Dhoot Transmission Ltd prepares to raise ₹3,067 crore through its upcoming IPO, with investor enthusiasm reflected in grey market premiums and analyst optimism, as the company capitalises on its automotive and EV segment strengths.
Dhoot Transmission Ltd is set to open its initial public offering on August 10 and close it on August 12, with the company seeking to raise ₹3,067 crore at a price band of ₹829-871 a share. The issue combines a fresh sale of 1.6 crore equity shares with an offer for sale of up to 1.9 crore shares by existing investors, meaning the company itself will not receive proceeds from the secondary component.
Analysts have struck a positive note on the offer, pointing to Dhoot Transmission’s position as a major maker of wiring harnesses and electrical distribution systems for automotive and industrial customers. Swastika said the company has outpaced the broader auto ancillary market over the past three years and highlighted its strength in two- and three-wheeler wiring harnesses and the electric vehicle segment, while also flagging customer concentration and project execution as watchpoints. Equivision was similarly constructive, citing the company’s deep relationships with original equipment manufacturers and its expanding EV-related product base.
The grey market is signalling firm interest. According to market trackers quoted by Business Standard, the shares were changing hands at ₹1,121 by mid-afternoon, implying a premium of ₹250, or 28.7 per cent, above the top end of the price band. Investors can bid for a minimum of 17 shares and in multiples thereafter, with 50 per cent of the issue reserved for qualified institutional buyers, 15 per cent for non-institutional investors and 35 per cent for retail buyers.
The company’s path to the market has been closely watched. Mint reported earlier that Bain Capital-backed Dhoot Transmission filed updated draft papers with the market regulator after using the confidential pre-filing route, while Financial Express said the Securities and Exchange Board of India has since approved the float. The shares are expected to list on the BSE and NSE on or around August 17, with Axis Capital acting as lead manager and Kfin Technologies as registrar.
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