Shares of Dhoot Transmission Ltd. will be in focus on Wednesday, November 11, as the three-month shareholder lock-in period for a portion of its shares expires today.
According to Nuvama Alternative & Quantitative Research, around 5.3 million shares of Dhoot Transmission, representing 3% of the company’s outstanding equity, will become eligible for trading following the expiry of the lock-in period.
Based on Monday’s closing price, these shares are valued at approximately ₹862 crore.
However, the expiry of the lock-in period does not necessarily mean that all eligible shares will be sold in the open market. It only makes them eligible for trading.
How Was Dhoot Transmissions’ IPO?
The initial public offering (IPO) of Bain Capital-backed automotive wiring harness manufacturer Dhoot Transmission was open for subscription from August 10 to August 12.
The issue was subscribed 74.21 times, receiving bids for 185.20 crore equity shares against 2.50 crore shares on offer. Qualified institutional buyers (QIBs) led the demand, with their portion subscribed 212.92 times. The non-institutional investor (NII) category was subscribed 51.93 times, while the retail portion was subscribed 8.12 times.
Dhoot Transmission’s IPO comprised 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.
The company has earmarked funds to establish new wiring harness manufacturing facilities at Jhajjar in Haryana and Shoolagiri in Tamil Nadu. The remaining proceeds will be utilised for potential acquisitions and other strategic initiatives.
About Dhoot Transmission
Founded in 1999, Dhoot Transmission manufactures wiring harnesses, electronic sensors, automotive switches, cords, cables and EV components. Its products cater to two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles and farm equipment across internal combustion engine (ICE) and electric vehicle (EV) segments.
The company operates manufacturing facilities across India, the UK, Slovakia, Thailand, Japan and South Korea.
As of Monday’s close, Dhoot Transmission shares were up 87% from their IPO price of ₹871 per share. The stock had corrected around 6% from its post-listing high.
Outperforming Dhoot Transmission shares worth over ₹850 crore free up today as lock-in ends