📌 Quick Summary for Investors
Dhoot Transmission Limited IPO is a Rs. 3,811.21 Crore public issue comprising a Fresh Issue of Rs. 499.10 Cr and an Offer for Sale (OFS) of Rs. 3,311.21 Cr (3,52,18,047 shares). The price band is Rs. 829 to Rs. 871 per share with a Rs. 80/- employee discount. Bidding opens on Aug 10, 2026 and closes on Aug 12, 2026. Dhoot Transmission holds a dominant 41% market share in India's 2W/3W wiring harness market and ~70% share in the electric 2W/3W segment. Total revenue expanded at a 27.6% 2-year CAGR to Rs. 4,563.70 Cr in FY26 with a PAT of Rs. 396.84 Cr. Sushil Finance assigns a SUBSCRIBE rating.
IPO Overview
Dhoot Transmission Limited is tapping the capital markets with a total issue size of Rs. 3,811.21 Crore. The public offering consists of a fresh issuance of equity shares aggregating up to Rs. 499.10 Crore alongside an Offer for Sale (OFS) of Rs. 3,311.21 Crore (comprising 3,52,18,047 equity shares of Face Value Rs. 2 each) by selling shareholders. The net proceeds from the OFS will go to the selling shareholders, whereas fresh issue funds will be deployed toward group balance-sheet deleveraging and manufacturing capacity expansion across Tamil Nadu and Haryana.
Key IPO Details
| Parameters |
Details / Values |
| Price Band |
Rs. 829 to Rs. 871 Per Share |
| Employee Discount |
Rs. 80/- Per Share |
| Issue Opens On |
August 10, 2026 |
| Issue Closes On |
August 12, 2026 |
| Lot Size |
17 Equity Shares & in Multiples thereafter |
| Face Value |
Rs. 2 Per Share |
| Fresh Issue Size |
Rs. 1400 Crore |
| Offer for Sale (OFS) |
Rs. 1666.89 Crore (3,52,18,047 Shares) |
| Total Issue Size |
Rs. 3,066.89 Crore (at Upper Band) |
| Listing Exchanges |
BSE & NSE |
| Book Running Lead Managers (BRLMs) |
HDFC Bank, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets |
| Registrar to the Offer |
Kfin Technologies Ltd. |
Issue Reservation Breakup
| Category |
Reservation (% of Net Issue) |
Amount (Rs. in Cr. at Upper Band) |
| QIB (Qualified Institutional Buyers) |
50% |
Rs. 1,533.45 Cr |
| HNI / NII (Non-Institutional) |
15% |
Rs. 460.03 Cr |
| Retail Category |
35% |
Rs. 1,073.41 Cr |
| Total Net Issue |
100% |
Rs. 3,066.89 Cr |
Company Overview
Dhoot Transmission Limited is one of India's leading electrical and electronics (E&E) companies. The company is actively engaged in the design, engineering, manufacturing, and supply of critical wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems, and data cables, delivering application-specific architectures across multiple vehicle platforms.
The Company serves both automotive and non-automotive applications, meeting stringent OEM requirements for performance, safety, and reliability. Dhoot Transmission manufactures wiring harnesses and electrical distribution systems for both Internal Combustion Engine (ICE) and Electric Vehicles (EV), alongside a broader product suite spanning battery packs, switches, sensors (ABS sensors, lean-angle sensors), controllers (USB chargers, light control modules), and power supply cords.
Objects of the Offer
The Offer comprises a fresh issue aggregating up to Rs. 1,400 crore (gross / overall authorization) alongside an offer for sale of up to 1,91,37,602 equity shares by the Selling Shareholders (OFS proceeds do not accrue to the Company). The net proceeds from the fresh issue of Rs. 499.10 crore / Rs. 1,400 crore structure will be deployed toward specific strategic objectives:
- Repayment/Prepayment of Own Borrowings: Rs. 464.80 crore for repayment/prepayment of the Company's outstanding debt.
- Investment into Subsidiaries: Rs. 301.77 crore for investment into subsidiaries (Dhoot Auto Components, Dhoot Automotive Systems, and Dhoot Transmission UK) to repay their respective borrowings.
- Manufacturing Capacity Expansion: Rs. 150.00 crore for setting up new wiring harness manufacturing plants at Jhajjar (Haryana) and Hosur (Tamil Nadu).
- Growth & General Corporate Purposes: The remaining balance will be allocated toward inorganic growth/acquisitions and general corporate purposes (capped at 35% combined).
This represents a balanced capital deployment strategy-roughly 55% toward deleveraging the parent and subsidiary balance sheets and 45% toward genuine capacity expansion and M&A optionality, combining structural balance-sheet repair with funded future growth.
Key Investment Highlights
- Dominant Market Share: Established leadership in India's 2W/3W wiring harness market, holding a 41% overall value-share and approximately 70% market share in the electric 2W/3W segment (FY26, CRISIL Report).
- EV-Focused & Powertrain-Agnostic Portfolio: Approximately 95% of the automotive product portfolio is EV-focused or powertrain-neutral, directly aligning the Company with the Indian automotive industry's electrification shift.
- Diversified End-Market Presence: Operational footprint extends beyond 2W/3W vehicles into commercial vehicles (CVs), off-highway vehicles, and farming/industrial equipment.
