Dhoot Transmission sets Rs 829-871 price band for August IPO

The Development

Dhoot Transmission Limited, a Pune-based automotive wiring harness manufacturer, set a price band of Rs 829 to Rs 871 per equity share for its mainboard initial public offering, a development first reported by Mint. The band applies to shares of face value Rs 2 each. Per the RHP as reported, the subscription window runs from 10 August to 12 August 2026, with listing on the BSE and NSE expected on 17 August 2026 and a lot size of 17 shares.

The price band stage follows the offer document that Dhoot Transmission filed with the regulator. The company's Updated Draft Red Herring Prospectus is hosted in SEBI's public-issues filings section, dated 22 May 2026, and SEBI issued its observations before the offer could proceed to this stage. Those observations are clearance to proceed, not an endorsement of the issue's merits.

The offer combines a fresh issue and an offer for sale. Per the offer document, the fresh issue aggregates up to Rs 1,400 crore, while the offer for sale covers up to 16,310,733 equity shares from two selling shareholders. At the upper end of the band, the RHP implies a market capitalisation of about Rs 17,816 crore, per Mint's reading of the terms.

The Company

Dhoot Transmission was incorporated in 1998 and manufactures wiring harnesses and related automotive electrical components, including connectors, power distribution units and high-voltage cable systems for vehicle electrical architectures. The offer document describes a business that develops products in close collaboration with original equipment manufacturers, with a research and engineering headcount of 232 as of 31 December 2025 out of a total staff of 2,681.

Per the offer document, revenue from operations was Rs 2,125.86 crore in Fiscal 2023, Rs 2,797.73 crore in Fiscal 2024 and Rs 3,444.86 crore in Fiscal 2025, and stood at Rs 3,247.67 crore for the nine months ended 31 December 2025. Restated profit for the year was Rs 163.91 crore in Fiscal 2023, Rs 298.75 crore in Fiscal 2024 and Rs 353.89 crore in Fiscal 2025, with Rs 301.46 crore for the nine months ended 31 December 2025.

The company discloses that roughly 90 per cent of revenue from contracts with customers came from within India in the nine months ended 31 December 2025, with the United Kingdom the largest export market at about 6.9 per cent. The promoters, BC Asia Investments XV Limited and Rahul Radhavallabh Dhoot, held 84.87 per cent of the paid-up capital before the offer, per the offer document.

The Offer Structure

Per the offer document, the fresh issue of up to Rs 1,400 crore is by the company, and the offer for sale of up to 16,310,733 shares is by BC Asia Investments XV Limited (up to 13,191,900 shares, a promoter selling shareholder) and Mangalam Capital Private Limited (up to 3,118,833 shares, a promoter group selling shareholder). The company will not receive proceeds from the offer for sale.

The stated objects of the fresh issue are repayment or prepayment of certain borrowings of the company; investment in subsidiaries including Dhoot Autocomponents, Dhoot Electricals Systems, Dhoot Automotive Systems and Dhoot Transmission UK for their debt reduction; setting up new wiring harness plants at Jhajjar in Haryana and Hosur in Tamil Nadu; and funding inorganic growth through acquisitions and general corporate purposes. The book-running lead managers are Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), SBI Capital Markets and 360 ONE WAM, with KFin Technologies as registrar.

With a lot size of 17 shares, one lot at the upper band works out to Rs 14,807. Readers working through the arithmetic of an allotment or the compounding of a holding can use Oquilia's lumpsum calculator or CAGR calculator, and prior coverage sits on the Oquilia news desk.

Risk Factors

The offer document sets out the risks the company was required to disclose. Among them, the company discloses customer concentration: a significant portion of revenue from operations, Rs 2,157.92 crore or 66.45 per cent in one reported period, came from its largest customers, so the loss of a major customer could hurt results.

The offer document also flags export and tariff exposure, noting that changes in international trade policies and tariffs could raise costs and reduce competitiveness in export markets. It lists a records risk: certain historical secretarial documents, including transfer forms and challans, are untraceable, and the company cannot assure that no adverse action will follow. The UDRHP-I further discloses that the promoters will continue to exercise significant influence given their 84.87 per cent pre-offer holding, and that the company's move into electric-vehicle architectures, such as high-voltage cable systems, involves longer development cycles and higher capital intensity, so those investments may not be recovered if standards evolve differently than expected.

What Happens Next

The standard mechanics run from the current milestone forward. With SEBI's observations received and the price band set, the anchor investor book is expected one working day before the issue opens under SEBI norms. The three-day public subscription window is scheduled for 10 to 12 August 2026, with bids across the qualified institutional, non-institutional and retail categories.

After the close, the basis of allotment is finalised by the registrar, KFin Technologies, followed by refunds and the unblocking of application amounts under the ASBA and UPI process, and the crediting of shares to demat accounts. Listing on the BSE and NSE is expected on 17 August 2026, per the RHP as reported. Category-wise subscription figures will be published by the exchanges as bidding progresses, and the actual listing price will be an exchange fact on debut.

FAQ

Should I apply for this IPO?

Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.

What is the price band and lot size?

The price band is Rs 829 to Rs 871 per equity share of face value Rs 2, per the RHP as reported. One lot is 17 shares, so a single lot at the upper band works out to Rs 14,807. Applications are made in multiples of one lot.

When does the issue open and close?

Per the RHP as reported, the subscription window runs from 10 August to 12 August 2026, with listing on the BSE and NSE expected on 17 August 2026. The anchor allocation is set for one working day before the opening under SEBI norms.

What do SEBI's observations mean?

SEBI's observations are clearance for the offer to proceed to the RHP stage. They are not an approval of the issue's merits or an endorsement. SEBI's own disclaimer states it does not guarantee the accuracy or adequacy of the offer document.

Where can I read the offer document?

Dhoot Transmission's Updated Draft Red Herring Prospectus is hosted on SEBI's public-issues filings section, and the RHP is available with the exchanges. Financials, the objects of the offer, promoter details and risk factors are set out there in full.

This report is based on the Updated Draft Red Herring Prospectus filed with SEBI and the price band and dates as reported. It was surfaced via coverage in Mint.