Pune-based automobile component manufacturer Divgi TorqTransfer systems is entering the capital markets on 1 March with an initial public offering (IPO) of shares priced at Rs 560 to Rs 590 per share, aggregating to Rs 180 crore. The IPO also has an offer for sale component of 39.34 lakh shares, aggregating to Rs 232 crore. The offer for sale comes from early investors Oman India, which is selling 40% of its holding and Nandan Nilekani’s NRJN Family Trust, which is selling 55% of its shares.
With three plants in Maharashtra and one plant in Karnataka, Divgi makes gearboxes for Toyota Kirloskar, Mahindra & Mahindra and Tata Motors. The company plans to use Rs 150 crore from the proceeds of the IPO to fund capital expenditure.
Addressing a news conference in Ahmedabad on Tuesday, managing director Jitendra Divgi said the company is setting up a new plant near Pune for making Electric Vehicle (EV) gear boxes and transmission systems in Pune. “We are also planning to make Dual Clutch Automatic Transmission systems for the first time in India. This product has always been imported,” he said.
The 58 year old company, started by Mr Jitendra Digvi’s father, made manual transmission systems in its early years. A graduate of BITS Pilani (batch of 1985) and MIT, Jitendra Digvi is now setting the company on a high-tech growth path. “We have partnerships with international giants like BorgWarner and Hofer for technology. We also have a focus on in-house Research & Development, where we have developed proprietary technology electronic and mechanical systems,” he said.
The company registered revenues of Rs 133.7 crore, EBITDA of Rs 37 crore and profit after tax of Rs 26.6 crore for the first six month of the financial year 2022-23.The IPO will be available for subscription till March 3. The allotment of shares to anchor investors will be on February 28. The shares are expected to get listed on the exchanges on March 14. About 75% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors and 10% for retail investors.