Divgi TorqTransfer Systems IPO subscribed 5.44 times on Day 3; QIBs steal the show

The initial public offer (IPO) of Divgi TorqTransfer Systems Ltd received fantastic response from qualified institutional buyers (QIBs), retail investors, and non-institutional investors. The issue was subscribed by 5.44 times on Day 3.

The company received bids for 2,08,87,225 shares against 38,41,800 shares on offer, according to the data from the BSE.

The retail investors' portion was subscribed 4.31 times. The company received bids for 30,08,275 shares against 6,98,509 on offer for this segment.

The non-institutional investors' portion was subscribed 1.40 times. The company received bids for 14,62,900 shares against 10,47,763 on offer for this segment.

The QIBs' portion was subscribed 7.83 times. The company received bids for 1,64,16,050 shares against 20,95,528 shares on offer for this segment. The employees' portion did not receive any subscriptions.

The IPO of Divgi TorqTransfer Systems was subscribed 12% on Day 1, and 38% on Day 2. The public issue that opened for subscription on Wednesday, March 1, closes today.

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The company has fixed the price band at ₹560 to 590 per equity share for the proposed initial public offer. Investors may submit bids for a minimum of 25 equity shares and in multiples thereof.

While 75% of the issue has been put aside for eligible qualified institutional investors, 15% is open to non-institutional bidders, and the remaining 10% is allocated for retail investors.

The IPO comprises of a fresh issue of equity shares valued at ₹180 crore and an offer for sale (OFS) of 39.34 lakh shares by investors and other selling shareholders valued at ₹232 crore. Arun Ramdas Idgunji, Kishore Mangesh Kalbag, Bharat Bhalchandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, NRJN Family Trust, and Oman India Joint Investment Fund II are a few of those who will sell stock.

According to the Red Herring Prospectus, the company plans to utilise the net proceeds from the fresh issue to fund capital expenditure requirements and to manage general corporate purposes.

The book running lead managers (BRLM) of the issue are Inga Ventures Private Ltd and Equirus Capital Private Ltd. The registrar to the offer is Link Intime India Private Ltd. The equity shares are proposed to be listed on NSE and BSE.

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