Dhoot Transmission IPO Opens Today; GMP Signals Nearly 30% Listing Premium

The initial public offering (IPO) of Dhoot Transmission opened for subscription on Monday, August 10. The electrical and electronics company has fixed the price band at ₹829-871 per share, with investors required to apply for a minimum lot of 17 equity shares. The public issue will close on Wednesday, August 12.

At the upper end of the price band, retail investors will have to invest a minimum of ₹14,807 for one lot.

Issue Structure and Fund Utilisation

The ₹3,067-crore IPO comprises a fresh issue of shares worth ₹1,400 crore and an offer-for-sale (OFS) of up to 1.91 crore equity shares aggregating ₹1,667 crore. The company plans to utilise the net proceeds from the fresh issue towards repayment of debt, investments in select subsidiaries, setting up a new wiring harness manufacturing plant and general corporate purposes.

Ahead of the issue, Dhoot Transmission raised ₹918.27 crore from 72 anchor investors by allotting 1,05,42,657 equity shares at ₹871 apiece. The anchor book saw participation from SBI Mutual Fund, ICICI Prudential AMC, HDFC Mutual Fund, Bandhan Mutual Fund, Axis Mutual Fund, Nippon India Mutual Fund, Mirae Asset Mutual Fund, Abu Dhabi Investment Authority, Franklin India, Amundi, Pictet Indian Equities and several other institutional investors.

Financials and GMP

The company reported a net profit of ₹396.84 crore on revenue of ₹4,524.96 crore for the financial year ended March 31, 2026. In the previous financial year, it posted a net profit of ₹353.89 crore with revenue of ₹3,472.24 crore. At the upper price band, the company is valued at a market capitalisation of about ₹17,816 crore.

Grey market trends indicate strong investor interest. Dhoot Transmission's IPO was commanding a grey market premium (GMP) of around ₹259 on Monday, suggesting an estimated listing price of about ₹1,130 per share, nearly 30% above the upper end of the price band. However, GMP is an unofficial market indicator and does not guarantee listing performance.

Reservation and Key Dates

Under the allocation structure, 50% of the net offer has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail investors.

Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory (India), SBI Capital Markets and 360 ONE WAM are the book-running lead managers to the issue, while KFin Technologies is the registrar.

The basis of allotment is expected to be finalised after the issue closes, with the shares scheduled to list on the BSE and NSE on August 17.