Digvi Torqtransfer System files IPO papers with SEBI

23 Sep 2022 , 08:19 AM

To generate money through an initial public offering (IPO), the automotive component business Divgi Torqtransfer Systems Ltd. has submitted preliminary paperwork to the capital markets regulator SEBI.

According to the draft red herring prospectus (DRHP), the IPO will include a fresh issue of equity shares worth up to Rs200 crore and an offer for sale (OFS) of up to 31,46,802 equity shares by investors and other selling shareholders.

Shares will be sold as part of the OFS by the Nrjn Family Trust, Oman India Joint Investment Fund II, Bharat Bhachandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji, and Kishore Mangesh Kalbag.

The new issue’s proceeds will go toward meeting the company’s capital expenditure needs for the acquisition of equipment for its manufacturing facilities and other general business objectives.

Divgi is a manufacturer of automotive components with the ability to create and offer Dual Clutch Automatic Transmission (DCT), torque coupler, and transfer case solutions at the system level. It has three locations for manufacturing and assembling spread across India.

Customers of the business include Mahindra & Mahindra, Tata Motors, and Toyota Kirloskar Auto Parts.

The issue’s principal book managers are Inga Ventures and Equirus Capital. It is proposed that the equity shares listed on both the BSE and NSE.

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