Dhoot Transmission's IPO recorded a subscription level of approximately 0.9 times by the second day of bidding. The company has already secured ₹918 crore from anchor investors, with the grey market premium indicating steady demand. Investors should note the upcoming closing date of August 12 and the risks associated with customer concentration.
The initial public offering of Dhoot Transmission is seeing steady activity as it moves toward the close of the bidding process. As of the second day, the issue has seen a subscription level of approximately 0.9 times, with strong participation noted from non-institutional investors. The IPO, which has set a price band between ₹829 and ₹871, is scheduled to close for public bidding on August 12, 2026.
Before the IPO opened to the public, Dhoot Transmission successfully garnered significant institutional support. The company raised ₹918.27 crore from 72 anchor investors, including major global and domestic names such as BlackRock, Abu Dhabi Investment Authority, SBI Mutual Fund, and ICICI Prudential Mutual Fund. This support suggests that institutional investors have evaluated the company's business model ahead of its market debut.
Investors looking at the long-term potential of the company should consider specific operational and financial factors. The business is currently in an expansion phase, with plans to use proceeds from the fresh issue—totaling ₹1,400 crore—to set up new manufacturing facilities for wiring harnesses in Haryana and Tamil Nadu. While this expansion aims to support future growth, it brings execution risks, such as the possibility of project delays or cost increases, which could impact timelines.
Another point for investors to monitor is customer concentration. A significant portion of the company’s revenue is derived from key clients like Bajaj Auto. Any shifts in the production plans or demand cycles of these major customers can have a direct impact on the company’s revenue and profit stability. Additionally, while the company is growing, analysts often track whether revenue growth is being balanced with healthy profit margins, as rapid expansion can sometimes pressure earnings in the short term.
In the unofficial grey market, shares of Dhoot Transmission are trading at a premium of approximately ₹240 to ₹250 per share, which is roughly 28% to 30% above the upper price band. While this premium reflects positive market sentiment, it is important to remember that grey market trading is speculative and unofficial, meaning it does not guarantee how the stock will perform once it officially lists on the exchanges.
The final allotment of shares is expected to take place around August 13, 2026, and the stock is slated to debut on the exchanges on August 17, 2026. Investors tracking the issue should look for the final subscription numbers at the close of the issue and future management commentary regarding the execution of the new manufacturing projects.