Dhoot Transmission IPO opens Aug 10; analysts assign 'Subscribe' tag

Dhoot Transmission IPO review: Dhoot Transmission Ltd's IPO will open for subscription on Monday (August 10)  and conclude on August 12 (Wednesday). The company has fixed a price band of ₹829-871 per share.

 

The company's ₹3,067 crore IPO is a mix of fresh issue and offer for sale. The fresh issue component is made up of 1.6 crore equity shares, and the OFS is up to 1.9 crore shares by existing shareholders. On the OFS, the company will not receive any proceeds from the public offering.

 

Dhoot Transmission IPO review

 

Analysts have shared a bullish view on Dhoot Transmission IPO, noting that the company is a leading manufacturer of wiring harnesses and electrical distribution systems for the automotive and industrial sectors.

 

Broekrage firm Swastika noted that Dhoot Transmission has delivered a faster 3-year revenue compound annual growth rate of 27 per cent compared to the legacy auto ancillary market growth rate of 12 per cent to 15 per cent. A Top-2 player in 2W/3W wiring harnesses with a dominant position in the EV segment. Well-positioned to benefit from rising EV penetration, premiumisation, and higher wiring harness content per vehicle. High customer concentration and execution of expansion projects remain key monitorables.

 

“Subscribe for long-term growth potential and potential listing gains; however, the valuation is fairly priced, making disciplined position sizing advisable,” the brokerage said.

 

Another brokerage firm, Equivision, noted that Dhoot Transmission is among India's largest manufacturers of 2W and 3W wiring harnesses and holds over 70 per cent market share in the 3W segment. Its broad product portfolio, long-standing OEM relationships, and growing presence in EV components position it to benefit from rising vehicle electrification and increasing demand for electrical systems. 

 

It further added that the company has maintained 13-year average relationships with its top five customers, supported by deep engineering integration and localization initiatives, ensuring revenue visibility and high switching costs. Additionally, capacity expansions at Hosur (wiring harnesses) and Chakan (battery manufacturing) are expected to strengthen its position in the growing EV and automotive electronics market.

 

The brokerage has given an ‘Apply’ rating for the stock. 

 

Dhoot Transmission GMP, lot size 

 

Dhoot Transmission shares are commanding a strong premium in the unlisted market, according to grey market trackers. As of 3 PM, Dhoot Transmission shares traded at ₹1,121 in the grey market, reflecting a premium of ₹250 or 28.7 per cent over the upper price band.

 

Investors can bid for a minimum of 17 equity shares and in multiples thereof. As per the details, 50 per cent has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and the remaining 35 per cent for retail investors.

 

The equity shares of Dhoot Transmission are proposed to be listed on the BSE and NSE on or around August 17.

 

Axis Capital Ltd. is the book-running lead manager and Kfin Technologies Ltd. is the registrar of the issue.

 

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Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.