- Sets IPO price band at Rs 560-590 per share which will open on Wednesday and conclude on Friday
- Five mutual funds picked 24.41 lakh shares worth Rs 144 crore through eight schemes under the anchor portion.
- The share allotment will be finalised by March 9 and shares will be transferred to the demat accounts of eligible investors by March 11. The company will make its market debut on March 14
NE BUSINESS BUREAU
AHMEDABAD, FEB 28
Pune-based automotive component maker Divgi TorqTransfer Systems will become the first company to launch its initial public offering (IPO) in 2023.
A day before launching its maiden share sale, the company has allotted 31.43 lakh shares to 12 anchor investors on Tuesday . The company allotted the shares at Rs 590 apiece—the higher end of the initial public offering’s price band—to raise Rs 185.45 crore from the anchor portion.
The anchor portion saw participation from ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Quant Mutual Fund, Edelweiss Mutual Fund and Motilal Oswal Mutual Fund. Aditya Birla Sun Life AMC Ltd., Matthews Asia Funds, Aurigin Master Fund Ltd. and Bengal Finance and Investment Pvt. also participated in the anchor round. Through eight schemes, the five mutual funds received 24.41 lakh shares u
The company has priced its initial public offering (IPO) between Rs 560 to Rs 590 per share. The IPO will open on Wednesday and conclude on Friday.
The IPO comprises a fresh issue of Rs 180 crore and an offer for the sale of up to Rs 232 crore by Oman India Joint Investment Fund and Nandan Nilekani (Family Trust).
At the upper end of the price band, the issue could raise up to Rs 412 crore.
The company plans to utilise the net proceeds of the fresh issue for funding capital expenditure requirements, and for the purchase of equipment for its manufacturing facilities.
Divgi TorqTransfer makes transfer case systems, torque coupler and dual-clutch transmission solutions. The firm also produces torque transfer systems, including both four-wheel drive and all-wheel drive, synchroniser systems for manual transmissions and dual-clutch transmission, and can also develop transmission systems for electric vehicles, said Jitendra Divgi, MD.
The company has three manufacturing and assembling facilities at Sirsi in Karnataka, Shivare and Bhosari near Pune in Maharashtra, and one under-construction manufacturing facility located at Shirwal, Maharashtra.
The company designs, develops, manufactures and supplies turnkey solutions and components to automotive original equipment manufacturers (OEMs) across India, USA, China, Korea and Russia, amongst others.
Its clientele includes Mahindra & Mahindra Ltd. and Tata Motors Ltd. as well as global supplier like BorgWarner Inc.
The share allotment will be finalised by March 9 and shares will be transferred to the demat accounts of eligible investors by March 11. The company will make its market debut on March 14.
The Equity Shares are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited. For the purposes of the Offer, the BSE is the Designated Stock Exchange.
Inga Ventures Private Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the Issue.
