Dhoot Transmission Ltd, a prominent manufacturer of wiring harnesses and a company backed by Bain Capital, has filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). The proposed initial public offering (IPO) is structured to aggregate up to ₹1,400 crore.
IPO Structure and Fund Utilization
The IPO comprises a fresh issue of equity shares alongside an offer for sale (OFS) of up to 1,63,10,733 equity shares. Each share carries a face value of ₹2. The OFS portion involves sales by the promoter and promoter group selling shareholders.
BC Asia Investments XV Limited, which holds a 49% stake in Dhoot Transmission, plans to offload up to 1,31,91,900 shares. Additionally, Mangalam Capital Private Limited is offering 31,18,833 equity shares.
Dhoot Transmission intends to utilize a significant portion of the IPO proceeds for strategic financial initiatives. Approximately ₹493.9 crore is allocated for the repayment or prepayment of its outstanding borrowings. An additional ₹272.58 crore is earmarked for its subsidiaries, Dhoot Auto Components and Dhoot Transmission UK, to clear their respective debts.
The company also plans to invest ₹150 crore in expanding its manufacturing capabilities by setting up new plants in Jhajjar, Haryana, and Shoolagiri, Tamil Nadu. The remaining funds are slated for potential acquisitions and general corporate purposes.
Company Profile and Financial Performance
Founded in 1999, Dhoot Transmission specializes in designing and manufacturing critical wiring harnesses. The company holds a significant market share by value in India's two-wheeler and three-wheeler wiring harness market for the fiscal year 2025.
According to the updated draft prospectus, the company has demonstrated robust financial growth. Revenue from operations surged by 62%, climbing from ₹2,125.86 crore in FY23 to ₹3,444.86 crore in FY25. Wiring harnesses remain the primary revenue driver, contributing 78% (₹2,687 crore) to the FY25 topline, with domestic sales accounting for approximately 90% of overall revenue.
Profit after tax (PAT) more than doubled over the same period, increasing from ₹163.91 crore to ₹353.89 crore.
Lead Managers for the Issue
The book-running lead managers appointed to handle the Dhoot Transmission IPO include Axis Capital Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, and 360 ONE WAM Limited.