Dhoot Transmission makes strong debut at 38% premium. Should investors hold or buy on dips?

Dhoot Transmission made a strong Dalal Street debut on Monday, with shares listing at a 38% premium to the IPO price. The stock opened at Rs 1,193.80 on the BSE and Rs 1,200 on the NSE, compared with its issue price of Rs 871. The listing also comfortably beat the stock’s grey market premium (GMP), which had indicated gains of around 30%.

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 exposure to the electric vehicle (EV) segment. However, investors should also keep an eye on customer concentration and execution-related risks.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., said Dhoot Transmission delivered a strong listing, gaining nearly 38% over its issue price. She 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.


“Dhoot Transmission: Dhoot Transmission delivered a strong listing, gaining nearly 38% over its issue price. The company’s strong revenue growth, established position in wiring harnesses and increasing exposure to the EV segment provide a healthy long-term growth outlook. However, elevated customer concentration and execution risks warrant monitoring. We maintain a positive long-term view and recommend holding with a stop-loss of Rs 1,100,” Nyati said.

The Dhoot Transmission IPO received an overwhelming response during its subscription period from August 10 to August 12, with the issue subscribed 74.21 times overall. The retail portion was subscribed 8.12 times, while institutional investors displayed particularly strong appetite. The QIB category was subscribed a staggering 212.92 times, while the NII segment was subscribed 51.93 times. The public issue comprised a fresh issue of 1.61 crore shares worth Rs 1,400 crore and an offer for sale (OFS) of 1.91 crore shares aggregating to Rs 1,666.89 crore.

How Will Dhoot Transmission Use the IPO Proceeds?

The company plans to deploy the IPO proceeds towards strengthening its balance sheet, reducing debt and funding future expansion. Around Rs 464.80 crore of the net proceeds will be used to repay or prepay certain outstanding borrowings. Another 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. These funds are expected to help the subsidiaries reduce their debt burden.

Dhoot Transmission has also earmarked Rs 150 crore for setting up new wiring harness manufacturing facilities at Jhajjar in Haryana and Shoolagiri in Hosur, Tamil Nadu. The new facilities are aimed at expanding production capacity to cater to growing demand. The remaining proceeds will be used to pursue inorganic growth opportunities, including acquisitions, as well as for general corporate purposes.

About Dhoot Transmission

Founded in April 1998, Dhoot Transmission is a major player in India’s electrical and electronics (E&E) automotive ecosystem. The company designs, engineers, manufactures and supplies wiring harnesses and electrical distribution systems for automotive and industrial applications.

Its product portfolio spans wiring harnesses, battery packs, sensors, electronic controllers, automotive switches, terminals, connectors and power supply cords. Importantly, its products cater to both internal combustion engine (ICE) and electric vehicle (EV) platforms.

Dhoot Transmission ranks among the top two players in India’s two-wheeler and three-wheeler wiring harness market, with a 41% market share. Its position is even stronger in electric two-wheelers and three-wheelers, where it commands nearly 70% market share in FY26. The company also serves commercial vehicles, off-highway vehicles, agricultural equipment and industrial applications.

One of its key strengths is its positioning for the transition towards electric mobility. Around 95% of its automotive product portfolio is either EV-focused or powertrain-neutral, potentially positioning the company to benefit from long-term trends such as vehicle electrification, premiumisation, connected mobility and automation.

As of March 31, 2026, the company had 2,735 full-time employees across manufacturing, research and development, engineering, sales, finance and corporate functions.

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