Dhoot Transmission Ltd raises ₹918.3 crore from anchor investors including BlackRock and SBI Mutual Fund ahead of its ₹3,067 crore IPO, signalling strong demand as it prepares to list this month.
Dhoot Transmission Ltd has drawn strong interest from institutional investors ahead of its initial public offering, raising ₹918.3 crore from anchor buyers that included BlackRock, Abu Dhabi Investment Authority and SBI Mutual Fund, according to a circular posted on the BSE website. The auto components maker allotted just over 1.05 crore equity shares to 72 funds at ₹871 a share, with domestic mutual funds accounting for the largest share of the anchor placement.
The anchor book was dominated by Indian fund houses, which subscribed through 46 schemes and took 61.27% of the allocation. Alongside SBI Mutual Fund, investors included ICICI Prudential Mutual Fund, HDFC Mutual Fund, WhiteOak, Axis Mutual Fund, Mirae Asset, Amundi Funds, Allianz Global Investors and several insurance and pension investors, underscoring the breadth of demand before the issue opens.
Dhoot Transmission’s ₹3,067 crore IPO will open for public subscription on August 10 and close on August 12, with a price band of ₹829 to ₹871 a share. The issue combines a fresh equity sale of up to ₹1,400 crore with an offer for sale of up to 1.91 crore shares by promoters BC Asia Investments XV Ltd, an entity linked to Bain Capital, and Mangalam Capital Pvt Ltd.
At the top of the price range, the company would be valued at about ₹17,816 crore on a post-issue basis. Dhoot Transmission said it intends to use the proceeds to repay debt, support borrowings at subsidiaries, fund new wiring harness plants in Jhajjar, Haryana, and Hosur, Tamil Nadu, and pursue acquisitions and other strategic initiatives. Founded in 1999 and based in Aurangabad, Maharashtra, the company makes wiring harnesses, electronic sensors, controllers, switches, power cords, cables, connectors and terminals for two-wheelers, commercial vehicles, farm equipment, medical devices and household appliances. Its shares are scheduled to begin trading on August 17.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
