Dhoot Transmission, Molbio Diagnostics IPOs See Over 70 Times Subscription

When a company wants money to grow, it can sell small pieces of itself, called shares, to the public for the first time — this is called an IPO.

Two Indian companies, Dhoot Transmission and Molbio Diagnostics, are doing exactly this.

Investors were very excited and asked for more than 70 times the shares that were available in each IPO.

Dhoot Transmission is a company based in Maharashtra that makes wiring harnesses, which are bundles of wires.

Molbio Diagnostics is a company based in Goa that makes quick medical tests for use right where patients are cared for, called point-of-care diagnostics.

The companies plan to use the money to pay back loans and build new factories and research facilities.

Some of the world's biggest investors, like BlackRock and Temasek, have already given the companies money.

Once an IPO ends, people can buy and sell the shares on a stock exchange.

On August 17, shares of both companies will begin trading on India's two main stock exchanges, the BSE and the NSE.