Divgi TorqTransfer Systems IPO – Review
Divgi TorqTransfer Systems Limited – a Tier 1 product leader in automotive drivetrain components and solutions – is planning to raise INR 412 Crore via IPO [Fresh Issue 180 Cr + 232 Cr OFS]
divgi torqtransfer systems ipo price is fixed at INR 560 to INR 590
Divgi TorqTransfer Systems – History
Divgi Metalwares Private Limited (now Divgi TorqTransfer Systems) was started in the year 1964 as a small-scale manufacturing enterprise (SME) specializing in the manufacturing of gears and screwed machined parts.
With innovation and creativity, the company has evolved to become one of country’s leading Tier 1 companies in the design, development, and manufacturing of advanced drivetrain components and systems.
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Divgi TorqTransfer Systems – Business
- The Company is amongst the very few automotive component entities in India who have the capability to develop and provide (1) system level transfer case, (2) torque coupler, and (3) dual clutch automatic transmissions (DCT) solutions (source: CRISIL Report).
- It is one of the leading players supplying transfer case systems to automotive original equipment manufacturers in India and the largest supplier of transfer case systems to PV manufacturers in India (source: CRISIL Report).
- It is the sole player manufacturing and exporting transfer cases to the overseas OEMs from India, and the sole manufacturer of torque couplers in India (source: CRISIL Report).
The Company manufacture and supply a variety of products under the broad categories of –
(i) Torque Transfer Systems (it includes 4 wheel drive – 4WD and all wheel drive – AWD products);
(ii) synchronizer systems for manual transmissions and DCT; and
(iii) components for the above-listed product categories for torque transfer systems and synchronizer systems in manual transmission, EVs, and DCT.
The Company have also developed –
(i) transmission systems for EVs;
(ii) DCT systems; and
(iii) rear wheel drive manual transmissions
Manufacturing Facilities
The company has 3 manufacturing facilities located at –
- Sirsi in Karnataka,
- Shivare in Pune, Maharashtra
- Bhosari near Pune in Maharashtra
Client List
Divgi TorqTransfer Systems has, over the years built an enviable client base which includes Mahindra & Mahindra, Tata Motors, and Toyota.
Global Footprint
The company has stamped its global footprint being a trusted supplier to clients in the USA and UK in the west to China, Korea, Thailand, and Japan in the east.
Strategies Ahead
- Gaining market opportunities in the growing EV space,
- Capturing market opportunities in the fast-growing demand for automatic transmissions in the passenger UVs segment,
- Improve market and wallet share by increasing customer and geographic diversification,
- Cost optimization through product engineering and localisation,
- Focus on Research & Development to manufacture diverse products and expand into products to serve new and emerging trends
Company Promoters
- Jitendra Bhaskar Divgi,
- Hirendra Bhaskar Divgi, and
- Divgi Holdings Private Limited
Anchor Investor
Infosys founder Nandan Nilekani and his trust, NRJN, owns 23.94 lakh shares or 8.7% equity in Divgi Torqtransfer. NRJN Family Trust, will offload 14.4 lakh shares of the company.
IPO Details
Dates = 1 March 2023 to 3 March 2023
Face Value (FV) = INR 5
Minimum Investment Amount = INR 14750
Minimum Bid = 25 Shares
Listing On = BSE, NSE
Book Running Lead Managers
Inga Ventures Private Limited, Equirus Capital Private Limited,
Financials
Conclusion
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