- Rising Kit Value Driver: Perfectly positioned to capture increasing kit value per vehicle driven by four core structural megatrends: electrification, premiumization, automation/safety, and connected vehicle technology.
- Robust Financial Scale: Strong financial track record with total income expanding from Rs. 2,799.32 crore in FY24 to Rs. 4,563.70 crore in FY26 alongside consistently expanding EBITDA.
Brief Financial Summary (FY2024 - FY2026)
All figures below are stated in Rs. Crore unless otherwise specified:
| Particulars |
FY2024 |
FY2025 |
FY2026 |
| Total Income |
2,799.32 |
3,472.24 |
4,563.70 |
| Total Expenditure |
2,411.18 |
3,014.64 |
4,027.75 |
| EBITDA |
512.40 |
590.96 |
710.99 |
| Profit Before Tax (PBT) |
388.23 |
457.59 |
515.69 |
| Profit After Tax (PAT) |
298.75 |
353.89 |
396.84 |
| E.P.S. (Diluted) (Rs.) |
20.83 |
24.31 |
24.40 |
| RONW (%) |
40.32% |
36.18% |
16.55% |
Lot Size & Application Payment Matrix
Retail Category Lot Size Table (@ Upper Price Band of Rs. 871)
| Lots |
No. of Shares |
Minimum Application Amount (Rs.) |
| 1 Lot | 17 Shares | Rs. 14,807 |
| 2 Lots | 34 Shares | Rs. 29,614 |
| 3 Lots | 51 Shares | Rs. 44,421 |
| 4 Lots | 68 Shares | Rs. 59,228 |
| 5 Lots | 85 Shares | Rs. 74,035 |
| 6 Lots | 102 Shares | Rs. 88,842 |
| 7 Lots | 119 Shares | Rs. 1,03,649 |
| 8 Lots | 136 Shares | Rs. 1,18,456 |
| 9 Lots | 153 Shares | Rs. 1,33,263 |
| 10 Lots | 170 Shares | Rs. 1,48,070 |
| 11 Lots | 187 Shares | Rs. 1,62,877 |
| 12 Lots | 204 Shares | Rs. 1,77,684 |
| 13 Lots | 221 Shares | Rs. 1,92,491 |
HNI / NII Category Payment Chart (@ Upper Price Band of Rs. 871)
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
238 Shares |
Rs. 2,07,298 |
| Big HNI |
1,156 Shares |
Rs. 10,06,876 |
Indicative IPO Timeline
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with Designated Stock Exchange |
13/08/2026 |
| Initiation of refunds / unblocking of ASBA Fund |
14/08/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
14/08/2026 |
| Commencement of trading of Equity Shares on BSE & NSE |
17/08/2026 |
Our View / Analyst Recommendation
ANALYST RATING: SUBSCRIBE
Dhoot Transmission Limited merits a SUBSCRIBE, anchored by clear category leadership and an unshakeable electrification tailwind in the Indian automotive supply ecosystem.
Core Rationale:
- Robust Growth Trajectory: Revenue expanded strongly from Rs. 3,472 crore in FY25 to Rs. 4,564 crore in FY26 (31.4% YoY growth, representing a 27.6% 2-year CAGR). Profit After Tax (PAT) expanded from Rs. 354 crore to Rs. 397 crore, with EBITDA margins maintaining a steady and healthy 15.6% – 15.7% range.
- EV Dominance & Powertrain Agnosticism: Holding ~70% market share in the fast-growing electric 2W/3W harness segment and with 95% of its automotive portfolio powertrain-agnostic, Dhoot is structurally positioned to capture India's 2W electrification surge (projected to expand from 6.6% to 25-30% penetration by FY31) without needing to defend a legacy ICE-only product book.
- Attractive Valuation Matrix: At peer diluted P/E multiples ranging from 43x to 75x (composite peer average of ~55x) against Dhoot's FY26 diluted EPS of Rs. 24.40, there is reasonable room for value creation and upside even at a conservative discount relative to industry peers.
Frequently Asked Questions (FAQs)
1. What is the issue size and structure of Dhoot Transmission IPO?
The IPO aggregates to Rs. 3,811.21 Crore at the upper price band, comprising a Fresh Issue of Rs. 499.10 Crore and an Offer for Sale (OFS) of Rs. 3,311.21 Crore (3,52,18,047 shares).
2. What are the key subscription dates for Dhoot Transmission IPO?
The issue opens on August 10, 2026, and closes on August 12, 2026. The allotment basis will be finalized on August 13, 2026, and shares will commence trading on BSE & NSE on August 17, 2026.
3. What is the retail lot size and minimum application amount?
The minimum bid lot size is 17 shares. At the upper price band of Rs. 871, 1 lot requires a minimum application amount of Rs. 14,807. Retail investors can apply up to 13 lots (221 shares) for Rs. 1,92,491.
4. What employee discount is offered in this public issue?
Eligible employees are offered a discount of Rs. 80/- per equity share under the employee reservation portion.
5. Where are the new manufacturing facilities being set up?
Dhoot Transmission is allocating Rs. 150 crore from fresh issue proceeds to establish new wiring harness manufacturing plants at Jhajjar (Haryana) and Hosur (Tamil Nadu).
DISCLAIMER & DISCLOSURES
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
