Shares of Dhoot Transmission are set to make their stock market debut on the BSE and NSE on Monday, August 17, with strong grey-market sentiment pointing to a potentially robust listing.
The company’s Rs 3,066.89 crore initial public offering (IPO), priced at Rs 871 per share, has been commanding a grey market premium (GMP) of around Rs 264. If the trend holds, the stock could potentially list at close to Rs 1,135 per share—roughly 30% above the issue price. However, investors should note that the grey market is unofficial and GMP levels can change before the actual listing.
The IPO was open for subscription from August 10 to August 12 and received an overwhelming response from investors across categories. Overall, the issue was subscribed 74.21 times. The retail portion was subscribed 8.12 times, while institutional demand was particularly strong. The Qualified Institutional Buyers (QIB) category was subscribed a staggering 212.92 times, while the Non-Institutional Investors (NII) segment saw subscription of 51.93 times.
The public issue comprised a fresh issue of 1.61 crore shares worth Rs 1,400 crore and an offer for sale (OFS) of 1.91 crore shares aggregating to Rs 1,666.89 crore.
Axis Capital Ltd. served as the book-running lead manager for the issue, while Kfin Technologies Ltd. acted as the registrar.
Ahead of the IPO, Dhoot Transmission raised Rs 918.27 crore from 72 anchor investors on August 7, 2026. The company allotted 1,05,42,657 equity shares to anchor investors at Rs 871 apiece—the upper end of the IPO price band. Each share has a face value of Rs 2, with the remaining Rs 869 representing the share premium. The strong anchor participation added another positive signal ahead of the public issue.
How Will Dhoot Transmission Use the IPO Proceeds?
The company plans to deploy the IPO proceeds towards strengthening its balance sheet, reducing debt and funding future expansion. Around Rs 464.80 crore of the net proceeds will be used to repay or prepay 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. These funds are expected to help the subsidiaries reduce their debt burden.
Dhoot Transmission has also 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 are aimed at expanding production capacity to cater to growing demand. The remaining proceeds will be used to pursue inorganic growth opportunities, including acquisitions, as well as for general corporate purposes.
Founded in April 1998, Dhoot Transmission is a major player in India’s electrical and electronics (E&E) automotive ecosystem. The company designs, engineers, manufactures and supplies wiring harnesses and electrical distribution systems for automotive and industrial applications.
Its product portfolio spans wiring harnesses, battery packs, sensors, electronic controllers, automotive switches, terminals, connectors and power supply cords. Importantly, its products cater to both internal combustion engine (ICE) and electric vehicle (EV) platforms.
Dhoot Transmission ranks among the top two players in India’s two-wheeler and three-wheeler wiring harness market, with a 41% market share. Its position is even stronger in electric two-wheelers and three-wheelers, where it commands nearly 70% market share in FY26. The company also serves commercial vehicles, off-highway vehicles, agricultural equipment and industrial applications.
One of its key strengths is its positioning for the transition towards electric mobility. Around 95% of its automotive product portfolio is either EV-focused or powertrain-neutral, potentially positioning the company to benefit from long-term trends such as vehicle electrification, premiumisation, connected mobility and automation.
As of March 31, 2026, the company had 2,735 full-time employees across manufacturing, research and development, engineering, sales, finance and corporate functions.
The company delivered strong financial growth in FY26, supported by higher revenue and continued profitability. Dhoot Transmission’s total income rose 31% to Rs 4,563.70 crore in FY26, compared with Rs 3,472.24 crore in FY25. Profit After Tax (PAT) increased 12% to Rs 396.84 crore, from Rs 353.89 crore a year earlier.
The combination of strong IPO subscription, robust institutional demand, a sizeable grey market premium and healthy financial performance has created considerable interest ahead of Dhoot Transmission’s market debut.
