Ahead of the issue opening, Dhoot Transmission has allotted 1.05 crore equity shares to 72 anchor investors and raised ₹918.27 crore.
The anchor book saw participation from several marquee domestic and global investors, including SBI Mutual Fund, ICICI Prudential MF, HDFC MF, BlackRock, WhiteOak, Abu Dhabi Investment Authority, Axis MF, Mirae Asset, Nippon India MF, Government Pension Fund, Pictet, Amundi Funds, Allianz Global Investors, Franklin Templeton, Tata MF, Invesco, Canara Robeco, UTI MF, PGIM India MF, HSBC MF, Sundaram MF, SBI Life Insurance, HDFC Life Insurance, ICICI Prudential Life Insurance, Axis Max Life Insurance, Motilal Oswal MF, Bandhan MF, Edelweiss MF and 3P India Equity Fund, among others.
Dhoot Transmission IPO: Should you apply?
SBI Securities: Not rated
SBI Securities said Dhoot Transmission is one of the leading auto component manufacturers in the two-wheeler and three-wheeler segments, with around 95% of its automotive product portfolio focused on EV or powertrain-neutral architectures. This puts the company in a strong position to benefit from the long-term electrification trend in the automotive industry.
The brokerage also highlighted the company’s extensive product portfolio, which is driving a sustained increase in kit value per vehicle, particularly through its presence in the premium two-wheeler segment.
At the upper end of the IPO price band, Dhoot Transmission is valued at 42.7 times FY26 earnings and 22.7 times EV/EBITDA.
SBI Securities believes Dhoot Transmission could be a key beneficiary of accelerating EV adoption and increasing platform complexity, which could support growth in kit value and the company’s share of the bill of materials.
Anand Rathi: Subscribe for long term
Anand Rathi said Dhoot Transmission is well positioned to benefit from the structural growth of India’s automotive and EV ecosystem, supported by its leadership in two-wheeler and three-wheeler wiring harnesses. The company has a market share of more than 70% in the three-wheeler segment.
The brokerage expects the company to benefit from rising EV penetration, premiumisation and increasing wiring harness content per vehicle.
Dhoot Transmission’s long-standing relationships with its top five customers, averaging around 13 years, reflect strong customer integration, engineering capabilities and high switching costs, providing greater revenue visibility, Anand Rathi said.
The brokerage also highlighted capacity expansion at Hosur for wiring harnesses and Chakan for battery manufacturing, which is expected to strengthen the company’s capabilities and help it capture opportunities emerging from EVs and automotive electronics.
Based on annualised FY26 earnings, the company is seeking a P/E multiple of 44.9 times, while its post-issue market capitalisation is estimated at around ₹17,816 crore. Anand Rathi said the issue appears fairly priced, although high customer concentration and execution risks related to expansion projects remain key concerns.
Overall, the brokerage believes Dhoot Transmission’s market leadership, long-standing OEM relationships, expanding manufacturing capacity and increasing exposure to EV components position it favourably for long-term growth. It has assigned a ‘Subscribe for Long Term’ rating to the IPO.
Dhoot Transmission IPO price band, GMP
Dhoot Transmission has fixed the IPO price band at ₹829-871 per equity share. Investors can bid for a minimum of 17 shares and in multiples thereof.
According to market observers, the shares were commanding a grey market premium (GMP) of around 29% ahead of the IPO.
At the upper end of the price band, the IPO is expected to raise ₹3,066.89 crore. The issue comprises a fresh issue of equity shares worth ₹1,400 crore and an offer for sale (OFS) of around 1.9 crore shares by existing shareholders, including Bain Capital.
Bain Capital currently holds around 55% in the company, while the remaining stake is held by the Dhoot family.
At the upper end of the price band, Dhoot Transmission is expected to command a market capitalisation of ₹17,816.14 crore upon listing.
Of the total issue size, 50% has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail investors.
About Dhoot Transmission
Founded in 1999, Dhoot Transmission manufactures wiring harnesses, electronic sensors, automotive switches, cords, cables and EV components for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles and farm equipment across both internal combustion engine (ICE) and electric vehicle (EV) segments.
The company operates manufacturing facilities across India, the UK, Slovakia, Thailand, Japan and South Korea.
For FY26, Dhoot Transmission reported a 12.1% year-on-year increase in profit to ₹396.8 crore, while revenue rose 31.4% to ₹4,525 crore.
Axis Capital, Jefferies, Kotak Mahindra Capital, Nomura, SBI Capital Markets and 360 ONE WAM are the book-running lead managers to the issue.
The basis of allotment is expected to be finalised on August 13, while the company’s shares are scheduled to list on the stock exchanges on August 17.
