Dhoot Transmission share price made a blockbuster debut on the bourses today, Monday, 17 August. On NSE, Dhoot Transmission share price opened at ₹1,200 per share, 37.77% higher than the issue price of ₹871. On BSE, the stock opened at ₹1,193.80 apiece, up 37.06% than the issue price.
The Dhoot Transmission IPO received a strong response from investors, with the initial public offering of the auto components maker subscribed 74.21 times on the last day of bidding on Wednesday.
The ₹3,067-crore IPO received bids for 1,85,19,71,585 shares against 2,49,56,363 shares on offer, according to NSE data.
The Qualified Institutional Buyers (QIBs) category was subscribed 212.92 times, while the portion reserved for non-institutional investors (NIIs) received 51.93 times subscription. The retail investors quota was subscribed 8.12 times.
Ahead of the issue, Dhoot Transmission raised ₹918.3 crore from anchor investors, including BlackRock, Abu Dhabi Investment Authority and SBI Mutual Funds.
The Dhoot Transmission IPO price band was fixed at ₹829– ₹871 per share.
Dhoot Transmission IPO GMP today
Dhoot Transmission IPO GMP today is +258. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Dhoot Transmission share was ₹1,129 apiece, which is 29.62% higher than the IPO price of ₹871.
Considering the grey market performance over the past 15 sessions, the IPO’s GMP is showing an upward trend today, suggesting predictions of a robust listing. Throughout this timeframe, the GMP fluctuated between ₹146.00 and ₹276, according to expert analysis.
Dhoot Transmission IPO details
The Dhoot Transmission IPO comprises a fresh issue of equity shares worth up to ₹1,400 crore and an offer for sale (OFS) of up to 1.91 crore equity shares by promoters BC Asia Investments XV Ltd, an entity backed by private equity firm Bain Capital, and Mangalam Capital Private Ltd.
The company plans to use the fresh issue proceeds to repay or prepay certain borrowings, invest in subsidiaries to repay debt, and establish new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion of the funds will also be allocated towards inorganic acquisitions and other strategic initiatives.
At the upper end of the price band, Dhoot Transmission is expected to have a post-issue market capitalisation of around ₹17,816 crore, compared with approximately ₹17,025 crore at the lower end.
Axis Capital Ltd. is the book-running lead manager, while KFin Technologies Ltd. is the registrar to the issue.
Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.
Its products serve multiple industries and vehicle segments, including two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers, farm equipment, medical devices and domestic appliances.
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