The Economic Times (India)
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Dhoot Transmission raises Rs 918 crore from 72 anchor investors ahead of Rs 3,067-crore IPO
Dhoot Transmission Ltd has raised Rs 918.27 crore from 72 anchor investors ahead of its Rs 3,067 crore initial public offering, allotting 1,05,42,657 equity shares at the upper price band of Rs 871 apiece. The shares have a face value of Rs 2 each, including a share premium of Rs 869 per equity share.Domestic mutual funds accounted for the bulk of the anchor allocation. Of the 1,05,42,657 shares allotted, 64,59,984 shares, or 61.27% of the total anchor allocation, were allotted to eight domestic mutual funds through 46 schemes. Another 9,21,895 shares, representing 8.74% of the anchor allocation, were allotted to life insurance companies and pension funds.The anchor book attracted a broad mix of marquee investors, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, BlackRock, WhiteOak, Abu Dhabi Investment Authority, Axis Mutual Fund, Mirae and Nippon India Mutual Fund.Other investors included Government Pension Fund, Pictet, Amundi Funds, Allianz Global Investors, Franklin Templeton Mutual Fund, Tata Mutual Fund, Invesco Mutual Fund, Canara Robeco Mutual Fund, UTI Mutual Fund, PGIM India Mutual Fund, HSBC Mutual Fund and Sundaram Mutual Fund.The list also included SBI Life Insurance, HDFC Life Insurance, ICICI Prudential Life Insurance, Axis Max Life Insurance, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Edelweiss Mutual Fund and 3P India Equity Fund.Dhoot Transmission IPO detailsDhoot Transmission will open its IPO on Monday, August 10, 2026. The issue will close on Wednesday, August 12. The company plans to use the IPO proceeds to strengthen its balance sheet and support future growth initiatives.Around Rs 464.80 crore of the net proceeds will go towards the repayment or prepayment of certain outstanding borrowings. Another Rs 301.77 crore will be infused into subsidiaries, including Dhoot Autocomponents Private Limited, Dhoot Electricals Systems Private Limited, Dhoot Automotive Systems Private Limited and Dhoot Transmission UK Limited, to help them reduce debt.The company has earmarked Rs 150 crore for setting up new wiring harness manufacturing facilities at Jhajjar in Haryana and Shoolagiri in Hosur, Tamil Nadu. The new facilities will help enhance production capacity to meet rising demand.The remaining proceeds will be used for inorganic growth opportunities through acquisitions and for general corporate purposes.About Dhoot TransmissionFounded in April 1998, Dhoot Transmission is one of India's leading electrical and electronics companies, specialising in the design, engineering, manufacturing and supply of wiring harnesses and electrical distribution systems for automotive and industrial applications.The company ranks among the top two players in India's two-wheeler and three-wheeler wiring harness market, with a 41% market share. It also has a dominant position in the electric two-wheeler and three-wheeler segment, where it commands nearly 70% market share in FY26.Dhoot Transmission financialsThe company reported strong financial performance in FY26, supported by higher revenue and steady profitability. Total income rose 31% to Rs 4,563.70 crore in FY26 from Rs 3,472.24 crore in FY25. Profit after tax increased 12% to Rs 396.84 crore from Rs 353.89 crore in the previous financial year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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