Divgi Torqtransfer Systems Limited (Divgi) has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
Divgi is amongst the very few automotive component entities in India who have the capability to develop and provide system level transfer case, torque coupler and dual clutch automatic transmissions (“DCT”) solutions. The Company is also the only player manufacturing and exporting transfer cases to global OEMs from India, and the only manufacturer of torque couplers in India according to CRISIL Report. It also have the capability to develop and provide transmission systems for electric vehicles (“EVs”).
The company plans to raise funds through Initial Public Offering (IPO) comprising offer of equity shares having face value of Rs. 5 each, aggregating up to Rs. 2,000 million (“Fresh Issue”) and Offer for Sale of up to 31,46,802 equity shares by the Selling Shareholders. (“Offer for Sale”)
According to CRISIL Report, the company is one of the leading players supplying transfer case systems to automotive OEMs in India and the largest supplier of transfer case systems to passenger vehicle manufacturers in India.
The company proposes to utilize the net proceeds from the fresh issue towards funding capital expenditure requirements for the purchase of equipment’s /machineries of its manufacturing facilities estimated to Rs. 1,533.38 million and towards general corporate purposes.
The offer for sale comprises of up to 17,50,000 equity shares by Oman India Joint Investment Fund II, up to 11,54,000 equity shares by Nrjn Family Trust (Represented by its corporate trustee, entrust family office legal and trusteeship services private limited), up to 49,430 equity shares by Bharat Bhachandra Divgi, Up to 40,460 equity shares by Sanjay Bhalchandra Divgi, up to 104,020 equity shares by Ashish Anant Divgi, up to 33,660 equity shares by Arun Ramdas Idgunji and up to 15,232 equity shares by Kishore Mangesh Kalbag,.
Inga Ventures Private Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the issue.
The equity shares are proposed to be listed on BSE and NSE.