Summary of this article
Dhoot Transmission has set the IPO price band at Rs 829-Rs 871
The company raised Rs 918.3 crore from anchor investors before the issue
The IPO shares will list on NSE and BSE on August 17
Dhoot Transmission IPO GMP: Auto components maker Dhoot Transmission’s initial public offering (IPO) opened for subscription on August 10, and will close on August 12. The Rs 3,066.89 crore IPO comprises a fresh issue of Rs 1,400 crore and an offer for sale (OFS) of Rs 1,666.89 crore.
Ahead of the issue opening, Dhoot Transmission raised Rs 918.3 crore from anchor investors. The company allotted more than 10.5 million shares to 72 funds at Rs 871 apiece. The anchor book included BlackRock, Abu Dhabi Investment Authority and SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, WhiteOak, Axis Mutual Fund, Mirae Asset, Government Pension Fund, Amundi Funds and Allianz Global Investors.
Domestic mutual funds accounted for the biggest portion of the anchor allocation. Eight fund houses invested through 46 schemes and were allotted 6.46 million shares, accounting for 61.27 per cent of the anchor book.
Dhoot Transmission is an electrical and electronics company that makes wiring harnesses and electrical distribution systems for automotive and non-automotive applications. Its products include wiring harnesses, battery packs, sensors, electronic controllers, automotive switches, terminals, connectors and power supply cords. The company supplies products for both internal combustion engine and electric vehicle platforms.
Dhoot Transmission said in its red herring prospectus (RHP) that its is among the top two players in India's two-wheeler and three-wheeler wiring harness market, with a 41 per cent market share. It has a nearly 70 per cent share in the electric two-wheeler and three-wheeler wiring harness segment in FY26.
Dhoot Transmission IPO Details
Dhoot Transmission has fixed the IPO price band at Rs 829-Rs 871 per share. The issue consists of 35.22 million shares, including 16.08 million shares through the fresh issue and 19.14 million shares through the OFS. At the upper end of the price band, the issue size works out to Rs 3,066.89 crore.
The lot size is 17 shares. A retail investor applying for one lot at the upper price band will have to invest Rs 14,807. The face value of each share is Rs 2.
Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), SBI Capital Markets and 360 ONE WAM are the book-running lead managers for the IPO. Kfin Technologies is the registrar.
Dhoot Transmission IPO Objectives
According to the company's RHP, Dhoot Transmission will use part of the fresh issue proceeds to repay or prepay certain outstanding borrowings, for which it has allocated Rs 464.80 crore.
The company will invest another Rs 301.77 crore in Dhoot Autocomponents, Dhoot Electricals Systems, Dhoot Automotive Systems and Dhoot Transmission UK to help the subsidiaries repay or prepay their outstanding borrowings.
Dhoot Transmission plans to spend Rs 150 crore on setting up new wiring harness manufacturing plants at Sector 11 in Jhajjar, Haryana, and Shoolagiri in Hosur, Tamil Nadu.
The company will use the remaining proceeds to fund unidentified acquisitions and for general corporate purposes, according to the RHP.
Dhoot Transmission IPO Financial Performance
Dhoot Transmission reported total income of Rs 4,563.70 crore in FY26, up 31 per cent from Rs 3,472.24 crore in FY25 and 63 per cent from Rs 2,799.32 crore in FY24.
Earning s before interests, taxes, depreciation, amortisation (Ebitda) stood at Rs 710.99 crore in FY26, rising 20 per cent from Rs 590.96 crore in FY25 and 39 per cent from Rs 512.40 crore in FY24. Profit after tax (PAT) came in at Rs 396.84 crore, up 12 per cent from Rs 353.89 crore in FY25 and 33 per cent from Rs 298.75 crore in FY24.
The company's assets stood at Rs 4,114.83 crore in FY26, up 76 per cent from Rs 2,336.23 crore in FY25 and 140 per cent from Rs 1,711.70 crore in FY24. Net worth more than doubled to Rs 2,397.15 crore in FY26 from Rs 978.18 crore in FY25 and rose 224 per cent from Rs 741.01 crore in FY24.
Net debt stood at Rs 841.39 crore in FY26, up 8 per cent from Rs 776.06 crore in FY25 and 52 per cent from Rs 554.90 crore in FY24. Despite the rise in borrowings, the company's debt-to-equity ratio improved to 0.35 in FY26 from 0.78 in FY25.
Dhoot Transmission's profitability metrics weakened in FY26. Return on equity (ROE) fell to 16.30 per cent from 35.60 per cent in FY25, while return on capital employed (ROCE) declined to 19.14 per cent from 29.66 per cent. Return on net worth (RoNW) slipped to 16.55 per cent from 36.18 per cent.
PAT margin declined to 8.70 per cent in FY26 from 10.19 per cent in FY25, while Ebitda margin fell to 15.71 per cent from 17.15 per cent.
Dhoot Transmission IPO Subscription Status
The company has reserved up to 50 per cent of the net issue for qualified institutional buyers (QIBs), at least 35 per cent for retail investors and at least 15 per cent for non-institutional investors (NIIs).
The subscription figures were not available in the data provided at the time of writing. The category-wise demand from QIBs, NIIs and retail investors will be updated as bids come in during the three-day issue period.
Dhoot Transmission IPO GMP Today
Dhoot Transmission IPO's latest grey market premium (GMP) stood at Rs 259 per share as of 7:37 AM on August 10.
At the upper price band of Rs 871, the latest GMP indicates an estimated listing price of around Rs 1,130 per share. This implies a potential gain of 29.74 per cent over the IPO's upper price band.
However, investors should note that GMPs are unofficial indicator of market sentiment and does not guarantee the actual listing price of the shares.
