Auto components manufacturer Dhoot Transmission Ltd will launch its ₹3,067 crore initial public offering (IPO) on August 10, 2026. The issue has set a price band of ₹829 to ₹871 per share and will remain open for subscription until August 12, 2026. According to reports from The Hindu BusinessLine, the proposed initial share sale is structured as a combination of a fresh issue of equity shares valued at ₹1,400 crore and an offer for sale (OFS) component of ₹1,666.89 crore by promoters BC Asia Investments XV Ltd and Mangalam Capital Private Ltd. The anchor investor portion opened on August 7, 2026, with the company successfully raising ₹918.27 crore from 72 anchor investors at ₹871 per share. The public issue will be managed by Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities, SBI Capital Markets, and 360 ONE WAM as the book-running lead managers. The equity shares are proposed to be listed on the BSE and NSE on or around August 17. At the upper end of the price band, the company will command a post-issue market capitalisation of about ₹17,816 crore, while the valuation at the lower end will be around ₹17,025 crore.
According to the company's exchange filing on August 7, 2026, Dhoot Transmission successfully raised ₹918.27 crore from 72 anchor investors at ₹871 per share, allocating 1.05 crore equity shares with a face value of ₹2 per share and share premium of ₹869 per equity share. The anchor investor participation included global investors such as BlackRock, Abu Dhabi Investment Authority (ADIA), Amundi and Chartered Finance & Leasing, demonstrating strong international confidence in the company's growth prospects. Domestic mutual funds participated through 46 schemes, including SBI Mutual Fund, ICICI Prudential AMC, HDFC Mutual Fund, Axis Mutual Fund, Mirae Asset, Nippon India Mutual Fund, Franklin Templeton, Tata Mutual Fund, Invesco Mutual Fund, HSBC Mutual Fund, PGIM India Mutual Fund and Sundaram Mutual Fund, acquiring 64.59 lakh equity shares worth ₹645.9 crore. Life insurers including SBI Life Insurance, HDFC Life Insurance, ICICI Prudential Life Insurance, Axis Max Life Insurance and Bajaj Allianz Life Insurance also participated, acquiring 9.21 lakh shares worth ₹80.3 crore. As per market observers, Dhoot Transmission's shares were trading at a grey market premium (GMP) of around 29 percent ahead of the IPO, indicating strong market sentiment.
As reported by The Economic Times, the company has outlined specific plans for the fresh proceeds from the IPO. ₹766.5 crore will be used to retire existing debt, while ₹301.77 crore will fund two new manufacturing facilities in Haryana and Tamil Nadu. The remainder is earmarked for general corporate purposes and unspecified acquisitions. The company has reserved IPO shares worth ₹6 crore for eligible employees, who will receive a discount of ₹80 per share on the final offer price. Post-IPO, the company expects to carry a cash surplus of approximately ₹900-₹1,000 crore on a debt-free balance sheet. The company plans to use proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings, investment in subsidiaries for debt repayment, and setting up new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion of the proceeds will also be used for inorganic acquisitions and other strategic initiatives.
According to The Economic Times, Dhoot Transmission ranks among the top two players in India's two-wheeler and three-wheeler wiring harness market, with a 41% market share. The company also has a dominant position in the electric two-wheeler and three-wheeler segment, where it commands nearly 70% market share in FY26. The company has demonstrated remarkable financial growth across key metrics, as highlighted by The Hindu BusinessLine. Dhoot Transmission's revenue increased from ₹900 crore in 2019 to ₹4,500 crore in 2026, representing a five-fold growth despite India's two-wheeler production remaining stable at roughly 21 million units. The company's net profit grew from ₹298.74 crore in FY24 to ₹396.65 crore in FY26, indicating improved profitability. Total assets expanded from ₹1,711.69 crore in FY24 to ₹4,114.82 crore in FY26, reflecting the company's substantial asset base growth. For FY26, the company reported a 12.1 percent year-on-year increase in profit to ₹396.8 crore, while revenue grew 31.4 percent to ₹4,525 crore.
Analysts have shared a bullish view on Dhoot Transmission's IPO, noting that the company is a leading manufacturer of wiring harnesses and electrical distribution systems for the automotive and industrial sectors. According to Business Standard, brokerage firm Swastika noted that Dhoot Transmission has delivered a faster 3-year revenue compound annual growth rate of 27 percent compared to the legacy auto ancillary market growth rate of 12 percent to 15 percent. The company is a Top-2 player in 2W/3W wiring harnesses with a dominant position in the EV segment and is well-positioned to benefit from rising EV penetration, premiumisation, and higher wiring harness content per vehicle. Equivision noted that Dhoot Transmission is among India's largest manufacturers of 2W and 3W wiring harnesses and holds over 70 percent market share in the 3W segment. The company has maintained 13-year average relationships with its top five customers, supported by deep engineering integration and localization initiatives, ensuring revenue visibility and high switching costs. Capacity expansions at Hosur (wiring harnesses) and Chakan (battery manufacturing) are expected to strengthen its position in the growing EV and automotive electronics market. Swastika has given a 'Subscribe' rating for long-term growth potential and potential listing gains, while noting that the valuation is fairly priced, making disciplined position sizing advisable. Equivision has assigned an 'Apply' rating for the stock.
