Automotive component maker Dhoot Transmission Limited has officially set the Dhoot Transmission IPO price band at ₹829 to ₹871 per equity share for its upcoming ₹3,066.89 crore public issue. The subscription window opens on August 10, 2026, and closes on August 12, 2026, marking one of the significant mainboard auto-ancillary offerings of the year. Backed by private equity giant Bain Capital, the company operates across 22 manufacturing facilities globally and serves major two-wheeler and four-wheeler original equipment manufacturers.
Key Transaction Terms and Bidding Limits
The total issue size of ₹3,066.89 crore comprises a fresh issue of shares worth ₹1,400 crore and an offer for sale of up to 1,91,37,602 equity shares totaling ₹1,666.89 crore from existing shareholders. Institutional investors have been allocated 50% of the net issue, non-institutional bidders get 15%, while 35% is reserved for retail investors.
Retail buyers can place bids for a minimum lot size of 17 shares, requiring a base investment of ₹14,807 at the upper price band. Maximum retail participation is capped at 13 lots (221 shares) for an outlay of ₹1,92,491.
| Metric | Detail |
| Price Band | ₹829 to ₹871 per share |
| Face Value | ₹2 per share |
| Minimum Lot Size | 17 shares (₹14,807) |
| Bidding Dates | August 10, 2026 to August 12, 2026 |
| Basis of Allotment | August 13, 2026 |
| Tentative Listing Date | August 17, 2026 (BSE, NSE) |
Fresh Capital Allocation and Expansion Plans
Out of the ₹1,400 crore raised through fresh equity issuance, Dhoot Transmission plans to deploy ₹464.80 crore toward full or partial repayment of its outstanding borrowings. Another ₹301.77 crore will be injected into key operating subsidiaries—including Dhoot Autocomponents, Dhoot Electricals Systems, Dhoot Automotive Systems, and UK-based operations—to reduce overall debt obligations.
Crucially, ₹150 crore is earmarked for greenfield capital expenditure to establish two new wiring harness manufacturing plants located in Jhajjar (Haryana) and Shoolagiri (Hosur, Tamil Nadu). The remaining fresh proceeds will support strategic inorganic acquisitions and general corporate purposes.
Financial Performance and Customer Concentration Profile
For the financial year ended March 31, 2026, Dhoot Transmission reported total revenue of ₹4,563.70 crore, up 31% compared to ₹3,472.24 crore in FY25. Profit after tax rose 12% year-on-year to ₹396.84 crore from ₹353.89 crore. EBITDA expanded to ₹710.99 crore, with debt-to-equity improving significantly to 0.35x.
A critical operational detail highlighted in company filings is its heavy client concentration. Dhoot Transmission derives over 80% of its total revenue from its top 10 OEM customers, including Bajaj Auto, TVS Motor Company, Honda Motorcycle & Scooter India, and Royal Enfield. Furthermore, the company operates without long-term volume purchase commitments from these OEMs, making order book stability contingent on ongoing customer relationships and overall vehicular production volumes.
Unverified Grey Market Sentiment
In early market activity, unofficial and unverified market chatter indicates a grey market premium of approximately ₹220 per share over the upper price band of ₹871, representing a theoretical premium of roughly 25%. Market participants emphasize that grey market trading remains strictly informal, unregulated, and subject to high volatility ahead of the formal bidding dates.
Frequently Asked Questions
How can investors track the allotment status?
Allotment status will be processed by Kfin Technologies Limited on August 13, 2026. Bidders can verify their allocation online using their PAN card, DP ID, or Application Number on the registrar portal or via the BSE and NSE platforms.
What is the pre-IPO ownership structure?
Private equity firm Bain Capital holds approximately 55% equity stake prior to the offer, while the promoter Dhoot family holds the remaining equity. Bain Capital is partially monetizing its holding through the Offer for Sale component.
Conclusion
With anchor investor allocations scheduled for August 7, 2026, investor focus now shifts to institutional demand on opening day. Market participants will evaluate how the company balances its debt-reduction efforts against high customer concentration risks in an evolving automotive landscape.
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