Auto component manufacturer Divgi TorqTransfer Systems IPO to kick off on March 1

The initial public offering of Divgi TorqTransfer Systems, an automotive component manufacturer, will open for public subscription on March 1.

The three-day initial public offering (IPO) will conclude on March 3.

The bidding for anchor investors will open on February 28, according to the red herring prospectus (RHP).

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The company has cut the size of its fresh issue of equity shares to Rs 180 crore from Rs 200 crore planned earlier.

Apart from the fresh issue, the company has increased its offer for sale (OFS) component of up to 3.93 million equity shares instead of 3.15 million shares planned earlier by investors and other selling shareholders, the RHP said.

As part of the OFS, 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 will offload shares.

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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 is an automotive component entity which has the capability to develop and provide system level transfer case, torque coupler, and Dual Clutch Automatic Transmission (DCT) solutions. It has three manufacturing and assembling facilities located across India.

Mahindra & Mahindra, Tata Motors and Toyota Kirloskar Auto Parts are among the company's customers.

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Inga Ventures and Equirus Capital are the book running lead managers to the issue.

With PTI Inputs