Dhoot Transmission sets IPO price band at Rs 829-871; issue to open on Aug 10

Dhoot Transmission Ltd. is set to launch its Rs 3,066.89-crore initial public offering (IPO) on August 10, 2026, with the company fixing the price band at Rs 829–871 per share.

Ahead of the issue opening, the IPO commands a grey market premium (GMP) of around Rs 200, indicating a potential 23% premium over the upper price band. Based on the current GMP, the stock is estimated to list at around Rs 1,071 per share, although GMP is an unofficial market indicator and not a guarantee of listing gains.

Dhoot Transmission IPO Details

The IPO comprises a fresh issue of 1.61 crore equity shares worth Rs 1,400 crore and an Offer for Sale (OFS) of 1.91 crore shares aggregating to Rs 1,666.89 crore.


Under the OFS, BC Asia Investments XV Ltd. will offload shares worth nearly Rs 1,395 crore, while Mangalam Capital Pvt. Ltd. will sell shares valued at around Rs 272 crore.

The public issue will remain open for subscription from August 10 to August 12, 2026. The basis of allotment is expected to be finalized on August 13, while the shares are tentatively scheduled to debut on the NSE and BSE on August 17, 2026.

The IPO has been priced in the range of Rs 829 to Rs 871 per share, with a lot size of 17 shares. At the upper end of the price band, retail investors will need to invest a minimum of Rs 14,807 for one lot.

Axis Capital Ltd. is the book-running lead manager to the issue, while Kfin Technologies Ltd. has been appointed as the registrar.

Where will the IPO Proceeds Be Used?
The company plans to utilize the IPO proceeds to strengthen its balance sheet and fund future growth initiatives.

A significant portion of the net proceeds—around Rs 464.80 crore—will be used to repay or prepay certain outstanding borrowings. Additionally, nearly Rs 301.77 crore will be infused into subsidiaries, including Dhoot Autocomponents Private Limited, Dhoot Electricals Systems Private Limited, Dhoot Automotive Systems Private Limited, and Dhoot Transmission UK Limited, enabling them to reduce their debt.

The company has also earmarked Rs 150 crore to establish new wiring harness manufacturing facilities at Jhajjar, Haryana, and Shoolagiri, Hosur, Tamil Nadu, enhancing production capacity to meet rising demand. The remaining funds will support inorganic growth opportunities through acquisitions and be used for general corporate purposes.

About Dhoot Transmission
Founded in April 1998, Dhoot Transmission Ltd. is one of India's leading electrical and electronics (E&E) companies specializing in the design, engineering, manufacturing, and supply of wiring harnesses and electrical distribution systems for automotive and industrial applications.

Its diversified product portfolio includes wiring harnesses, battery packs, sensors, electronic controllers, automotive switches, terminals, connectors, and power supply cords, serving both internal combustion engine (ICE) and electric vehicle (EV) platforms.

The company ranks among the top two players in India's two-wheeler and three-wheeler wiring harness market with a 41% market share. It also dominates the electric two-wheeler and three-wheeler segment, commanding nearly 70% market share in FY26.

Beyond automotive applications, Dhoot Transmission supplies products for commercial vehicles, off-highway vehicles, agricultural equipment, and industrial applications. Notably, 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, premiumization, connected mobility, and automation.

The company has built long-standing relationships with leading automotive OEMs and has developed a diversified customer base backed by consistent operational performance. As of March 31, 2026, Dhoot Transmission employed 2,735 full-time employees across manufacturing, research & development, engineering, sales, finance, and corporate functions.

Financial Performance
Dhoot Transmission reported a robust financial performance in FY26, driven by strong revenue growth and steady profitability.

The company's total income increased 31% to Rs 4,563.70 crore in FY26 from Rs 3,472.24 crore in FY25. Meanwhile, Profit After Tax (PAT) rose 12% to Rs 396.84 crore, compared with Rs 353.89 crore in the previous financial year, reflecting sustained business momentum and healthy earnings growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)