Dhoot Transmission's ₹3,067 crore IPO opened today, with 72 anchor investors committing ₹918.27 crore at the upper price band of ₹871 per share. The auto components manufacturer will use the funds to lower debt and expand capacity. The issue remains open until August 12, with shares expected to list on August 17.
Dhoot Transmission, a prominent player in the auto components sector, has kicked off its initial public offering (IPO) today, August 10, 2026. Ahead of the public subscription, the company successfully raised ₹918.27 crore from 72 anchor investors. These institutions were allocated shares at ₹871 apiece, which is the upper end of the ₹829 to ₹871 price band.
The IPO, which seeks to raise a total of ₹3,066.89 crore, consists of a fresh issue of shares worth ₹1,400 crore and an offer for sale of existing shares worth ₹1,666.89 crore. Domestic mutual funds were the primary participants in the anchor round, taking up over 60% of the allocation, while insurance companies and pension funds also participated. The subscription window for retail and other investors is open until August 12, 2026.
The company is using the funds raised from the fresh issue to repay existing debt, invest in its subsidiaries, and expand its manufacturing facilities in Jhajjar and Hosur. These expansions are aimed at increasing production capacity for its automotive and industrial electrical components, such as wiring harnesses and switches, which are supplied to major vehicle manufacturers.
Financially, the company has shown growth, reporting a revenue of ₹4,524.96 crore and a net profit of ₹396.84 crore for the financial year 2026. Its operating margin stood at approximately 15.71%. Bain Capital currently holds a 49% stake in the firm, reflecting the involvement of major private equity backing.
While the company has an established presence, investors should be aware of specific business risks. A significant portion of the company’s revenue—over 80%—comes from its top 10 customers. This high customer concentration means that losing a major client or a reduction in orders from these key players could impact the company's revenue. Additionally, the business is closely tied to the automotive industry, which is cyclical. This means the company’s performance often depends on overall vehicle sales trends. Other factors such as the volatility of raw material prices like copper and plastics, as well as foreign exchange fluctuations, can also put pressure on profit margins.
Retail investors can bid for a minimum of 17 shares, requiring an investment of ₹14,807 per lot. Following the close of the subscription period on August 12, the company is expected to finalize the share allotment by August 13. Investors can monitor the progress of the IPO and the eventual listing, which is tentatively scheduled for August 17, 2026, on the BSE and NSE.