Dhoot Transmission Limited has officially opened its initial public offer for public subscription today, aiming to raise 3,066.89 crore rupees from the primary market. The three-day bidding window for the auto-component manufacturer will remain open until August 12, with shares priced in the range of 829 to 871 rupees apiece.
Heavy Anchor Backing and Valuation Landscape
Ahead of the opening, the company secured 918.27 crore rupees from 72 anchor investors on August 7 at the upper price band of 871 rupees per share. Prominent institutions participating in the anchor round included foreign funds such as Abu Dhabi Investment Authority, BlackRock, and Government Pension Fund Global, alongside domestic life insurers including SBI Life and HDFC Life.
The public issue consists of a fresh issue component of up to 1,400 crore rupees alongside an offer for sale of 1.91 crore equity shares worth 1,666.89 crore rupees by promoter entities BC Asia Investments XV Limited and Mangalam Capital Private Limited. Proceeds from the fresh issue are earmarked primarily for debt repayment and capital expenditure requirements.
At the upper end of the price band, Dhoot Transmission commands a market capitalization of roughly 17,810 crore rupees. Peer auto-component makers like Uno Minda and Sona BLW Precision Forgings trade at price-to-earnings multiples exceeding 50x and 70x respectively, giving institutional investors a comparative benchmark as they evaluate Dhoot’s financial trajectory.
Financial Performance and Operating Metrics
The company specializes in wiring harnesses, electronic sensors, controllers, and automotive switches, catering heavily to two-wheeler, commercial vehicle, and electric vehicle original equipment manufacturers. Financial filings indicate steady expansion over recent years:
- Revenue from operations reached 4,563.70 crore rupees in the fiscal year ending March 31, 2026, up from 3,472.24 crore rupees in FY25.
- Profit after tax stood at 396.84 crore rupees for FY26, compared to 353.89 crore rupees reported in FY25.
- Total borrowings were recorded at 841.39 crore rupees as of March 31, 2026.
Key Timelines and Unofficial Chatter
For retail investors, the minimum lot size is set at 17 equity shares, requiring a minimum investment of 14,807 rupees at the upper price band. High net-worth individual applicants in the small HNI category require a minimum of 14 lots amounting to 2,07,298 rupees.
In parallel, unofficial and unverified market chatter suggests the equity shares are commanding a grey market premium of around 240 to 259 rupees in early trade, signaling positive interest among unorganized traders.
The basis of allotment is expected to be finalized on Thursday, August 13, with initiation of refunds and credit of shares to demat accounts slated for August 14. The company is scheduled to make its trading debut on the BSE and NSE on Monday, August 17.
Conclusion
With the subscription window now live, retail and institutional participation over the next three days will determine final demand for the issue. Investors should review the company’s red herring prospectus and balance sheet leverage before making any allocation decisions.
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