Mumbai: Divgi Torqtransfer Systems Limited (Divgi TTS) announced on February 27 here a fresh issue of Equity Shares aggregating upto Rs 180 crores and Offer for Sale of 3,934,243 Equity Shares. The issue opens on March 1, 2023 and closes on March 3, 2023.
The Issue size is between Rs 400 – Rs 412 crores and the number of shares between 7,148,528 — 6,985,090 with the price band at Rs 560-590.
Jitendra Bhaskar Divgi, Managing Director, Divgi Torqtransfer Systems Limited (Divgi TTS), said the company is among the few automotive component entities in India with capability to develop and provide system level transfer case, torque coupler and dual clutch automatic transmissions (DCT) solutions.
Noting that the company has the capability to develop and provide transmission systems for electric vehicles (EVs), he said it is in the process of designing and developing prototypes of transmission systems for EVs pursuant to receipt of a business award for this purpose.
“We are the +bellweather+, +harbinger+ for new gearbox products in the complete landscape of the automobile industry and are contributing to India’s success story as being the +bright+ spot — amidst global “recession” talk” – through our association with companies locally and worldwide,” he said.
Pointing out that this IPO would provide “elbow room” and flexibility to the company to manoeuvre in the market, he said R&D would decide the competitiveness of Indian SMEs going forward.
“India’s largest EV transmission facility is coming up in Pune within the next few months for producing 100,000 transmission units per year,” he said while quoting statistics of 2035 witnessing entire Europe and 50% of the USA becoming an “electrified automobile industry” with India witnessing encouraging prospects.
“Today, OEMs are looking for suppliers in R&D and we are partnering Stuttgart (Germany) in bringing out the next generation of such products,” he said while describing the company’s key strategies in going forward as: capturing market opportunities in the growing EV space; and the fast-growing demand for ‘automobiles transmission’ in the passenger UVs segment.
With global focus on carbon neutrality and energy security by 2045 calling for agile flexibility, the company was integrating engineering sciences of gearboxes to predict a performance “that will give us an edge in the marketplace,” he said.
“Today, EVs have only one-speed gearboxes, but people are looking for two-speed gearboxes and we have all this technology to move from +niche+ to +mainstream+ amidst ‘headwinds’ but definite growth,” he added.
The company has three manufacturing and assembling facilities located at Sirsi in Karnataka, and Shivare and Bhosari in Pune, he said while highlighting the client base of global OEMs and global transmission systems suppliers with their top-5 customers accounting for 92.66%, 91.28%, 92.86% and 86.94% of their revenue for 6 fiscal months ending September 30, 2022, Fiscal 2022, Fiscal 2021 and Fiscal 2020 respectively.
