Auto parts maker company Divgi Torqtransfer Systems Ltd (first IPO of 2023) has set a price range of Rs 560-590 per share for its share issue after almost two months.

The subscription will start on March 1 and end on March 3. Anchor bidding will take place on February 28.

At the upper end of the issue price, the company will raise about Rs 412.12 crore in the offering, valued at Rs 1,624.39 crore. The company stated that the allotment base date is March 9, the credit of shares will be done on March 13, and the stock will be listed on March 14.

Radiant Cash Management Services Ltd’s last IPO was in December 2022, and there have been no public offerings since then amid wild market volatility. The issue started on December 23 and ended on December 27 at a price range of Rs 94-99. It raised about Rs 388 crore in its initial public offering.

Divgi Torqtransfer Systems has cut the size of its new issue to Rs 180 crore from Rs 200 crore announced earlier. The scale of sales has increased. Earlier, promoters and existing shareholders intended to sell about 3.15 million shares, while now they plan to sell more than 3.93 million shares through OFS.

The OFS includes up to 2.25 million shares in Oman India Joint Investment Fund II, up to 1.44 million shares in NRJN Family Trust, 49,430 shares in Bharat Bhalchandra Divgi, 40,460 shares in Sanjay Bhalchandra Divgi. Ashish Anant Divgi will sell about 104,000 shares.

Oman India Joint Investment Fund II holds a 21.71% stake in the company, while NRJN Family Trust holds an 8.71% stake.

Funds from the offering will be used to acquire equipment and machinery for the company’s production facilities. The company operates three manufacturing and assembly plants in Karnataka and Maharashtra. In addition, construction of the new facility is underway and 80% complete. The new Shirwal, Maharashtra plant will be fully operational by FY2024.

The company has a unique capability in India, being one of the few suppliers dedicated to developing and delivering system-level solutions for transfer cases, torque couplers and DCTs. Its reputation as a major player in the transfer case systems market is reflected in its solutions to various OEMs in India and its position as a critical supplier to the country’s passenger vehicle manufacturers.

From now on, the company intends to focus on meeting the needs of EV OEMs as part of its strategy to increase domestic and international market share.

Inga Ventures Pvt Ltd and Equirus Capital Pvt Ltd are the lead managers for the offering.

For FY22, the company reported revenue of Rs 233.78 crore against Rs 186.58 crore a year ago. Full-year net profit was Rs 46.15 crore compared to Rs 38.04 crore last year.