Divgi Torqtransfer Shares Lists at 5% Premium on Exchanges; First Listing of 2023

Divgi TorqTransfer Systems shares made a tepid debut, listing at a 5% premium on the NSE.

Divgi TorqTransfer Systems (DTS) made a low-key debut on the exchange on Tuesday. The stock was listed on the NSE at a 5% premium of Rs 620. This exceeded its issue price of Rs 590 per share. On the BSE, however, shares of the auto parts and equipment maker opened at Rs 600, up 2% from the issue price.

After listing, the stock fell to Rs 561.15, down 5% from its NSE issue price. NSE and BSE are quoting Rs 570 at 10:15 am. It touched a high of Rs 620 in intraday trade on the NSE. A total of about 2 million shares changed hands on the counters of the NSE and BSE.

Divgi TorqTransfer Systems’ IPO was 5.44 times subscribed during the bidding period from March 1 to March 3. The company and its shareholders have raised Rs 412 crore in the IPO.

The company said the funds would be used to acquire equipment and machinery for the company’s manufacturing facilities.

The company operates three manufacturing and assembly plants in Karnataka and Maharashtra. The new Shirwal, Maharashtra plant is expected to be fully operational by FY24.

For FY22, the company reported revenue of Rs 233.78 crore compared to Rs 186.58 crore a year ago. Full-year net profit was Rs 46.15 crore compared to Rs 38.04 crore last year.

DTS is a major automotive OEM in India with the capability to develop and supply system-level transfer cases, torque couplers and DCT solutions. DTS is India’s largest supplier of transfer case systems to photovoltaic OEMs. It has three manufacturing and assembly plants in India. One is under construction for EV transmissions and dual-clutch transmissions (DCTs) and is expected to be fully completed by FY24.

The company has strong and well-established relationships with several large domestic and global OEMs in the automotive industry, such as Tata Motors and M&M, and global suppliers, such as BorgWarner. With their positioning as a systems and solutions provider and broad product portfolio, they can retain existing customers and attract new ones.

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