divgi TorqTransfer Systems Ltd. IPO?
Here are your top reasons to invest in the IPO.
- It is one of the few Indian companies to have served both systems-level solution providers and component kit suppliers to global OEMs and Tier-I transmission systems suppliers.
- The management has thirty-plus years of experience in the automotive industry.
- They offer turnkey solutions and components to automotive OEMs across India, the USA, China, Korea, Russia, and others.
- They cater to a domestic and global clientele of marquee customers.
Divgi TorqTransfer Systems Ltd. Noteworthy Highlights
- Their top five customers contributed 91.28%, 92.86%, and 86.94% of total revenue in the last three fiscal years of 2022, 2021, and 2020 respectively.
- Between 2020 and 2022 fiscals, the company recorded a 28.30% CAGR in their profit after tax (PAT).
- The Indian EV market is expected to grow by 108-110% CAGR from 2021-2026 in volume and value.
Divgi TorqTransfer Systems Company Financials
|Parameters||Year ending on As on 31st March, 2022||Year ending on 31st March, 2021||Year ending on 31st March, 2020|
|Revenue from operation||2337.77||1865.75||1590.65|
|Profit After Tax||461.51||380.44||280.39|
Know before investing
Strategically located manufacturing facilities capable of manufacturing high-precision components meeting system-level design intent.
They offer turnkey solutions and components to automotive OEMs across India, the USA, China, Korea, Russia and others.
They cater to a domestic and global clientele of marquee customers.
Their business is concentrated on the top five customers. So a loss of any customer will impact their business adversely.
Price volatility of raw materials and components can adversely affect the company’s future revenue.
To stay competent they must quickly anticipate and adapt to the changing demands of their customers.
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|Company Name||P/E ratio||EPS (Basic)||NAV per equity|
|Divgi TorqTransfer Systems Ltd.||NA||16.76||123.50|
|Sona BLW Precisions Foreigners Ltd.||83.00||6.22||34.23|
|ZF Commercial Vehicle Control Systems India Ltd.||126.83||74.90||1,114.57|
|Sundram Fasteners Ltd.||41.51||21.74||125.46|
|Endurance Technologies Ltd||44.89||32.75||278.66|
Divgi TorqTransfer Systems IPO FAQs
Divgi TorqTransfer Systems Ltd. SME IPO opens on march 1, 2023. The offer comprises fresh equity shares worth ₹180.00 crore and an offer for sale of 3,934,243 scripts at a face value of ₹5.
The IPO shares of Divgi TorqTransfer Systems Ltd. will be allotted on March 09, 2023.
One lot of Divgi TorqTransfer Systems Ltd. IPO has 25 shares.
The IPO will open on March 01, 2023.
Retail investors can apply for a minimum of one lot.
The shares will list on the BSE and NSE exchanges on March 14, 2023.
Angel One investor must log in to their accounts to check Divgi TorqTransfer Systems Ltd. IPO allotment status.
When checking the allotment status, keep your application, DP ID, and PAN number ready.
Listing gain is the difference between the IPO’s opening and offer prices.
The listing gain is a result of changing investors’ interests, global parameters, and short vs long-term outlooks.
The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date.
Login to your UPI handle and approve the payment mandate to complete the IPO application process.
You can submit only one application using one PAN card.
The minimum size of the application will be one lot of 25 shares.