Dhoot Transmission sets Rs 829-871 band for Rs 3,067 crore IPO

The Development

Dhoot Transmission Limited, a Pune-headquartered automotive electrical and electronics manufacturer, has moved to the pricing stage of its initial public offering. Per the red herring prospectus (RHP) dated August 3, 2026 and filed with the Securities and Exchange Board of India (SEBI), the company will open its book-built issue for subscription on Monday, August 10, 2026 and close it on Wednesday, August 12, 2026, with anchor investor bidding on Friday, August 7, 2026. The price band has been set at Rs 829 to Rs 871 per equity share of face value Rs 2, first reported by The Economic Times.

At the upper end of the band the offer aggregates to about Rs 3,067 crore, combining a fresh issue of equity shares aggregating up to Rs 1,400 crore with an offer for sale of up to 1,91,37,602 equity shares by two selling shareholders. The equity shares are proposed to be listed on both the BSE and the National Stock Exchange (NSE), with the NSE as the designated stock exchange. This is the company's first public issue.

The filing sits on SEBI's public-issues record, alongside the exchanges.

The Company

Dhoot Transmission describes itself in the offer document as "one of India's leading electrical and electronics" companies, citing a CRISIL report. The company designs, engineers, manufactures and supplies wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems and data cables. Its product lines span wiring harnesses, battery packs, sensors and electronic controllers, and automotive switches, and it operated 22 manufacturing plants as of Fiscal 2026, the company discloses.

Wiring harnesses contributed 77.08% of revenue from operations in Fiscal 2026, per the RHP, and the company serves two-wheeler, three-wheeler, commercial vehicle, off-highway and farming and industrial equipment platforms, as well as non-automotive applications such as gas boilers and medical equipment. Named customers include Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India and Royal Enfield, and the company discloses that electric-vehicle revenue accounted for 24.17% of revenue from operations in Fiscal 2026.

On financials, the offer document reports restated consolidated 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. The promoters are Rahul Radhavallabh Dhoot and BC Asia Investments XV Limited, the latter part of the Bain Capital group.

The Offer Structure

The offer combines a fresh issue and an offer for sale. The fresh component aggregates up to Rs 1,400 crore, while the offer for sale covers up to 1,91,37,602 equity shares. Per the RHP, the selling shareholders are BC Asia Investments XV Limited, offering up to 1,60,18,769 shares as a promoter selling shareholder, and Mangalam Capital Private Limited, offering up to 31,18,833 shares as a promoter group selling shareholder. Proceeds from the offer-for-sale portion go to the selling shareholders, not to the company.

Per the objects of the offer, the company proposes to use the net proceeds of the fresh issue towards repayment or prepayment of borrowings (Rs 464.80 crore), investment in subsidiaries Dhoot Autocomponents, Dhoot Automotive Systems and Dhoot Transmission UK to repay their borrowings (Rs 301.77 crore), and new wiring harness plants at Jhajjar in Haryana and Shoolagiri, Hosur in Tamil Nadu (Rs 150 crore), with the balance towards 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. The lot size and minimum application amount are specified in the price-band advertisement and the RHP. Readers can use Oquilia's lumpsum calculator or CAGR calculator for the arithmetic of an allotment; prior primary-market coverage sits on the /news desk.

Risk Factors

The RHP sets out the risks the company is required to disclose, and they are stated in full in the offer document. Among them, the company discloses heavy dependence on the two-wheeler segment, which contributed 65.47% of revenue from operations in Fiscal 2026, with the three-wheeler segment adding 12.86%; wiring harnesses alone made up 77.08% of revenue. Adverse changes in these sectors, or in demand, pricing or technology for wiring harnesses, could hurt the business, the RHP states.

The offer document also lists customer concentration as a risk: the top ten customers contributed 80.93% of revenue from operations in Fiscal 2026, and the company discloses it does not have firm, long-term volume commitments with its OEM customers. Among the other risk factors the company discloses are the capital-intensive nature of the business, with substantial capital expenditure and working capital requirements, and an emphasis of matter reported by its statutory auditors in the audit report for the financial year ended March 31, 2024. These are the company's own disclosures, not an assessment by this desk.

What Happens Next

With the price band and dates announced at the RHP stage, the standard mechanics follow. Anchor investor bidding is scheduled for Friday, August 7, 2026, ahead of the public window. The three-day subscription window runs from Monday, August 10 to Wednesday, August 12, 2026, with the UPI mandate cut-off at 5.00 p.m. on the closing date, per the RHP. Applications are made through the ASBA and UPI framework.

After the issue closes, the basis of allotment is finalised with the registrar and the designated stock exchange, followed by unblocking or refund of application amounts, credit of shares to demat accounts, and listing on the BSE and NSE. Category-wise exchange subscription data during the bidding window, and the eventual listing price against the issue price, will be matters of official record. This is stated as process, not as a prediction of demand or price.

FAQ

What is the price band for the Dhoot Transmission IPO?

The price band is set at Rs 829 to Rs 871 per equity share of face value Rs 2, per the RHP-stage announcement. At the upper end, the offer aggregates to about Rs 3,067 crore, comprising a fresh issue of up to Rs 1,400 crore and an offer for sale of up to 1,91,37,602 shares.

When does the issue open and close?

Anchor investor bidding is on Friday, August 7, 2026. The public subscription window opens on Monday, August 10, 2026 and closes on Wednesday, August 12, 2026, with the UPI mandate confirmation cut-off at 5.00 p.m. on the closing date, per the RHP.

Where can I read the RHP?

The red herring prospectus is available on SEBI's website under its public-issues filings, and on the BSE and NSE websites. It contains the complete offer terms, restated financial statements and the full risk-factors section.

How is the basis of allotment decided?

After the issue closes, the registrar, KFin Technologies, finalises the basis of allotment with the designated stock exchange in line with SEBI rules for each investor category. Where a category is oversubscribed, allotment follows the prescribed method, and unblocked or refunded amounts follow for unsuccessful applicants.

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 offer's abridged prospectus. It was surfaced via coverage in The Economic Times.