Whalesbook
Bain Capital-backed Dhoot Transmission Ltd. has submitted updated draft papers to the Securities and Exchange Board of India (Sebi) for its initial public offering. The proposed IPO aims to raise up to ₹1,400 crore through a fresh issuance of shares, complemented by an offer for sale (OFS) of over 1.63 crore equity shares.
The OFS portion includes the sale of approximately 1.31 crore equity shares by promoter shareholder BC Asia Investments XV Ltd. and 31.18 lakh shares by Mangalam Capital Private Ltd. The company intends to allocate a significant portion of the net proceeds towards the repayment and prepayment of outstanding borrowings. Specifically, ₹493.9 crore is earmarked for debt reduction at the parent company, with an additional ₹272.58 crore designated for subsidiaries to clear their respective debts. These subsidiaries include Dhoot Auto Components Private Ltd, Dhoot Electricals Systems Private Ltd, Dhoot Automotive Systems Private Ltd, and Dhoot Transmission UK Ltd.
Furthermore, Dhoot Transmission plans to invest ₹150 crore in establishing new wiring harness manufacturing facilities in Jhajjar, Haryana, and Shoolagiri, Tamil Nadu. The remaining funds are reserved for unspecified acquisitions and general corporate purposes, with deployment expected between fiscal years 2027 and 2028.
Established in 1999, Dhoot Transmission specializes in the design, engineering, and manufacturing of automotive wiring harnesses and electrical components. A Bain Capital affiliate, BC Asia Investments XV, acquired a 49% stake in the company in April 2025. The company holds a dominant position in India's two-wheeler and three-wheeler wiring harness market, boasting a 44.64% market share by value in FY25. Its dominance extends to the electric vehicle segment, where it captured over 70% of the market share for electric two-wheeler and three-wheeler wiring harnesses during the same period.
As of December 31, 2025, the company operated 22 manufacturing sites, three engineering centers, and seven warehouses globally, with plans for four additional plants in India. Key clients include major automotive manufacturers such as Bajaj Auto Ltd, TVS Motor Company Ltd, Honda Motorcycle and Scooter India Private Ltd, and Eicher Motors Ltd’s Royal Enfield business.
Financials show robust growth, with revenue from operations increasing by 62% to ₹3,444.86 crore in FY25 from ₹2,125.86 crore in FY23. Profit after tax more than doubled to ₹353.89 crore from ₹163.91 crore during the same period. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw substantial growth, rising to ₹590.96 crore in FY25 from ₹298.68 crore in FY23, with the EBITDA margin expanding to 17.15% from 14.05%. Wiring harnesses constituted the largest revenue stream, accounting for 78% of FY25 revenue. India contributed approximately 90% of the company's revenue in FY25, while the electric vehicle segment's contribution grew significantly to 25.2% from 8.05% in FY23. Dhoot Transmission anticipates benefiting from the increasing adoption of electric vehicles in India's two and three-wheeler markets.