3 weeks ago
Dhoot Transmission IPO opens; analysts back long-term EV growth
Dhoot Transmission makes wiring harnesses — the bundles of wires that connect electrical parts in vehicles — for motorcycles, three-wheelers, cars and farm equipment.
The company wants to raise money by selling part of itself to the public, which is called an IPO.
The IPO opened on August 10 and will close on August 12.
People can buy shares at a price between ₹829 and ₹871 each.
Big investors like SBI Mutual Fund and BlackRock have already bought shares worth around ₹918 crore.
Some market watchers think the shares might be worth nearly 30% more when they start trading, but nobody can promise that.
The company is especially strong in parts for electric two- and three-wheelers, which are becoming more popular.
Its profit grew by about 12% last year, and analysts say it could be a good long-term investment.
The shares are expected to start trading on the stock exchange on August 17.
Dhoot Transmission's ₹3,066.89 crore IPO opened for subscription on August 10 and closes on August 12, with a price band of ₹829-871 per share.
The company raised ₹918.27 crore by allotting 1.05 crore equity shares to 72 anchor investors, including SBI Mutual Fund, BlackRock and the Abu Dhabi Investment Authority.
A grey market premium of around ₹259 (about 29%) hints at possible listing gains of nearly 30%, though GMP is unofficial and can change before listing.
The issue comprises a fresh issue of ₹1,400 crore and an offer for sale of around 1.9 crore shares by existing shareholders, including Bain Capital, which holds about 55% of the company.
Anand Rathi rated the IPO 'Subscribe for Long Term' while SBI Securities flagged the company's EV-led growth, with nearly 70% share in electric two- and three-wheelers and FY26 profit up 12.1% to ₹396.8 crore.
- Who
- Dhoot Transmission, a Bain Capital-backed automotive wiring harness manufacturer founded in 1999
- What
- Launched its initial public offering (IPO) expected to raise up to ₹3,066.89 crore
- Where
- Indian stock exchanges; the company also has manufacturing facilities across India, the UK, Slovakia, Thailand, Japan and South Korea
- When
- Subscription runs from August 10 to August 12; allotment basis on August 13; listing on August 17
- Why
- To raise funds through a fresh issue of ₹1,400 crore and allow existing shareholders, including Bain Capital, to sell shares through the offer for sale
Optimistic analysts
Cautious investors
Valuation
Optimistic analysts
The issue appears fairly priced at a P/E of 44.9 times annualised FY26 earnings, given market leadership and long-term EV growth prospects.
Cautious investors
The valuation of 42.7-44.9 times FY26 earnings is rich and requires sustained strong growth to be justified.
Growth and concentration
Optimistic analysts
Long-standing relationships averaging around 13 years with top five customers provide strong revenue visibility, while capacity expansion at Hosur and Chakan will capture EV opportunities.
Cautious investors
High customer concentration and execution risks related to expansion projects remain key concerns for investors.
Key facts
- IPO size
- ₹3,066.89 crore (at upper end of price band)
- Price band
- ₹829-871 per share
- Subscription dates
- August 10-12; shares to list on August 17
- Anchor investment
- ₹918.27 crore from 72 anchor investors
- Post-issue market capitalisation
- Around ₹17,816 crore
- Issue structure
- Fresh issue of ₹1,400 crore plus offer for sale of around 1.9 crore shares
- Bain Capital stake
- Around 55%; rest held by the Dhoot family
- FY26 financials
- Profit ₹396.8 crore (+12.1% YoY); revenue ₹4,525 crore (+31.4% YoY)
Quotes
Abhishek Bhilwaria
Partner at BhilwariaFinserv
“"As a critical component supplier deeply integrated into India's expanding electric vehicle supply chain, the company offers a compelling mix of short‑term momentum and long‑term structural upside."”
NDTV
“"Dhoot Transmission's public issue arrives with strong backing from global investors and a robust grey market premium signaling nearly 30% listing gains."”
NDTV
Sources
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