Dhoot Transmission IPO day 3: The initial public offering (IPO) of electrical and electronics company, Dhoot Transmission, is witnessing decent buying interest. The ₹3,067 crore book build issue, which opened for public subscription on Monday, 10 August, and is to conclude on Wednesday, 12 August, has been fully subscribed.
Dhoot Transmission IPO subscription status
By the end of the second day of subscription on Tuesday, the issue had seen an overall subscription of 3.94 times. The segment reserved for non-institutional investors(NIIs) has seen the strongest subscription of 10.62 times, while that of retail investors has been subscribed to 2.97 times. Qualified institutional buyers’ (QIBs) portion has been booked 0.50 times.
Dhoot Transmission IPO GMP
Grey market continues to exhibit positive sentiment about the issue. The grey market premium (GMP) of Dhoot Transmission on Wednesday morning was ₹255, signalling the stock could list at a 29% premium to the issue price of ₹871.
Dhoot Transmission IPO details
Dhoot Transmission IPO is a book build issue, combining a fresh issue of nearly 1.61 crore shares to raise ₹1,400 crore and offer for sale of 1.91 crore shares for nearly ₹1,667 crore.
The company intends to use the net proceeds from the fresh issue of shares to pay certain borrowings availed by it and its subsidiaries, to set up a new wiring harness manufacturing plant at Jhajjar, Haryana, and at Hosur, Tamil Nadu. Some part of the net proceeds will be used for funding inorganic growth through acquisitions and general corporate purposes.
Axis Capital, Jefferies India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), SBI Capital Markets, and 360 ONE WAM are the book-running lead managers, while Kfin Technologies is the registrar of the Dhoot Transmission IPO.
The issue is concluding today (Wednesday). Share allotment will be finalised on Thursday, 13 August. Successful bidders will receive the shares credited into their demat accounts on Friday, 14 August, and those who fail to get the allotment will get the refund on the same day.
Shares of the company are proposed to list on the BSE and the NSE on Monday, 17 August.
Dhoot Transmission is a leading Indian electrical and electronics company engaged in designing, manufacturing, and supplying wiring harnesses and electrical distribution systems for automotive and industrial applications.
Dhoot Transmission IPO review
Experts largely appear positive about the issue, with most of them recommending subscribing to it for the long term.
Brokerage firm Anand Rathi has a “subscribe for long term” view on the issue, as it believes the company is well-positioned to benefit from the structural growth in India’s automotive and EV ecosystem, supported by its leadership in two-wheeler and three-wheeler wiring harnesses, including an over 70% market share in the three-wheeler segment.
“The company’s long-standing relationships with its top 5 customers, averaging around 13 years, reflect strong customer integration, engineering capabilities, and high switching costs, supporting revenue visibility,” said Anand Rathi.
“Capacity expansion at Hosur for wiring harnesses and Chakan for battery manufacturing is expected to further strengthen its capabilities and enable the company to capture emerging opportunities in EVs and automotive electronics,” Anand Rathi said.
Anand Rathi finds the issue valuation fair.
“Based on annualised FY26 earnings, the company is seeking a P/E of 44.9 times, and a post-issue market capitalisation of approximately ₹17,816.1 crore, making the issue appear to be fairly priced,” said the brokerage firm.
ICICI Direct also has assigned a “subscribe” view on the issue, citing that Dhoot Transmission comes across as a quality franchise with a long runway of growth and is a direct beneficiary of the strong premiumisation and electrification trend domestically.
“At the upper price band of ₹871, the issue is valued at nearly 45 times P/E and nearly 4 times P/S on FY26. The valuation is justified given Dhoot’s leadership in the two-wheeler and three-wheeler wiring harness market, increasing EV exposure, diversified product portfolio, long-standing OEM relationships and technology-led expansion strategy,” said ICICI Direct.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
