Summary of this article
Dhoot Transmission IPO opens August 10 and closes August 12.
The company set the IPO price band at Rs 829-871.
The public issue size aggregates up to Rs 3,066.89 crore.
The public issue of Dhoot Transmission is expected to open for subscription on August 10, 2026. The company filed its Red Herring Prospectus (RHP) on August 3 and has announced the price band for the public issue today. Notably, the public issue will be conducted as a 100 per cent book-built offer consisting of a fresh issue and an offer for sale (OFS).
Ahead of the opening of the bidding window, here is a detailed look at the key aspects of the public issue and the company’s business that investors should know before the public issue opens for subscription.
Dhoot Transmission IPO: Offer Size and Selling Shareholders
The initial public offering (IPO) aggregates up to Rs 3,066.89 crore. It comprises a fresh issue of 16.10 million equity shares of face value of Rs 2 each, aggregating up to Rs 1,400 crore, and an OFS of 19.10 million equity shares aggregating up to Rs 1,666.89 crore. The OFS includes the sale of nearly 16.01 million shares by promoter selling shareholder BC Asia Investments XV and up to 3.11 million shares by promoter group selling shareholder Mangalam Capital.
Dhoot Transmission IPO: Price Band and Lot Size
Dhoot Transmission has set the price band for its public issue at Rs 829-871 per share. Retail investors can place bids for a minimum of 17 shares, which amounts to an investment of Rs 14,807. Small non-institutional investors (sNIIs) can bid for a minimum of 14 lots or 238 shares, aggregating to Rs 2,07,298, and big non-institutional investor (bNII) category can bid for 68 lots or 1,156 shares, amounting to Rs 10,06,876.
Dhoot Transmission IPO: GMP
Dhoot Transmission’s shares are currently trading with a strong premium in the grey market. According to websites that track the demand for shares of unlisted companies, Dhoot Transmission shares are currently quoting a grey market premium (GMP) of Rs 239 over the upper end of the price band. Based on the current GMP trend, the stock is expected to list at Rs 1,110 with a strong premium of 27.44 per cent.
Dhoot Transmission IPO: Key Financials
In the fiscal year ended March 31, 2026, Dhoot Transmission’s total revenue from operations stood at Rs 4,563.70 crore, representing a 31 per cent year-on-year (y-o-y) increase compared to Rs 3,472.24 crore in the preceding fiscal. The company posted a net profit of Rs 396.84 crore during this period, reflecting a 12.14 per cent growth y-o-y from Rs 353.89 crore in FY25. The net worth of the company grew significantly by 145.06 per cent y-o-y, standing at Rs 2,397.15 crore in FY26 compared to Rs 978.18 crore in the previous year.
Dhoot Transmission: Business Model
Dhoot Transmission designs, develops, assembles, and manufactures critical wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems, and data cables. According to the RHP, the company services the Indian automotive sector, which contributed 65.47 per cent of the company's revenue from operations for the two-wheeler (2W) sector and 12.86 per cent for the three-wheeler (3W) sector in FY26.
Dhoot Transmission: Competitors
Dhoot Transmission competes globally with a number of other automotive, non-automotive, and industrial component manufacturers and distributors that produce and sell products similar to theirs. Some of the listed companies Dhoot Transmission competes with include Motherson Sumi Wiring India, Minda Corporation, Uno Minda, and Sona BLW Precision Forgings.
Dhoot Transmission IPO: Should You Apply?
Investors interested in the company’s IPO should assess the business fundamentals before applying.
Dhoot Transmission IPO: Key Risks
The company relies on a limited number of customers, with its top ten customers contributing 80.93 per cent of its total revenue from operations in FY26.
The company generated a significant portion of its revenue from operations in FY26 strictly from the 2W and 3W automotive sectors combined, exposing it to sector-specific downturns.
The lack of firm, long-term volume commitments with OEM customers leaves the company vulnerable to reductions in customer orders.
Dhoot Transmisssion IPO: Key Strengths:
Dhoot Transmission claims to have a proven track record as a company operating in India's 2W and 3W wiring harness market.
It has established in-house research, design, and development (R&D) capabilities to build innovative systems, including specialised solutions for the transition to Electric Vehicle (EV) platforms.
The company claims that it is positioned to capitalise on key industry trends such as premiumisation and can leverage its capabilities to deliver sustained growth.
Dhoot Transmission IPO: Objective
The company plans to use the proceeds of the public issue for repayment or prepayment, in full or in part, of certain outstanding borrowings. A portion of the proceeds will also be invested in the company’s subsidiaries to repay or prepay their outstanding borrowings. A portion of the funds will also be used for setting up new wiring harness manufacturing plants at Sector 11, Jhajjar, Haryana, and Shoolagiri, Hosur, Tamil Nadu, and for funding general corporate purposes.
