Shares of Divgi TorqTransfer Systems, the first to raise funds in 2023 through the main board, will be listed on the stock exchanges.

The issue was subscribed to 5.44 times. The issue comes out with a price band of ₹560-590 a share. The retail portion received bids 4.31 times, the quota allocated for HNIs saw bids 1.41 times, and QIBs 7.83 times.

Flat listing?

Pravesh Gour, Senior Technical Analyst, Swastika Investment Ltd, said, “As per the latest data, the stock was trading at a premium of ₹18 in the grey market, but it is declining, and the current market condition is also not favourable, so we can anticipate its listing at around ₹600.”

The IPO consisted of a fresh issue of equity shares worth ₹180 crore and an offer for sale (OFS) of 39.34 lakh shares (worth ₹232 crore) by investors and other selling shareholders.

Among them are Oman India Joint Investment Fund II, NRJN Family Trust, Bharat Bhalchandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag will offload shares.

₹185 crore from anchor investors

As a part of the IPO process, the company had raised ₹185 crore from anchor investors.

It allotted 1.43 lakh equity shares to 12 funds at ₹590 apiece, who included ICICI Prudential Mutual Fund (MF), Quant MF, Edelweiss MF, Motilal Oswal MF, Nippon India MF, Aditya Birla Sun Life Insurance Company, Aurigin Master Fund, and Bengal Finance and Investment Pvt Ltd.

Proceeds from the fresh issue will be used for capital expenditure requirements for the purchase of equipments for its manufacturing facilities and general corporate purposes.

Divgi TorqTransfer develops and provides system-level transfer case, torque coupler and DCT solutions, to automotive original equipment manufacturers through its three manufacturing and assembling facilities in India