BackNew listing: Divgi TorqTransfer Systems shares rise on premium market debut
Divgi TorqTransfer Systems' IPO was subscribed 5.44 times by the last day of offer
PremiumShares of Divgi TorqTransfer Systems made their positive market debut on Tuesday with the stock listing at ₹620 apiece on the NSE, a premium of more than 5% as compared to its IPO issue price of ₹590 per share. On the BSE, Divgi TorqTransfer shares started trading at ₹600 a piece.
Automotive component manufacturer Divgi TorqTransfer Systems' initial public offering (IPO) was subscribed 5.44 times on the last day of offer on Friday, March 3, 2023. The ₹412 crore-offer received bids for 2,08,87,225 shares against 38,41,800 shares on offer.
The quota meant for Qualified Institutional Buyers (QIBs) got subscribed 7.83 times, the category for Retail Individual Investors (RIIs) received 4.31 times subscription and the non-institutional investors quota was subscribed 1.40 times.
The initial share sale comprised a fresh issue aggregating up to ₹180 crore and offer of sale of up to 39,34,243 equity shares. As part of the OFS, 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 offloaded shares.
The price band was at ₹560-590 per share. It raised more than ₹185 crore from anchor investors ahead of its initial share sale. The company decided to allot 31.43 lakh equity shares to 12 funds at ₹590 apiece.
Proceeds from the fresh issue will be used for funding capital expenditure requirements for the purchase of equipment for its manufacturing facilities and general corporate purposes.
Divgi is an automotive component entity, developing and provide system-level transfer case, torque coupler, and Dual Clutch Automatic Transmission (DCT) solutions. It has three manufacturing and assembling facilities located across India.
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