Auto components manufacturer Dhoot Transmission has announced its ₹3,067-crore IPO, opening for subscription on August 10. The company, backed by Bain Capital, will use the funds for debt repayment and operational expansion. Investors should note the offer includes both a fresh issue and a sale of existing shares, with a price band set at ₹829–871 per share.
Dhoot Transmission, an automotive and industrial electrical component maker, is set to enter the public market with an initial public offering (IPO) worth ₹3,066.89 crore. The subscription window for the issue will open on August 10 and conclude on August 12, 2026. The company has fixed a price band of ₹829 to ₹871 per equity share for this public offer.
IPO Structure and Shareholding
The total issue size is split between a fresh issuance of shares and an offer for sale (OFS). The company intends to raise approximately ₹1,400 crore through the issuance of 1.61 crore new equity shares, while existing shareholders will sell 1.91 crore shares to raise ₹1,666.89 crore. Bain Capital, a prominent private equity firm, currently holds a 49% stake in the business and is participating in the OFS. Following the issue, the company is expected to list its shares on the BSE and NSE on August 17, 2026.
Regarding investor quotas, the allocation is structured to provide up to 50% for qualified institutional buyers, while retail investors are eligible for at least 35%. Non-institutional investors will be allocated at least 15% of the net issue. The allotment of shares is expected to be finalized by August 13.
Financial Position and Capital Usage
According to the company's financial disclosures, it has demonstrated revenue growth, reporting ₹3,472.24 crore in revenue and ₹353.89 crore in net profit for the fiscal year 2025, compared to ₹2,799.32 crore and ₹298.75 crore, respectively, in FY24. For the nine-month period ending December 31, 2025, the firm recorded a net profit of ₹301.46 crore on revenues of ₹3,279.24 crore.
The proceeds from the fresh issue are designated for several strategic purposes, including the repayment of existing debt, funding capital expenditure for expansion, and supporting working capital requirements. As of December 31, 2025, the company reported total borrowings of ₹822.49 crore against a net worth of ₹1,277.21 crore. Investors may monitor how the reduction in debt through these funds impacts the company's interest costs and overall financial health.
Business Context and Market Position
Operating for over two decades, Dhoot Transmission produces a portfolio that includes wiring harnesses, sensors, and cables for automotive and consumer durable manufacturers. The company has developed an international presence with operations in the UK and a manufacturing facility in Slovakia through its subsidiary, TFC Cables. The key monitorable for potential investors will be the company’s ability to maintain its profit margins and market share while managing the integration of its international subsidiaries and scaling its manufacturing operations across different geographies.