Divgi TorqTransfer Systems IPO: Issue to open on March 1

24 Feb 2023 , 01:44 PM

The initial public offer of (IPO) Automotive component company, Divgi TorqTransfer Systems Limited is opening for subscription on March 1 and will conclude on March 3. It is the first mainboard IPO of 2023.

As per RHP, the IPO comprises fresh issue of worth Rs 180 crore and an offer for sale of 3,934,243 equity shares. Divgi Torqtransfer has cut the fresh issue size to Rs 180 crore from Rs 200 crore announced earlier but increased the offer for sale (OFS) size.

According to the red-herring prospectus, Oman India Joint Investment Fund II plans to sell up to 2.25 million shares, NRJN Family Trust up to 1.44 million shares, Bharat Bhalchandra Divgi 49,430 and Sanjay Bhalchandra Divgi 40,460. Ashish Anant Divgi will sell around 1.04 lakh shares.

The company will use net proceeds from the public offer towards acquiring equipment and machinery for the company’s manufacturing facilities and for general corporate purposes.

Currently, it operates three manufacturing and assembly plants in Karnataka and Maharashtra. A new facility is coming up at Shirwal in Maharashtra and is expected to be fully operational by year 2024.

Inga Ventures Private Ltd and Equirus Capital Private Ltd are the book running lead managers to the issue.