The initial public offering of Divgi TorqTransfer Systems, the first to raise funds through the main board, will open today and end on March 3, 2023. The issue comes out with a price band of ₹560-590 a share. Investors can bid for a minimum of 25 equity shares and in multiples thereof.
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, who will offload shares, 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.
Infosys founder Nandan Nilekani had invested in the company through their NRJN Family Trust, which owns an 8.70 per cent shareholding of the company. The Nilekani family trust would be selling up to 14 lakh shares of Divgi TorqTransfer in this OFS.
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, which 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.
While 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors.
Proceeds from the fresh issue will be used towards funding capital expenditure requirements for the purchase of equipment for its manufacturing facilities and general corporate purposes.
Divgi TorqTransfer develops and provides system-level transfer cases, torque couplers, and DCT solutions, to automotive original equipment manufacturers through its three manufacturing and assembling facilities in India.