Dhoot Transmission set for market debut after heavily subscribed Indian IPO
The Indian auto components manufacturer is poised for a strong market listing following massive institutional demand, highlighting investor appetite for electric vehicle supply chains.
Dhoot Transmission is set to make its stock market debut today following a Rs 3,066.89 crore initial public offering that drew overwhelming demand. Priced at Rs 871 per share, the unofficial grey market is currently valuing the stock at a premium of roughly 30 per cent, suggesting a listing price near Rs 1,135.
The offering, which ran from August 10 to August 12, was subscribed 74.21 times overall. Institutional interest heavily drove the demand, with qualified institutional buyers subscribing 212.92 times and non-institutional investors bidding 51.93 times.
The retail portion of the sale was subscribed 8.12 times. The public issue consisted of a fresh issuance of 1.61 crore shares worth Rs 1,400 crore and an offer for sale of 1.91 crore shares totaling Rs 1,666.89 crore.
Proceeds from the fresh issue will be used to strengthen the company's balance sheet and fund future expansion. Dhoot Transmission plans to allocate Rs 464.80 crore to repay outstanding borrowings and inject Rs 301.77 crore into subsidiaries including Dhoot Autocomponents and Dhoot Transmission UK.
The listing highlights growing investor appetite for the electric vehicle supply chain in India. Founded in 1998, the company is a dominant player in the country’s electrical and electronics automotive ecosystem, holding a 41 per cent market share in the two-wheeler and three-wheeler wiring harness sector.
Its position is even stronger in the electric mobility space, where it commands nearly 70 per cent of the electric two-wheeler and three-wheeler market for the 2026 fiscal year. Its product range includes wiring harnesses, battery packs, sensors and electronic controllers for both internal combustion and electric vehicle platforms.
Approximately 95 per cent of its automotive portfolio is either focused on electric vehicles or neutral to the powertrain type, positioning the business to benefit from long-term electrification trends. The manufacturer also supplies components for commercial vehicles, off-highway vehicles and agricultural equipment.
The market debut follows a period of robust financial growth for the company. Total income for the fiscal year ending in 2026 rose 31 per cent to Rs 4,563.70 crore, while profit after tax increased 12 per cent to Rs 396.84 crore.
Axis Capital served as the book-running lead manager for the issue, with Kfin Technologies acting as the registrar. The company currently employs 2,735 full-time staff across its manufacturing, research, engineering and corporate functions.
