Infosys co-founder family trust to get 370% return in Divgi Torqtransfer IPO
2 min read . Updated: 27 Feb 2023, 06:07 PM IST
PremiumNRJN firm will make a profit of ₹66.98 crore, which is 370 per cent returns of his investment of ₹18 crore.
Auto parts manufacturer Divgi Torqtransfer IPO will open on 1 March, 2023 and may give a whopping 370 percent return to Infosys co-founder Nandan Nilekani's family trust, called NRJN Family Trust.
NRJN Family Trust, which is owned by Infosys founder Nandan Nilekani, will offload 14.4 lakh shares of Divgi Torqtransfer. The initial public offering of Divgi Torqtransfer will open on 1 March for subscription and close on March 3, with a price band of ₹560-590 apiece. The anchor bidding will be on February 28.
The ₹412-crore IPO includes a a fresh issue of ₹180 crore and the remaining is offer for sale (OFS) which makes up 39.34 lakh equity shares. Oman India Joint Investment Fund II, NRJN Family Trust, Bharat Bhalchandra Divgi and Sanjay Bhalchandra Divgi are selling their shares.
According to red herring prospectus (RHP), the weighted average cost of acquisition of Nielkani's NRJN Family Trust was ₹125.28. The shares, if allotted to the IPO investors at the upper price band of ₹590, the NRJN firm will make a profit of ₹66.98 crore, which is 370 per cent returns of his investment of ₹18 crore.
Infosys founder Nandan Nilekani's trust, NRJN, owns 23.94 lakh shares or 8.7 per cent equity in Divgi Torqtransfer.
The company intends to meet capital expenditure requirements for purchase of equipment and machineries of the manufacturing facilities from the net proceeds of the fresh issue.
The firm specialised in developing and delivering system-level solutions for transfer case, torque coupler, and DCT. It has three manufacturing and assembly plants in Karnataka and Maharashtra.
Inga Ventures Pvt Ltd and Equirus Capital Pvt Ltd are the lead managers to the issue.
The net profit Divgi Torqtransfer for FY 22 stood at ₹46.15 crore as against ₹38.04 crore last year.