Dhoot Transmission secured ₹918 crore from 72 anchor investors ahead of its ₹3,067 crore IPO. The offering opens for public subscription on August 10 and closes August 12, with proceeds earmarked for debt repayment and capacity expansion in Haryana and Tamil Nadu.
Automotive component manufacturer Dhoot Transmission has successfully raised ₹918.27 crore from institutional investors as part of its anchor book allotment. The company allotted 1.05 crore shares at ₹871 per share, which is the upper end of its price band. Key global and domestic names such as BlackRock, Abu Dhabi Investment Authority, and several mutual fund houses participated in this round.
The initial public offering (IPO) is scheduled to open for public subscription from August 10 to August 12, 2026. The issue consists of a fresh equity share sale of ₹1,400 crore and an offer for sale (OFS) of up to 1.91 crore shares by existing shareholders, including entities backed by Bain Capital. Investors may note that the price band for the IPO has been fixed between ₹829 and ₹871 per share.
A significant portion of the capital raised through the fresh issue is intended for the repayment and prepayment of the company's existing debt. For investors, the level of debt and the impact of these repayments on interest costs are key areas to analyze, as they directly influence the company’s profit margins. Additionally, the company plans to use a portion of the funds to set up new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. Expanding capacity is a strategic move to serve customers across the two-wheeler, three-wheeler, and commercial vehicle segments, though it introduces execution risks related to project timelines and cost management.
Since its founding in 1999, the Aurangabad-based company has grown its product portfolio to include electronic sensors, controllers, and various automotive cabling systems. While the business benefits from demand in the auto sector, it also faces challenges common to the industry, such as competition and the need for continuous technology adoption to meet the requirements of electric vehicle manufacturers.
The final listing of the shares is tentatively scheduled for August 17, 2026, on both the NSE and BSE. Before subscribing, investors typically monitor the company’s ability to execute its expansion plans without significant delays and its progress in reducing its debt burden, which will be important indicators for future financial stability.