Divgi TorqTransfer Systems IPO lists at 5.08% premium

Divgi TorqTransfer Systems IPO had a good listing on 14th March 2023, listing at a small premium of 5.08%, but closing the day sharply below the listing price, albeit still above the issue price of the IPO. You can also blame it on the trading day, as the markets have been under a lot of pressure after the SVB Financial crisis resulted in a sell-off on banking stocks. Perhaps, it was the wrong day to list as the Nifty fell by another 111 points and got perilously close to the 17,000 mark. IPO performance on such a day was bound to remain tepid, and that rubbed off on the markets too.

The stock of Divgi TorqTransfer Systems Ltd did show some bouts of volatility during the day and closed the day, almost at the mid-point between the issue price and the opening price of the stock. While the closing was below the opening price of the stock, it was surely better than the issue price of the IPO, so investors are not exactly complaining. With subscription of about 5.44X overall and QIB subscription at 7.83X, the listing was expected to be moderately positive; which is what the listing was. Here is the Divgi TorqTransfer Systems Ltd listing story on 14th March 2023.

The IPO price was fixed at the upper end of the band at Rs. 590 per share which was understandable considering that the subscription was good under the circumstances. One can argue that it was ambitious considering the rather moderate 5.44X overall subscription and the 7.83X QIB subscription in the IPO, despite the small issue size. But, that is a different matter altogether. In addition, the retail portion had got just a little over 4 times subscription in the IPO. The price band for the IPO was Rs. 560 to Rs. 590. On 14th March 2023, the stock of Divgi TorqTransfer Systems Ltd listed on the NSE at a price of Rs. 620, a premium of 5.08% on the IPO issue price of Rs. 890. On the BSE, the stock listed at Rs. 600, a premium of 1.69% over the IPO issue price.

On the NSE, Divgi TorqTransfer Systems Ltd closed on 14th March 2023 at a price of Rs. 605.50 per share. That is a first day closing premium of 2.63% on the issue price of Rs. 590. However, the closing price was at a discount of -2.34% on the listing price of Rs. 620. In fact, the listing price turned out to be the high price of the day and the stock traded all through the day below the IPO opening price. On the BSE, the stock closed at Rs. 605.15. That represents a first day closing premium of 2.57% over the issue price and a premium of 0.86% over the listing price on the stock exchange. On the NSE, the stock listed at a premium but closed the day below the listing price However, on the BSE, the closing price was better than the IPO price and the listing price. However, what is commendable is that the stock saw good traction in the market despite a tepid market situation as well as moderate subscription for the IPO.

On Day-1 of listing on the National Stock Exchange (NSE), Divgi TorqTransfer Systems Ltd touched a high of Rs. 620 and a low of Rs. 560. Clearly, the stock listed at a good premium to the issue price but could not hold on amidst rather negative market conditions. That was evident in the closing of the stock on a day when global sentiments were rather weak. On Day-1 of listing, the Divgi TorqTransfer Systems Ltd stock traded a total of 34.15 lakh shares on NSE amounting to value of Rs. 203.71 crore on the first day. The order book during the day showed a lot of selling through the day after the strong opening, but a late bounce did bring up the stock sharply from the lows of Rs. 560 per share. Overall, the listing day performance can be considered satisfactory in a tough market.

On Day-1 of listing on the Bombay Stock Exchange (BSE), Divgi TorqTransfer Systems Ltd touched a high of Rs. 615.75 and a low of Rs. 557.20 per share. Clearly, the stock listed at a premium to the issue price and even built on the premium despite negative market conditions. That was evident in the rather strong closing of the stock on a day when global sentiments were rather weak. On Day-1 of listing on the BSE, the Divgi TorqTransfer Systems Ltd stock traded a total of 3.43 lakh shares amounting to value of Rs. 20.23 crore on the first day. The order book during the day showed a lot of selling through the day after the strong opening, but a late bounce did bring up the stock sharply from the lows of Rs. 557.50 per share. Overall, the listing day performance can be considered satisfactory but tepid.

While the volumes on the BSE were nearly a tenth of the volumes on the NSE, the trend was once again the same in both the exchanges. The order book through the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time. However, some buying in the late hours helped the stock to recover from lower levels. On the NSE, out of the total 34.15 lakh shares traded during the first day of trading, the deliverable quantity represented 19.85 lakh shares or a deliverable percentage of 58.13% on the NSE on the first day. That shows a lot of delivery selling. Even on the BSE, out of the total 3.43 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 1.76 lakh shares representing total deliverable percentage of 51.39%.

At the close of Day-1 of listing, Divgi TorqTransfer Systems Ltd had a market capitalization of Rs. 1,850.73 crore with free-float market cap of Rs. 240.59 crore. The stock has been admitted in the normal settlement (T+1) cycle in the B group on the BSE and on the T+1 equity segment in the NSE too.