The initial public offering (IPO) of Pune-based Dhoot Transmission, a prominent manufacturer of wiring harnesses and electrical distribution systems, opened for subscription today, August 10, 2026. The issue aims to raise Rs 3,067 crore and will close on Wednesday, August 12.
Key IPO Details
- Price Band: Shares are offered in the range of Rs 829-871 apiece.
- Minimum Application: Investors can apply for a minimum of 17 equity shares and in multiples thereafter.
- Issue Size: The total IPO size is Rs 3,067 crore, comprising a fresh issue of Rs 1,100 crore and an offer-for-sale (OFS) of up to 1.91 crore equity shares worth Rs 1,667 crore.
- Purpose of Fresh Issue: Proceeds from the fresh issue will be utilized for debt repayment, investments in select subsidiaries, establishing a new wiring harness manufacturing plant, and general corporate purposes.
- Anchor Investors: Ahead of the public offer, Dhoot Transmission secured Rs 918.27 crore from 72 anchor investors, allocating 1,05,42,657 equity shares at Rs 871 each. Notable anchor investors included SBI MF, ICICI Prudential AMC, HDFC MF, Axis MF, Abu Dhabi Investment Authority, and Mirae Asset MF.
- Listing: The shares are expected to list on both BSE and NSE on August 17, 2026.
Company Overview and Financial Performance
Incorporated in April 1998, Dhoot Transmission specializes in the design, engineering, manufacturing, and supply of wiring harnesses and electrical distribution systems for both automotive and non-automotive applications. The company boasts a diversified product portfolio and is recognized as a leading electrical and electronics player in India.
Financially, Dhoot Transmission reported a net profit of Rs 396.84 crore on a revenue of Rs 4,563.70 crore for the financial year ended March 31, 2026. This marks a significant increase from the previous fiscal year (FY2024-25), where the company posted a net profit of Rs 353.89 crore against a revenue of Rs 3,472.24 crore. At current valuations, the company commands a market capitalization of approximately Rs 17,816.14 crore.
IPO Allocation and Grey Market Premium (GMP)
The IPO allocation reserves 50 percent of the net offer for qualified institutional bidders (QIBs), 15 percent for non-institutional investors (NIIs), and 35 percent for retail investors.
The grey market premium (GMP) for Dhoot Transmission shares was reportedly in the range of Rs 250-260 apiece, indicating a potential listing gain of 29-30 percent for investors.
Analyst Recommendations
Several brokerage firms have issued 'Subscribe' ratings for the Dhoot Transmission IPO, citing various positive factors:
- ICICIDirect Research: Recommended 'Subscribe', highlighting Dhoot's position as a global Tier-I automotive component supplier, strong premiumisation and electrification trends, and leadership in the 2W & 3W wiring harness market.
- Anand Rathi Share & Stock Brokers: Advised 'Subscribe for long-term', emphasizing the company's strong positioning to benefit from structural growth in India’s automotive and EV ecosystem, along with robust customer relationships.
- Choice Institutional Equities: Rated 'Subscribe', noting Dhoot's clear leadership in 2W and 3W wiring harnesses (41.03% combined market share in FY26) and its dominant share in the electric 2W/3W segments. They also pointed out the company's superior revenue and PAT CAGR compared to peers.
- Swastika Investmart: Recommended 'Subscribe for long-term', acknowledging the company's faster revenue growth, dominant position in the EV segment, and potential listing gains, while advising disciplined position sizing due to fair valuation.
- Marwadi Financial Services: Assigned a 'Subscribe' rating based on Dhoot's leadership in the 2W and 3W wiring harness market, marquee customer base, and reasonable valuation.
- BP Equities: Rated 'Subscribe', considering the company's market leadership, established customer relationships, healthy financial performance, and favorable industry outlook.
- Ventura Securities: Advised 'Subscribe', praising Dhoot's strong growth in FY26, global manufacturing footprint, and focus on premiumisation and electrification.
- Sushil Finance: Recommended 'Subscribe', citing the company's category leadership and strong position to benefit from India's 2W electrification curve.
Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory (India), SBI Capital, and 360 One WAM are the book running lead managers for the issue, with Kfin Technologies serving as the registrar.