Dhoot Transmission Announces IPO Price Band of Rs 829-871; Public Offering Opens on August 10.

Auto components maker Dhoot Transmission Ltd has set the price band for its Initial Public Offering (IPO) between Rs 829 and Rs 871 per share, targeting a total capital raise of Rs 3,067 crore. The IPO is scheduled to open for public subscription on August 10 and will close on August 12, with the anchor investor bidding taking place on August 7. This IPO includes a fresh issue of equity shares worth up to Rs 1,400 crore alongside an Offer For Sale (OFS) of 1.91 crore equity shares from its promoters. The funds obtained from the fresh issue will primarily be allocated to debt repayment, investments in subsidiaries, and establishing new manufacturing facilities in Jhajjar, Haryana, and Hosur, Tamil Nadu.

Dhoot Transmission Ltd is expected to achieve a post-issue market capitalization ranging from Rs 17,025 crore to Rs 17,816 crore, depending on the final share price at launch. With a strong lineup of products including wiring harnesses, electronic sensors, and automotive switches for various vehicles and equipment, the company has carved a significant niche in the auto components sector. The shares are slated for their market debut on August 17, attracting attention from various investor segments.

The IPO’s allocations indicate a structured approach, with 50% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors, which allows individual investors to participate meaningfully. A special reservation for eligible employees is also included, with a discounted rate of Rs 80 per share. This approach reflects the company’s commitment to engaging a diverse investor base, and sentiments in the grey market are anticipated to be optimistic, potentially driving interest in the offering. For Indian investors, this IPO represents an opportunity to invest in a growing sector with strategic initiatives that could enhance the company’s market position over time.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)