Divgi TorqTransfer Systems IPO subscribed 38% on day 2

The initial public offering of automotive component manufacturer Divgi TorqTransfer Systems was subscribed 38 per cent on the second day of offer on Thursday.

The share sale received bids for 14,49,000 shares as against 38,41,800 shares on offer, according to NSE data.

The portion for Retail Individual Investors (RIIs) received 1.56 times subscription, while non institutional investors category got subscribed 22 per cent and Qualified Institutional Buyers (QIBs) received 6 per cent subscription.

The Initial Public Offering (IPO) has a fresh issue aggregating up to Rs 180 crore and offer of sale of up to 39,34,243 equity shares. The price band is Rs 560-590 per share.

Divgi TorqTransfer Systems on Tuesday said it has raised more than Rs 185 crore from anchor investors. At the upper-end of the price, the IPO is expected to fetch a little more than Rs 412 crore.

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.

Inga Ventures and Equirus Capital are the managers to the offer. Shares of the company will be listed on March 14 on the BSE and NSE.

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