By selling all 3.73 lakh of its shares at an average price of Rs. 590.32 each, or Rs. 22.05 crore, Morgan Stanley Asia abandoned the Divgi business.
On March 14, Quant Mutual Fund and Sageone Investment Managers LLP purchased shares in Divgi Torqtransfer Systems, a car accessory firm, for Rs 37.09 crore.
In late morning trades, the stock recovered its losses, and it ended the first trading day on the NSE at Rs 605.20, up 2.6 percent from the issue price of Rs 590 a share.
According to bulk trades data made public by the exchange, Quant Mutual Fund purchased 2.63 lakh shares of Divgi Torqtransfer Systems and Sageone Investment Managers LLP purchased 3.6 lakh shares of the business through open market transactions.
For Sageone Investment Managers and Quant Mutual Fund, respectively, the average cost of acquiring shares was Rs 597.59 a share.
Nevertheless, Morgan Stanley Asia (Singapore) Pte departed Divgi by selling all 3.73 lakh shares for Rs 22.05 crore, or an average price of Rs 590.32 per share.
Divgi Torqtransfer Systems’ public offering of Rs 412 crore was announced earlier this month on March 1-3 and received 5.44 times as much interest. The offer’s price range was Rs 560–590 per share.
Given the solid business growth prospects, steady financial performance, positive long-term client relationships, and a fair price, the majority of experts suggested holding the auto auxiliary firm shares.
The company recorded sales of Rs 233.78 crore for FY22 as opposed to Rs 186.58 crore the previous year. The net profit for the year was Rs 46.15 crore compared to Rs 38.04 crore the previous year.
With leadership in a few key product categories, Divgi is one of the few suppliers in India with the ability to develop and provide system-level transfer cases, torque couplers, DCT solutions, and transmission systems for electric vehicles (EVs) across a broad range of automotive vehicles and geographies.
In Maharashtra and Karnataka, the firm runs three production and assembly facilities. A brand-new factory is being built in Maharashtra’s Shirwal and is planned to be completely operational by the fiscal year 2024.
