Dhoot Transmission’s initial public offering (IPO) opened for subscription on Monday, August 10, giving investors an opportunity to participate in the ₹3,066.89-crore issue. The IPO will remain open until August 12, with the company looking to raise funds for debt reduction, expansion and strategic growth.
The IPO has a price band of ₹829 to ₹871 per equity share. At the upper end of the band, the issue is valued at about ₹3,067 crore. The offering consists of a fresh issue of ₹1,400 crore and an offer for sale (OFS) of around ₹1,666.89 crore.
The company has fixed the lot size at 17 shares. Retail investors applying at the upper price band will need to invest ₹14,807 for one lot. The IPO is proposed to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Early subscription data showed a measured but positive response from investors. By around 2:39 pm on the first day, the issue had been subscribed 0.42 times overall. The retail portion was subscribed 0.55 times, while the non-institutional investor category was subscribed 0.64 times. The qualified institutional buyer portion had received comparatively limited demand at that point.
Earlier in the day, the IPO had received bids for around 24.09 lakh shares against approximately 2.49 crore shares on offer, according to exchange data. The non-institutional category had reached 16% subscription, while the retail portion stood at 12% during the morning session.
One of the biggest talking points around the Dhoot Transmission IPO has been its grey market premium, or GMP. Market trackers indicated a premium of about ₹259 per share on the first day. Against the upper IPO price of ₹871, this represented an implied premium of nearly 30%. However, GMP is an unofficial market indicator and does not guarantee the actual listing price or returns.
The company had already attracted significant institutional interest before the IPO opened. Dhoot Transmission raised ₹918.3 crore from anchor investors, with more than 10.5 million shares allotted to 72 funds at ₹871 apiece.
The anchor book included several large global and domestic investors, including BlackRock, Abu Dhabi Investment Authority and SBI Mutual Fund. Domestic mutual funds accounted for the largest share of the anchor allocation, with eight fund houses investing through 46 schemes and receiving about 61% of the anchor shares.
Dhoot Transmission operates in the automotive components and electrical systems space. Its product portfolio includes wiring harnesses, battery packs, sensors, electronic controllers, automotive switches, connectors, terminals and power supply cords.
The company supplies components for a wide range of vehicles and equipment, including two-wheelers, three-wheelers, commercial vehicles, off-road vehicles and agricultural equipment. It also has exposure to electric vehicle platforms, making its business relevant to the growing shift towards vehicle electrification.
According to the company’s disclosures, Dhoot Transmission is among the leading players in India‘s two-wheeler and three-wheeler wiring harness market. It has reported a market share of about 41% in that segment and nearly 70% in electric two-wheeler and three-wheeler wiring harnesses in FY26.
The funds raised through the fresh issue are planned to be used for several purposes. These include repayment or prepayment of certain borrowings, investment in subsidiaries for debt repayment and the establishment of new wiring harness manufacturing facilities in Jhajjar, Haryana, and Hosur, Tamil Nadu.
The company also plans to allocate part of the proceeds towards potential inorganic acquisitions and other strategic initiatives. The expansion is expected to increase manufacturing capacity and support Dhoot Transmission’s plans to participate in the growing automotive and electric vehicle components market.
The IPO also comes as investors closely watch the valuation of the auto component maker. The upper price band implies a valuation based on its earnings that some analysts consider reasonable, although customer concentration and the execution of expansion projects remain risks that investors need to consider.
Dhoot Transmission was founded in 1999 and is headquartered in Maharashtra. Over the years, it has expanded beyond traditional automotive wiring products into electronic and electrical components used across automotive and non-automotive applications.
The IPO allotment is expected to be finalised on August 13. Refunds and share credits are expected to follow on August 14, while the shares are scheduled to make their market debut on August 17.
For investors, the Dhoot Transmission IPO offers exposure to the automotive components industry at a time when demand for vehicle electronics, wiring systems and EV components is increasing. At the same time, the response over the remaining bidding days will be important in determining the final level of demand.
The strong grey-market premium has created optimism around the issue, but investors will need to distinguish between unofficial market sentiment and the company’s underlying financial performance. The final subscription figures, institutional participation and listing-day demand will provide a clearer picture of how the market values Dhoot Transmission once the IPO closes.