Dhoot Transmission's initial public offering (IPO) has garnered significant interest from investors, with the issue subscribed 63% on its first day. The IPO, which opened for subscription on August 10, 2026, offers 2.49 crore shares and has seen strong demand from retail investors, with their portion subscribed 74%.
The IPO comprises a fresh issue of 1.61 crore equity shares worth Rs 1,400 crore and an Offer for Sale (OFS) of 1.91 crore shares aggregating Rs 1,666.89 crore. The price band is set at Rs 829-Rs 871 per share, with a minimum investment of Rs 14,807 for retail investors. The issue will close on August 12, 2026, with shares expected to list on the NSE and BSE on August 17, 2026.
The grey market premium (GMP) for Dhoot Transmission's IPO is around Rs 259, suggesting a potential 30% premium over the upper price band. This indicates a possible listing price of Rs 1,130 per share. However, investors should note that GMP is an unofficial indicator and may not reflect the actual listing price.
Dhoot Transmission plans to use the IPO proceeds to strengthen its balance sheet, repay debts, and fund growth initiatives. Approximately Rs 464.80 crore will be used to repay borrowings, while Rs 301.77 crore will be infused into subsidiaries. Additionally, Rs 150 crore is earmarked for new manufacturing facilities.
Founded in April 1998, Dhoot Transmission is a leading player in India's electrical and electronics sector, specializing in wiring harnesses and electrical distribution systems. The company holds a 41% market share in India's two-wheeler and three-wheeler wiring harness market and dominates the electric segment with a 70% share.
Background
Dhoot Transmission's IPO comes amid a robust financial performance in FY26, with a 31% increase in total income to Rs 4,563.70 crore and a 12% rise in Profit After Tax to Rs 396.84 crore. The company's focus on electrification and premiumisation aligns with global trends towards vehicle electrification and automation.
Looking ahead, Dhoot Transmission's market leadership and strategic focus on electrification and premiumisation position it well for long-term growth. Investors should watch for the final subscription figures and the listing performance on August 17, 2026.
