Dhoot Transmission’s upcoming Rs 3,067 crore IPO aims to reduce debt, expand manufacturing capacity, and support growth, backed by Bain Capital with plans to invest in new wiring harness plants.
Dhoot Transmission’s initial public offering will open on August 10, offering investors a chance to buy into the auto component maker at a time when it is seeking to trim debt and expand manufacturing capacity. According to Zee Business, the issue will run for three days and close on August 12, with shares due to list on the BSE and NSE on August 17.
The book-built issue is valued at Rs 3,066.89 crore and combines a fresh issue of 1.61 crore shares worth Rs 1,400 crore with an offer for sale of 1.91 crore shares worth Rs 1,666.89 crore. The price band has been fixed at Rs 829 to Rs 871 a share, and the lot size is 17 shares, which means a retail investor would need at least Rs 14,807 at the upper end of the band to apply for one lot. The company has also set aside a discount of Rs 80 a share for employees, according to the issue details.
Axis Capital is the book-running lead manager for the offering and Kfin Technologies is the registrar. As laid out in the red herring prospectus, qualified institutional buyers will be allotted up to 50% of the net issue, retail investors at least 35% and non-institutional investors at least 15%.
The company plans to use a sizeable portion of the proceeds to strengthen its balance sheet. About Rs 464.80 crore has been earmarked to repay or prepay borrowings, while another Rs 301.77 crore will be channelled into subsidiaries for the same purpose. Dhoot Transmission also intends to invest Rs 150 crore in new wiring harness plants in Jhajjar, Haryana, and Hosur in Tamil Nadu, with the rest set aside for acquisitions and general corporate purposes.
The IPO follows a series of regulatory filings earlier this year. Mint reported that Dhoot Transmission, which is backed by Bain Capital, filed updated draft papers with the Securities and Exchange Board of India on May 24 and had earlier used the confidential pre-filing route in February. The regulator’s observation letter was received on May 10, which allowed the company to proceed with the issue. The same reports said the offering is intended to support growth even as the company reduces leverage.
Dhoot Transmission, founded in April 1998, designs and manufactures wiring harnesses and electrical distribution systems for automotive and non-automotive uses. Its wider product range includes battery packs, sensors, electronic controllers, automotive switches, terminals, connectors and power supply cords. The company’s financials improved in the year ended March 31, 2026, with revenue rising to Rs 4,563.70 crore from Rs 3,472.24 crore a year earlier and profit after tax increasing to Rs 396.84 crore from Rs 353.89 crore. EBITDA also climbed to Rs 710.99 crore from Rs 590.96 crore, even as total borrowings rose to Rs 841.39 crore from Rs 776.06 crore.
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