Dhoot Transmission shares gained nearly 6% in Thursday's trade to hit a fresh 52-week high, with the stock opening marginally lower at ₹1,400 before quickly reversing losses to move into positive territory. The stock hit an intraday high of ₹1,485 amid broad-based buying across markets, with shares trading 4% higher at ₹1,462 as of 12:45 PM with 8.5 million shares changing hands. According to Business Standard, the stock has gained 70% from its IPO price of ₹871, demonstrating strong investor confidence in the automotive wiring harness manufacturer. The market capitalisation stood at ₹24,290.08 crore as of the latest trading session, reflecting the company's growing market presence.
Ambit Capital has initiated coverage on Dhoot Transmission with a 'Buy' rating and a target price of ₹1,598, implying an upside of around 14% from the previous close of ₹1,404. As per Business Standard, the brokerage's positive outlook was boosted by the company's strong market position and growth prospects. Ambit noted that Dhoot Transmission leads 2/3W wiring harness with 41% share, and ~70% in E-2/3W, highlighting the company's dominant position in the electric vehicle segment. The brokerage expects PAT to grow at 31% CAGR over FY26-29, driven by higher wiring harness content in E2/3W versus ICE vehicles and rising electronics content. EVs form 24% of the company's revenue, which could reach 33% by FY29 as E-2W hits inflection point, providing long-term growth visibility.
The initial public offering of the Bain Capital-backed automotive wiring harness manufacturer demonstrated exceptional investor demand during its subscription period. As reported by CNBC TV18, the IPO was subscribed 74.21 times by the close of bidding, receiving bids for 185.20 crore equity shares against 2.50 crore shares on offer. Qualified institutional buyers led the demand with their portion subscribed 212.92 times, while the non-institutional investor category was subscribed 51.93 times and the retail portion was subscribed 8.12 times. The subscription status stood at 74.21 times by the third day of the bidding period, with the offering launched for subscription from Monday, August 10 to Wednesday, August 12. According to The Economic Times, the IPO was open for subscription from August 10 to August 12 and received an overwhelming response from investors across categories. The IPO reserved not more than 50% of shares for qualified institutional buyers, not less than 15% for non-institutional investors, and not less than 35% for retail investors.
According to The Economic Times, market experts remain positive on Dhoot Transmission's long-term prospects, citing its strong revenue growth, established position in the wiring harness business and rising EV exposure. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., highlighted the company's strong revenue growth, established position in wiring harnesses and increasing EV exposure as key drivers of its long-term growth outlook. However, she noted that elevated customer concentration and execution risks warrant monitoring, recommending holding with a stop-loss of ₹1,100. The company has earmarked ₹150 crore for setting up new wiring harness manufacturing facilities at Jhajjar in Haryana and Shoolagiri in Hosur, Tamil Nadu to expand production capacity. The remaining proceeds will be used to pursue inorganic growth opportunities, including acquisitions, as well as for general corporate purposes. Dhoot Transmission ranks among the top two players in India's two-wheeler and three-wheeler wiring harness market, with a 41% market share, and its position is even stronger in electric two-wheelers and three-wheelers, where it commands nearly 70% market share in FY26. Around 95% of its automotive product portfolio is either EV-focused or powertrain-neutral, positioning the company to benefit from long-term trends such as vehicle electrification, premiumisation, connected mobility and automation.
The ₹3,066.89 crore IPO was a combination of new shares valued at ₹1,400 crore and an offer for sale component of ₹1,666.89 crore by the company's promoters BC Asia Investments XV and Mangalam Capital Pvt Ltd. According to Business Standard, the IPO comprised a fresh issue of equity shares worth ₹1,400 crore and an offer for sale (OFS) of 1,91,37,602 equity shares by existing shareholders, including Bain Capital. The price band for the IPO was fixed at ₹829-871 per share. At the upper price band, the IPO is valued at 44.9x FY26 post-issue P/E, which market expert Mahesh M. Ojha from Kantilal Chhaganlal Securities considers fairly valued given the company's strong market position. The company plans to use proceeds primarily to repay or prepay certain borrowings, with a portion invested in subsidiaries to help reduce their debt. At the upper price band, the company will command a post-issue market capitalisation of ₹17,816 crore, while the valuation at the lower end will be around ₹17,025 crore.
