Key Takeaways
- Dhoot Transmission IPO recorded subscription demand exceeding 74 times overall.
- The latest GMP indicates a potential listing price of Rs 1,133.
- Strong institutional demand drove the QIB subscription to nearly 213 times.
- The company plans to use proceeds for debt reduction and expansion.
Dhoot Transmission is set to make its stock market debut on August 17, with its latest grey market premium (GMP) pointing to a potential listing price of Rs 1,133. At the upper IPO price of Rs 871, the implied gain stands at about 30.08%, although the GMP is an unofficial market indicator and does not guarantee the actual listing price.
Dhoot Transmission IPO Sees Strong Subscription Demand
The IPO attracted subscription demand of more than 74 times during its bidding period. Qualified institutional buyers recorded demand of nearly 213 times the shares reserved for them, while the non-institutional investor category was subscribed about 52 times. Retail investors subscribed 8.12 times their allotted portion.
The issue carried a price band of Rs 829 to Rs 871 per share, with a lot size of 17 shares. At the upper price band, a retail investor needed Rs 14,807 to apply for 1 lot. The IPO comprised a fresh issue of 1.61 crore shares worth Rs 1,400 crore and an offer for sale of 1.91 crore shares valued at Rs 1,666.89 crore.
The strong subscription followed an anchor investment of Rs 918.26 crore raised before the IPO opened. The company allotted 10.54 lakh shares to 72 anchor investors at Rs 871 per share.
The latest GMP of Rs 262, recorded on August 17, puts the estimated listing price at Rs 1,133 when added to the upper price band. This represents a potential listing gain of 30.08% over the issue price. The actual debut price, however, will be determined by market trading on the listing day.
Financial Performance And IPO Fund Use
Dhoot Transmission IPO reported total income of Rs 4,563.70 crore in FY26, compared with Rs 3,472.24 crore in FY25. Profit after tax increased to Rs 396.84 crore from Rs 353.89 crore, while EBITDA rose to Rs 710.99 crore from Rs 590.96 crore.
The company operates in the electrical and electronics segment, supplying products including wiring harnesses, battery packs, sensors, electronic controllers, switches, terminals, and connectors. Its products serve both internal combustion engine and electric vehicle platforms.
The fresh issue proceeds are primarily intended for reducing debt and funding business expansion. The company plans to allocate part of the funds toward repayment of borrowings and investment in its subsidiaries. Additional funds will be used for acquisitions and general corporate purposes.
Dhoot Transmission’s listing on the NSE and BSE will now give investors their first opportunity to trade the shares publicly. While the GMP suggests a sizeable premium over the IPO price, the actual market debut may differ depending on demand and prevailing market conditions.
