Strong Market Debut For Dhoot Transmission; Shares Jump Nearly 38%

Shares of auto components maker Dhoot Transmission Ltd on Monday listed with a premium of nearly 38% against the issue price of ₹871.

The stock made its market debut at ₹1,193.80, up 37% from the issue price on the BSE. It further jumped 39.23% to ₹1,212.70.

At the NSE, the stock listed at ₹1,200, registering a jump of 37.77%.

The company's market valuation stood at ₹23,487.23 crore.

Dhoot Transmission's initial public offering received 74.21 times subscription on the last day of share sale on Wednesday.

The ₹3,067-crore IPO had a price band of ₹829-871 per share.

The IPO had a fresh issue of equity shares aggregating up to ₹1,400 crore and an offer-for-sale (OFS) of up to 1.91 crore equity shares by promoters BC Asia Investments XV Ltd, an entity of private equity firm Bain Capital, and Mangalam Capital Private Ltd.

The company plans to use the proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings, investment in subsidiaries for debt repayment and setting up of new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu.

A portion of the proceeds will also be used for inorganic acquisitions and other strategic initiatives.

Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures products, such as wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.

Its offerings cater to two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers, farm equipment, medical devices and domestic appliances.