Dhoot Transmission is set to launch its ₹3,066.89 crore IPO on August 10, 2026, with a price band of ₹829–₹871 per share. The issue includes a fresh share sale to fund debt repayment and expansion, alongside an exit by existing investors. The company is betting on the electric vehicle (EV) transition to drive future growth.
Dhoot Transmission, an automotive component manufacturer, is set to launch its initial public offering (IPO) on August 10, 2026. The company, which is backed by the private equity firm Bain Capital, aims to raise ₹3,066.89 crore through this public issue. Investors can subscribe to the shares until August 12, 2026.
The price band for the IPO is set between ₹829 and ₹871 per equity share. The total issue consists of a fresh issuance of shares worth ₹1,400 crore, which the company intends to use to repay debt and expand its manufacturing capacity. The remaining portion of ₹1,666.89 crore is an Offer for Sale (OFS), where existing investors, primarily Bain Capital, will sell their stakes in the company.
Business Pivot to EV Components
Based in Chhatrapati Sambhajinagar, Dhoot Transmission specializes in producing wiring harnesses for automotive and industrial clients. A core part of the company's growth strategy involves moving beyond its traditional business to focus on the electric vehicle (EV) market. The company is actively developing an expanded portfolio that includes EV-specific components such as battery assemblies, sensors, electronic controllers, and onboard chargers. This shift is already showing in their financial results, with EV-related revenue contributing 24.18% to the total turnover in fiscal year 2026.
In fiscal year 2026, the company reported a total revenue of ₹4,563.70 crore and a net profit of ₹396.84 crore. The business is heavily linked to the growth of two-wheeler and three-wheeler electric vehicles in India, with key customers including companies like Bajaj Auto.
Risks and Considerations
When evaluating the company, it is useful to look at both the opportunities and the risks involved. The company’s growth plan depends significantly on the continued adoption of electric two-wheelers and three-wheelers in the Indian market. Any slowdown in demand for these vehicles could directly impact the company’s revenue. Additionally, the company is investing in new manufacturing lines for its EV components, which comes with the challenge of successfully scaling these products to meet the quality and volume requirements of large automotive customers.
From the IPO structure perspective, the offer includes a large sale of shares by current investors. This indicates that a significant portion of the money raised will go to the existing backers rather than directly to the company’s business operations. The shares are tentatively scheduled to list on the BSE and NSE on August 17, 2026. The final impact of the IPO on the company’s financial position will depend on how effectively it uses the fresh funds to reduce debt and whether it can maintain its profit margins while scaling new product lines.