Divgi TorqTransfer Systems Limited – Globe Capital Market LTD.
Divgi TorqTransfer Systems Limited
Closed
Price Band
Rs.560-590 per share
IPO Issue Period
Mar 1, 2023 to Mar 3, 2023
Issue Size
412 Cr.
Face value
Rs.5
Fresh issue
180.00 Cr
Offer for sale
3,934,243 Equity Shares
Minimum Shares for Retail
25 Share
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
Mar14, 2023
QIB
Not More than 75% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 10% of the offer

Incorporated in 1964, Divgi TorqTransfer Systems Limited is engaged in the business as an automotive component entity. They are among the very few automotive component entities in India with the capability to develop and provide system-level transfer cases, torque couplers, and dual-clutch automatic transmission solutions.

Divgi TorqTransfer is one of the leading players supplying transfer case systems to automotive OEMs in India and the largest supplier of transfer case systems to passenger vehicle manufacturers in India. Not only thi are also the only player manufacturing and exporting transfer cases to global OEMs from India, and the only manufacturer of torque couplers in India.

Divgi TorqTransfer Systems Limited manufactures and supplies its products under a wide range which includes-

  1. Torque transfer systems (which includes four-wheel-drive (“4WD”) and all-wheel-drive (“AWD”) products);
  2. Synchronizer systems for manual transmissions and DCT;
  3. Components for the above-mentioned product categories for torque transfer systems and synchronizer systems in manual transmission, DCT, and EVs.

Alongside, they have also developed

  1. Transmission systems for EVs;
  2. DCT systems;
  3. Rear wheel drive manual transmissions.

Divgi TorqTransfer Systems Limited also takes pride in being among the few companies that serve as both, systems-level solution providers and component kit suppliers to global OEMs and Tier I transmission systems suppliers.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 241.87 195.03 170.74
Profit After Tax 46.15 38.04 28.04
EPS 16.76 13.82 11.64
OPM (%) 26% 27% 22%
PATM(%) 19% 20% 16%

 

  • One of the very few suppliers in India having the capability to develop and provide system level transfer case, torque coupler, DCT solutions and transmission systems for EVs across a wide array of automotive vehicles and geographies, with leadership across select product categories.
  • Strategically located manufacturing facilities capable of producing high precision components meeting system-level design intent.
  • Long-term relationships with marquee domestic and global customers.
  • Experienced board of directors and senior management team supported by skilled and qualified workforce.
  • Consistent financial performance with focus on innovation and R&D capabilities.

The Company proposes to utilize the Net Proceeds from the Fresh Issue towards the following objects:

  • Funding capital expenditure requirements for the purchase of equipment/machineries of our manufacturing facilities;
  • General corporate purposes.

The Company has created a niche place in the segment with a variety of products for OEMs under one roof. Based on its current financial data, though the issue appears fully priced. Hence, investors may subscribe it with a long-term perspective.

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