Dhoot Transmission opens Rs 3,067 crore IPO with Rs 829-871 band

The Development

Dhoot Transmission Limited, a Pune-based manufacturer of automotive wiring harnesses, has opened its initial public offering, with the three-day subscription window running from Monday, August 10 to Wednesday, August 12, 2026, per the red herring prospectus filed with SEBI. The offer is a mainboard issue of up to about Rs 3,067 crore at the upper end of the price band, comprising a fresh issue and an offer for sale, and is proposed to be listed on both BSE and NSE, with NSE as the designated stock exchange.

Ahead of the opening, the company completed its anchor allocation on Friday, August 7, 2026, the anchor bidding date recorded in the offer document. The Economic Times reported that Dhoot Transmission raised Rs 918 crore from 72 anchor investors, with domestic mutual funds accounting for 61.27% of the anchor book. Anchor allocation is a pre-issue step in which institutional investors are allotted shares a day before the general subscription window opens; it is a matter of exchange record.

The red herring prospectus is dated August 3, 2026 and is available on SEBI's website and the exchanges. This report is based on that official record.

The Company

Dhoot Transmission describes itself as "one of India's leading electrical and electronics" companies, citing a CRISIL report, per the RHP. The company designs, engineers and manufactures wiring harnesses along with battery packs, sensors and electronic controllers, and automotive switches. Wiring harnesses contributed 77.08% of revenue from operations in Fiscal 2026, the company discloses.

Its customers include Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India, and Royal Enfield, per the offer document, spanning two-wheeler, three-wheeler, commercial-vehicle and off-highway markets as well as some non-automotive uses. As of March 31, 2026, the company had 22 operational manufacturing facilities, 19 in India and three abroad, with international plants in the United Kingdom, Slovakia and Thailand, the RHP states.

On financials, the company discloses restated revenue from operations of Rs 4,524.96 crore in Fiscal 2026, up from Rs 3,444.86 crore in Fiscal 2025 and Rs 2,797.73 crore in Fiscal 2024. Restated profit for the year was Rs 396.84 crore in Fiscal 2026, against Rs 353.89 crore and Rs 298.75 crore in the two preceding years, per the RHP, which also reports an EBITDA margin of 15.71% for Fiscal 2026. The promoters are Rahul Radhavallabh Dhoot and BC Asia Investments XV Limited, part of the Bain Capital group.

The Offer Structure

The offer combines a fresh issue of up to Rs 1,400 crore with an offer for sale of up to 19,137,602 equity shares of face value Rs 2 each, per the RHP. In the offer for sale, promoter selling shareholder BC Asia Investments XV Limited is offering up to 16,018,769 shares and promoter group shareholder Mangalam Capital Private Limited up to 3,118,833 shares.

The price band has been fixed at Rs 829 to Rs 871 per equity share, with a lot size of 17 shares; a single retail lot works out to about Rs 14,807 at the upper end of the band. The basis of allotment is expected on August 13, with listing on BSE and NSE on August 17.

The stated objects of the fresh issue, per the RHP, are the repayment or prepayment of borrowings (Rs 464.80 crore), investment in subsidiaries Dhoot Autocomponents, Dhoot Automotive Systems and Dhoot Transmission UK for repayment of their borrowings (Rs 301.77 crore), the setting up of new wiring harness plants at Jhajjar in Haryana and Hosur in Tamil Nadu (Rs 150 crore), and funding inorganic growth 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; KFin Technologies is the registrar. Readers working through allotment arithmetic can use Oquilia's lumpsum calculator or CAGR calculator, and the news desk carries prior coverage.

Risk Factors

The RHP sets out the risks the company is required to disclose. Among them, the offer document flags heavy revenue concentration in the two-wheeler segment, which contributed 65.47% of revenue from operations in Fiscal 2026, and in the three-wheeler segment, chiefly through wiring harnesses; any adverse change in those sectors could affect the business, the company discloses.

The RHP also lists dependence on a small set of customers: the top ten customers contributed 80.93% of revenue from operations in Fiscal 2026, and the company notes it does not have firm, long-term volume commitments with its OEM customers. The offer document further describes the business as capital-intensive, with substantial capital expenditure and working-capital requirements that may need additional financing.

Among other risk factors the company discloses are the handling of hazardous materials and heavy machinery at its plants, an emphasis of matter reported by its auditors for the year ended March 31, 2024, and a history of related-party transactions. This section reports the company's own disclosures and is not an assessment by this desk.

What Happens Next

With the anchor book placed on August 7, the offer is open to qualified institutional buyers, non-institutional bidders and retail bidders from August 10 to August 12, per the RHP. Applications in a book-built issue are made through the ASBA and UPI mechanisms; the UPI mandate end time is 5.00 p.m. on the closing date, the offer document states.

After the window closes, the registrar, KFin Technologies, finalises the basis of allotment, expected on August 13, following which shares are credited to successful applicants and blocked funds are released for the remainder. The equity shares are then scheduled to list on BSE and NSE on August 17. These are the standard mechanics of a mainboard issue, stated as process and not as any prediction of demand or price.

FAQ

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, with a lot size of 17 shares, per the issue's terms. A single retail lot works out to about Rs 14,807 at the upper end of the band, and retail bids are made in multiples of the lot size.

When does the issue open and close?

The offer opens on Monday, August 10, 2026 and closes on Wednesday, August 12, 2026, per the red herring prospectus. Anchor bidding took place on Friday, August 7. The basis of allotment is expected on August 13, with listing on BSE and NSE on August 17.

What do the anchor numbers mean?

Anchor investors are institutional buyers allotted shares a day before the issue opens, at a price within the band. The Economic Times reported an anchor allocation of Rs 918 crore from 72 investors, with domestic mutual funds taking 61.27%. The anchor book is a matter of exchange record and is not an indication of eventual demand.

Where can I read the RHP?

The red herring prospectus dated August 3, 2026 is available on SEBI's website and on the BSE and NSE websites. It contains the complete offer terms, financials and the full risk-factors section.

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.

This report is based on the red herring prospectus filed with SEBI and the accompanying abridged prospectus. It was surfaced via coverage in The Economic Times.