Dhoot Transmission IPO Day 1: The initial public offering (IPO) of Dhoot Transmission has kicked off its primary market journey for its three-day subscription window on a decent note. The IPO is a book-built issue of Rs 3,066.89 crore.
The IPO is a combination of a fresh issue of 1.61 crore shares and an offer for sale (OFS) of 1.91 crore shares.
Dhoot Transmission IPO Subscription
As of 1:30 pm, the IPO was subscribed 0.33 times, which means that the IPO received 82,83,233 bids against 2,49,56,363 shares on offer. The subscription so far was mainly led by employees, followed by non-institutional investors. Here’s the breakdown of the IPO subscription:
- Qualified Institutional Buyers (QIBs): 0x
- Non-Institutional Investors (NIIs): 0.51x
- Retail Individual Investors (RIIs): 0.43x
- Employees: 0.83x
Dhoot Transmission IPO GMP
According to various websites tracking the unlisted market, the grey market premium (GMP) for the IPO stands at Rs 259, reflecting a listing premium of around 30 per cent. Based on this GMP, the IPO shares are estimated to list at Rs 1,130, indicating an estimated profit of Rs 4,403 on a lot of 17 shares.
Dhoot Transmission IPO Price Band and Lot Size
Dhoot Transmission has set the issue price band at Rs 829 to Rs 871 per share. The lot size for an application is 17 shares. The minimum amount of investment required by a retail investor is Rs 14,807 for one lot of 17 shares, based on the upper end of the price band.
Dhoot Transmission IPO: Usage of Issue Proceeds
As per the company’s RHP, the funds raised through the initial public offering will be used for the following purposes:
- Repayment/prepayment, in full or in part, of all or certain outstanding borrowings availed by the company.
- Investment in certain subsidiaries, namely Dhoot Autocomponents Private Limited, Dhoot Electricals Systems Private Limited, Dhoot Automotive Systems Private Limited and Dhoot Transmission UK Limited, for repayment/prepayment, in full or in part, of all or certain outstanding borrowings availed by these subsidiaries.
- Setting up new wiring harness manufacturing plants of the company at (i) Sector 11, Jhajjar, Haryana, India, and (ii) Shoolagiri, Hosur, Tamil Nadu, India.
- Funding inorganic growth through unidentified acquisitions and general corporate purposes.
Dhoot Transmission IPO Registrar and BRLM
Axis Capital Ltd. is the book-running lead manager, while Kfin Technologies Ltd. is the registrar to the issue.
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(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
