Dhoot Transmission, backed by Bain Capital, launches a ₹3,067 crore IPO amid strong investor interest, tapping into the EV shift with expansion plans in Haryana and Tamil Nadu.
Bain Capital-backed Dhoot Transmission opens its initial public offering on Monday, seeking to raise ₹3,067 crore in a deal that combines a fresh issue with a share sale by existing investors. The price band is set at ₹829 to ₹871 a share, the issue closes on Wednesday and the lot size is 17 shares. The offering has already drawn strong interest: the company raised ₹918.27 crore from anchor investors before the public sale began, according to the company’s disclosure.
The IPO comprises a fresh issue of ₹1,400 crore and an offer for sale of about 1.91 crore shares. According to the updated draft papers filed with the market regulator and reported by Mint and Moneycontrol, the fresh proceeds are intended mainly to reduce debt, with additional money earmarked for new manufacturing facilities in Haryana and Tamil Nadu. The company also expects to emerge with a cash surplus and a debt-free balance sheet after the listing.
Dhoot Transmission, founded in 1998, makes wiring harnesses and electrical distribution systems for automotive and non-automotive uses. The business has widened its product range into sensors, controllers, connectors, terminals, battery packs and other components, and it serves customers across several industries and geographies, according to company disclosures reported by Moneycontrol and the Financial Express. Brokerage notes cited by The Hindu BusinessLine say the company is well placed to benefit from the shift towards electric vehicles, particularly in the two-wheeler and three-wheeler segments, where it has built a strong position.
Analysts are broadly positive, although several say the valuation is full. SBI Securities highlighted the company’s exposure to electric and powertrain-neutral products, while Choice Broking pointed to its dominant position in electric two- and three-wheeler harnesses and a high share of revenue already tied to EV-linked products. Anand Rathi said the offer looks fairly priced but still recommended it for long-term investors, and Swastika Investment also suggested subscribing with discipline. Other brokerages, including Ventura Securities, Bajaj Broking and Kunvarji Wealth Solutions, echoed that view, citing market leadership, customer relationships and planned expansion.
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