Dhoot Transmission lists at ~38% premium, then shares dip after debut

Mumbai: Shares of auto components maker Dhoot Transmission Ltd made a strong stock market debut on Monday, listing at a premium of nearly 38 per cent over the IPO issue price of Rs 871 per share.Strong ListingOn the BSE, Dhoot Transmission shares opened at Rs 1,193.80, marking a gain of 37 percent from the issue price. The stock extended its rise and touched Rs 1,212.70, reflecting a jump of 39.23 per cent.At the NSE, the shares began trading at Rs 1,200, representing a listing gain of 37.77 percent. Following the debut, the company’s market valuation stood at Rs 23,487.23 crore.Robust DemandThe company’s Rs 3,067-crore initial public offering received a strong response from investors. The issue was subscribed 74.21 times on the final day of bidding on Wednesday.Dhoot Transmission had fixed the IPO price band at Rs 829 to Rs 871 per share. The strong subscription level indicated robust interest from investors across different categories.The public issue included a fresh sale of equity shares worth up to Rs 1,400 crore. It also comprised an offer-for-sale of up to 1.91 crore equity shares by existing promoters.The selling shareholders included BC Asia Investments XV Ltd, an entity linked to private equity firm Bain Capital, and Mangalam Capital Private Ltd. Journalist Nitin Dhoot & Assistant Registrar Sanjay Abdagire Die In Late-Night Accident In ParbhaniFund UtilisationDhoot Transmission plans to use the fresh issue proceeds to repay or prepay certain outstanding borrowings. Part of the funds will be invested in subsidiaries to help them reduce debt.The company will also establish new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. Some proceeds have been earmarked for acquisitions and other strategic initiatives. IPO Rush Gathers Pace Next Week, Seven Companies Aim To Raise Over ₹6,400 CroreBusiness ProfileFounded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures wiring harnesses, automotive switches, electronic sensors and controllers, cables, power cords, connectors and terminals.Its products are used across two-wheelers, three-wheelers, commercial and off-road vehicles, farm equipment, earth movers, medical devices and domestic appliances.

Dhoot Transmission share price witnessed profit booking at higher levels. It fell 5.3% from its listing price to Rs 1,130.50 apiece on the BSE, while on NSE, it declined 5.75% from its debut price to a low of Rs 1,131.00 per share.

Dhoot Transmission share price witnessed profit booking at higher levels. It fell 5.3% from its listing price to Rs 1,130.50 apiece on the BSE, while on NSE, it declined 5.75% from its debut price to...

Dhoot Transmission shares were listed at Rs1,200 apiece on the NSE, a premium of 37.77% to the issue price of Rs 871per share.