Dhoot Transmission's Rs 3,066.89 crore initial public offering (IPO) is set to make its market debut today, with a grey market premium (GMP) suggesting a potential listing at Rs 1,135 per share, approximately 30% above the issue price of Rs 871. The IPO, which was open from August 10 to August 12, received an overwhelming subscription of 74.21 times, reflecting strong investor interest.
The IPO's retail portion was subscribed 8.12 times, while the Qualified Institutional Buyers (QIB) category saw a staggering 212.92 times subscription. Non-Institutional Investors (NII) also showed robust interest with a 51.93 times subscription. The public issue included a fresh issue of 1.61 crore shares worth Rs 1,400 crore and an offer for sale (OFS) of 1.91 crore shares totaling Rs 1,666.89 crore.
Ahead of the IPO, Dhoot Transmission raised Rs 918.27 crore from 72 anchor investors on August 7, 2026, by allotting 1,05,42,657 equity shares at Rs 871 each. The substantial anchor participation added positive momentum to the public issue.
The proceeds from the IPO will be used to strengthen the company's balance sheet, reduce debt, and fund future expansion. Specifically, Rs 464.80 crore will be used to repay or prepay certain borrowings, while Rs 301.77 crore will be infused into subsidiaries. Additionally, Rs 150 crore is earmarked for new wiring harness manufacturing facilities.
Founded in April 1998, Dhoot Transmission is a key player in India's automotive electrical and electronics ecosystem, with a strong focus on electric vehicles. The company reported a 31% rise in total income to Rs 4,563.70 crore in FY26, with a Profit After Tax (PAT) increase of 12% to Rs 396.84 crore.
Background
Dhoot Transmission's strong market debut is indicative of the growing investor confidence in the automotive electronics sector, particularly as the industry shifts towards electric vehicles. The company's strategic positioning and robust financial performance have made it an attractive prospect for investors.
As Dhoot Transmission enters the market, investors will be watching closely to see if the anticipated premium materializes, reflecting the strong demand and financial performance that have characterized its IPO journey.
