Morgan Stanley has sold about 3.73 lakh shares in Divgi TorqTransfer through a block deal for about Rs 22 crore after a muted debut on exchanges. The deal was executed at a gross price of Rs 590.32 per share.
According to the data available with the exchanges, Quant Mutual Fund picked up about 2.63 lakh shares at an average price of Rs 588.87, while Sageone Investment managers bought 3.6 lakh shares.
Earlier during the day, Divgi Transfer shares listed at a mild premium of 5% on the NSE against the issue price of Rs 590 amid unfavourable market sentiments. On BSE, the shares listed at 1.69% premium.
The stock fell as much as 10% in intraday trade, but closed 2.6% higher at Rs 605.50 apiece on the NSE. The IPO, which had a fresh issue of up to Rs 180 crore and an offer for sale of up to 39.34 lakh equity shares, was subscribed 5.44 times .
In volume terms, 3.43 lakh equity shares were traded on the BSE and 34.14 lakh shares on the NSE during the day. The company commands a market capitalisation of Rs 1,850 crore.
The Pune-based automotive component entity is one of the leading suppliers of transfer case systems to original equipment makers (OEMs) and passenger vehicle manufacturers in India.
The company has marquee clients like Tata Motors, Mahindra & Mahindra, and Toyota Kirloskar, which account for 91.2% of total revenue in FY22. The top five clients alone contribute to a significant portion of the company’s revenue.
Analsysts advise long-term investors to hold on to the stock despite a flat listing.
“The current market condition is not favorable. So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at 610 and wait for further upside, whereas those who have a medium- to long-term perspective can hold the stock,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.