Divgi TorqTransfer Techniques IPO Evaluation

Divgi TorqTransfer Techniques IPO Evaluation: Divgi TorqTransfer Techniques Restricted is arising with its Preliminary Public Providing. The IPO will open for subscription on March 1st, 2023, and shut on  March third, 2023. It’s seeking to elevate as much as ₹412 Crores. On this article, we are going to take a look at Divgi TorqTransfer Techniques Restricted IPO Evaluation 2023 and analyze its strengths and weaknesses. Preserve studying to seek out out! 

Divgi TorqTransfer Techniques IPO Evaluation– About The Firm

Integrated in 1964, Divgi TorqTransfer Techniques Restricted is engaged within the enterprise of producing automotive elements. They’re of the few gamers in India who develop and supply system-level switch instances, torque couplers, and dual-clutch computerized transmission options.

They’re additionally one of many main suppliers of switch case techniques to automotive OEMs in India and are the one producer of torque couplers in India

Companies Supplied by the corporate:

Divgi TorqTransfer Techniques Restricted has a diversified merchandise portfolio that features:

Torque switch techniques (which embrace four-wheel-drive (“4WD”) and all-wheel-drive (“AWD”) merchandise)

Synchronizer techniques for handbook transmissions and DCT

Parts for the above-mentioned product classes for torque switch techniques and synchronizer techniques in handbook transmission, DCT, and EVs

As well as, they’ve developed:

Transmission techniques for EVs

DCT techniques;

Rear wheel drive handbook transmissions

Divgi TorqTransfer Techniques IPO Evaluation – Monetary Highlights

If we take a look at the financials of Divgi TorqTransfer Techniques. we discover out that their belongings have grown from Rs. 303.70 crores in March 2020 to Rs. 430.21 crores in September 2022. Their revenues additionally comply with an analogous pattern, it has grown from Rs. 170.74 crore in March 2020 to Rs. 241.87 crore in March 2022. As of September 2022, the corporate’s income stands at Rs 137.55 crores for FY22-23. 

Their income have grown from Rs. 28.04 crore in March 2020 to Rs. 46.15 crores in March 2022. As of September 2022, the corporate’s income stand at Rs 25.66 crores for FY22-23.  It is usually necessary to notice that the corporate’s borrowing has considerably decreased from Rs. 50.41 crores In March 2020 to Rs. 0.50 crores as of 30-Sep-22.

Steadiness of the corporate 

Supply : Purple Herring Prospectus of Divgi TorqTransfer Techniques

Revenue and loss Assertion of the corporate

Supply : Purple Herring Prospectus of Divgi TorqTransfer Techniques

Divgi TorqTransfer Techniques IPO Evaluation – Opponents

Following are the opponents of the corporate in every of its product verticals:

Switch Case: Aisin, BorgWarner, Dana, Magna, Univance

Torque Coupler: Aisin, BorgWarner, Schaeffler, Valeo, ZF

Synchroniser Pack: Anand CY Myuteck Automotive, Natesan Synchrocones, Yugal Precision

Strengths of the Firm

The corporate is one the few suppliers in India that develop and supply system-level switch instances, DCT options, torque couplers, and transmission techniques for EVs throughout a variety of automotive automobiles and geographies. Additionally they maintain a management place throughout choose product classes.

The corporate has strategically situated manufacturing amenities that maintain the capability of manufacturing high-precision elements assembly system-level design intent.

The corporate maintained long-term relationships with massive home and international clients.

The corporate consists skilled board of administrators and a senior administration workforce that’s backed by a talented and certified workforce.

The corporate has maintained a constant monetary efficiency and in addition retains its deal with its innovation and R&D capabilities.

Weaknesses of the Firm

The corporate’s enterprise is essentially depending on 5 key clients and shedding any of those clients or a discount in purchases by any of those gamers can have an antagonistic influence on the enterprise.

The corporate’s incapability to export or develop the enterprise in sure international locations during which they’ve geographical focus will influence their enterprise.

The disruption within the availability of uncooked supplies and elements or the modifications of their costs will have an effect on the enterprise

A disruption within the provide of uncooked supplies and key elements or the failure on behalf of suppliers and third-party logistics service suppliers to fulfill their obligations may have a major influence on the enterprise.

Divgi TorqTransfer Techniques Evaluation – Key IPO Data

Promoters: Jitendra Bhaskar Divgi, Hirendra Bhaskar Divgi And Divgi Holdings Personal Restricted

Ebook Operating Lead Supervisor: Inga Ventures Personal Restricted, Equirus Capital Personal Restricted

Registrar to the Provide: Hyperlink Intime India Personal Restricted 

The Goal of the Difficulty

The web proceeds from this situation will probably be utilized for the next functions:

For financing the capital expenditure necessities for the acquisition of equipment and gear at corporations manufacturing facility

Common company functions

In Closing

On this article, we regarded on the particulars of Divgi TorqTransfer Techniques IPO Evaluation 2023. Analysts stay divided on the IPO and its potential positive factors. It is a good alternative for traders to look into the corporate and analyze its strengths and weaknesses. That’s it for this submit.

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