The initial public offering of Divgi TorqTransfer Systems, the first to raise funds in 2023 through the main board, was subscribed 12 per cent on Day 1. The issue comes out with a price band of ₹560-590 a share and will close for subscription on Friday. Investors can bid for a minimum of 25 equity shares and in multiples thereof.

While 75 per cent of the issue has been reserved for qualified institutional investors, non-institutional investors can bid for 15 per cent and the remaining 10 per cent is set aside for retail investors.

Retail portion

Retail portion received bids for 0.60 times or 60 per cent, the quota allocated for HNIs and QIBs received just 6 per cent and 4 per cent, respectively at the end of Day 1.

The IPO consists of a fresh issue of equity shares worth ₹180 crore and an Offer For Sale (OFS) of 39.34 lakh shares (worth ₹232 crore) by investors and other selling shareholders. Among them are Oman India Joint Investment Fund II, NRJN Family Trust, Bharat Bhalchandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag will offload shares.

₹185 crore from anchor investors

As a part of the IPO process, the company on Tuesday raised ₹185 crore from anchor investors. It has decided to allot 31.43 lakh equity shares to 12 funds at ₹590 apiece, who included ICICI Prudential Mutual Fund (MF), Quant MF, Edelweiss MF, Motilal Oswal MF, Nippon India MF, Aditya Birla Sun Life Insurance Company, Aurigin Master Fund and Bengal Finance and Investment Pvt Ltd.

Proceeds from the fresh issue will be used to fund capital expenditure requirements for the purchase of equipments at its manufacturing facilities and general corporate purposes.

Divgi TorqTransfer develops and provides system-level transfer case, torque coupler and DCT solutions, to automotive original equipment manufacturers through its three manufacturing and assembling facilities in India

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