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ClosedMainboardAuto Components · Transfer Case / Torque Transfer Systems
Divgi TorqTransfer Systems Limited
DIVGIITTS·₹560 – ₹590·Opens 2023-03-01
★★★★☆4/5
🔗 Official WebsitePrice Band: ₹560 – ₹590
Min. Investment: 14750
Issue Size: 412.12
About the Company
What does this company do?
Divgi TorqTransfer Systems Limited is one of India's leading manufacturers of transfer case systems, torque couplers, and dual-clutch transmission (DCT) systems for passenger vehicles and EVs. The company is the largest supplier of transfer case systems to passenger vehicle manufacturers in India and also supplies EV g…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
412.12
6985090
Fresh Issue
180.00
3050847
Proceeds go to company
OFS
232.12
3934243
Proceeds to selling shareholders
Reservation Structure
QIB (Qualified Institutional Buyers)
75%
Not less than 75% of the Offer allocated to QIBs including Anchor Investor Portion of 60% of QIB Portion
NII / HNI (Non-Institutional Investors)
15%
Not more than 15% of the Offer
RII (Retail Individual Investors)
10%
Not more than 10% of the Offer
Products & Brands
Key offerings and brand portfolio of the company.
Transfer Case Systems: System-level transfer case solutions supplied to passenger vehicle OEMs in India. Divgi TTS is the largest supplier of transfer case systems to passenger vehicle manufacturers in India.
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | H1 FY2023 (Apr-Sep 2022) | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|
| Revenue from Operations | 1337.16 | 2337.77 | 1865.75 | 1590.65 |
| Other Income | 38.31 | 80.97 | 84.50 | 116.75 |
| EBITDA | 409.18 | 737.10 | 603.49 | 486.10 |
| EBITDA Margin | 30.6% | 31.5% | 32.3% | 30.6% |
| Depreciation & Amortisation | 62.75 | 113.91 | 76.09 | 63.89 |
| EBIT | 346.43 | 623.19 | 527.40 | 422.21 |
| Finance Costs (Interest) | 1.41 | 1.66 | 1.84 | 44.59 |
| PBT (Profit Before Tax) | 345.02 | 621.53 | 525.56 | 377.62 |
| Tax | 88.38 | 160.02 | 145.12 | 97.23 |
| PAT (Net Profit) | 256.64 | 461.51 | 380.44 | 280.39 |
| PAT Margin | 19.2% | 19.7% | 20.4% | 17.6% |
| EPS — Basic (₹) | 9.32 | 16.76 | 13.82 | 11.64 |
| EPS — Diluted (₹) | 9.32 | 16.76 | 13.82 | 10.18 |
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS — Basic (₹)
16.76
FY2022
EPS — Diluted (₹)
16.76
FY2022
P/E Ratio
35.2
At upper band vs FY2022 EPS
RoNW (%)
13.57%
FY2022 PAT/Avg NetWorth
NAV per Share (₹)
123.48
Pre-issue; NetWorth 3400.15Mn / 27532000 shares
Debt/Equity
—
FY2022
EBITDA Margin (%)
31.5%
FY2022 EBITDA/Revenue from Ops
PAT Margin (%)
19.74%
FY2022
Revenue CAGR
21.2%
FY2020-FY2022 2-yr CAGR
Peer Comparison
Listed peers in the same industry — compare valuation and scale.
| Company | Exchange | Market Cap | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|---|---|
| — | — | — | — | — | — | — |
* Peer data extracted from DRHP. All figures in ₹ Crores unless stated. P/E based on latest available earnings.
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
Funding capital expenditure for purchase of equipment/machinery for manufacturing facilities
1
General corporate purposes
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Market leader in transfer case systems for passenger vehicle OEMs in India
Unique capability in system-level DCT, torque coupler, and EV transmission solutions
In-house software capability for vehicle dynamics
Strong financials with consistent profitability and high EBITDA margins
⚠️Weaknesses
High customer concentration risk
Heavy reliance on a few product segments
Significant monetary asset holdings (cash/FD) which may indicate limited deployment efficiency
🚀Opportunities
Growing adoption of 4WD/AWD vehicles in India
Rapid EV adoption driving demand for EV gearboxes and transmission systems
Hybrid vehicle growth benefiting DCT demand
Premiumization trend in passenger vehicles
🔥Threats
Technology disruption in powertrains could reduce demand for traditional transfer cases
OEM consolidation or in-sourcing of components
Competition from global Tier-1 suppliers entering India
Slowdown in automotive sector impacting volumes
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Leading and largest supplier of transfer case systems to passenger vehicle OEMs in India with significant market share
✓
One of the very few suppliers in India capable of developing and providing system-level transfer case, torque coupler, and DCT solutions
✓
In-house software development capability enabling system-level solutions with vehicle dynamics control software
✓
Capability to develop and supply transmission systems for electric vehicles (EVs), positioning the company to benefit from electrification trends
✓
Strong relationships with marquee OEM customers providing revenue visibility
✓
Manufacturing facilities strategically located across Karnataka and Maharashtra with capacity expansion underway
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
High customer concentration — revenue significantly dependent on top five customers
⚠
Capital expenditure orders not yet placed; risk of time and cost overruns
⚠
First-time public listing with no prior formal market for equity shares
⚠
Business highly sensitive to automotive industry cycles and OEM production volumes
⚠
Significant cash and bank balances held as monetary assets; may indicate underutilization
⚠
Dependence on a few product lines (transfer case, DCT, EV gearbox) which are subject to technology disruption
✓ Subscribe
Should You Apply?
Divgi TorqTransfer Systems Limited is India's largest supplier of transfer case systems to passenger vehicle OEMs and has unique capabilities in DCT and EV transmission systems. The company has demonstrated consistent revenue growth from ₹159.07 Cr in FY2020 to ₹233.78 Cr in FY2022 with healthy EBITDA margins of ~31% and PAT margins of ~20%. At the upper price band of ₹590, the stock is priced at ~35x FY2022 earnings, which is a premium valuation reflecting its niche positioning and EV/4WD growth tailwinds. We recommend Subscribe given the company's leadership position, technology moat, strong profitability, and significant opportunities from India's EV and AWD adoption trends, though investors should note customer concentration risks.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
IPO Timeline
Key milestones from opening to listing.
📅
IPO Opens
2023-03-01
🔒
IPO Closes
2023-03-03
🎯
Allotment
13 Mar 2023
🏛️
Listing
2023-03-14
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (2)
Inga Ventures
Equirus Capital
Registrar to the Issue
📋
Link Intime India Private Limited
Registrar to the Issue
Company Details
Registered information and contact details.
Company Name
Divgi TorqTransfer Systems Limited
CIN
U32201MH1964PLC013085
Registered Office
Plot No. 75, General Block, MIDC, Bhosari, Pune 411026
Contact Person
Satish Chandrashekhar Kadrolli
Phone
+91 020-63110114
Website
www.divgi-tts.com