Dhoot Transmission's ₹3,067 crore IPO will open for subscription from August 10 to August 12, 2026, with a price band set between ₹829 and ₹871 per share. The company, a key player in the automotive wiring harness market, plans to use the funds to reduce debt and expand capacity. Investors may evaluate the company’s strong EV segment presence alongside the valuation compared to industry peers.
Automotive wiring harness manufacturer Dhoot Transmission is set to launch its initial public offering (IPO) on August 10, 2026. The issue will remain open for subscription until August 12, 2026, with a price band fixed at ₹829 to ₹871 per equity share. The total issue size stands at approximately ₹3,067 crore, drawing attention from investors tracking the electric vehicle (EV) component supply chain in India.
The offering consists of a fresh issue of shares worth ₹1,400 crore and an offer for sale (OFS) of ₹1,667 crore. A significant portion of the money raised through the fresh issue—₹767 crore—is earmarked for debt repayment, which is expected to improve the company's balance sheet health. Another ₹150 crore is allocated for expanding production capacity, with the remainder designated for general corporate purposes and potential strategic acquisitions.
Dhoot Transmission maintains a strong market position, particularly in the two-wheeler and three-wheeler segments, where it supplies wiring harnesses. The company has a notable footprint in the EV market, with approximately 24% of its current revenue generated from electric vehicle applications. As India’s electric two-wheeler and three-wheeler fleet grows, the company is positioning itself to capture demand, as EVs typically require more complex wiring and sensor systems compared to traditional internal combustion engine vehicles.
At the upper end of the price band, Dhoot Transmission is valued at a market capitalization of ₹17,816 crore, reflecting a price-to-earnings (P/E) multiple of roughly 43 times its fiscal year 2026 earnings. Investors will be weighing this valuation against established peers like Motherson Sumi Wiring and Minda Corporation. While Dhoot has reported healthy profit margins—historically between 15% and 17%—the current valuation places it in a similar range to these competitors, making its future growth prospects and ability to scale a key point of analysis.
Investors should consider the risks inherent in the automotive component business. The company has a high dependency on the cyclical automotive sector; any slowdown in vehicle production or consumer demand for two-wheelers can directly impact financial performance. Furthermore, the business is sensitive to raw material price volatility, which can exert pressure on profit margins. The company also faces standard execution risks as it scales its operations and integrates new technologies, such as advanced driver-assistance systems, into its product mix.
The shares are tentatively scheduled to list on the BSE and NSE on August 17, 2026. The key monitorable for shareholders will be how the company manages its debt reduction and whether it can maintain its market share against competitive pressure while delivering on its expansion plans.