Dhoot Transmission IPO: Shares Debut with 38% Premium on NSE
Robotic arm integrates wiring harness into electric vehicle chassis on an assembly line.
Key Highlights
Dhoot Transmission lists on NSE at Rs 1,200, a 38% premium over its IPO price. Analysts offer mixed advice: hold for long-term growth or book partial profits.
Dhoot Transmission shares opened with a 38% premium, listing at Rs 1,200 on the . The Rs 3,067-crore was oversubscribed by 74.21 times, priced at Rs 871.
Holding or Selling?
For those allotted shares, analysts have split advice.
- Shivani Nyati, Head of Wealth at Swastika Investmart, recommends holding for the long term.
- Nyati cited strong revenue growth and EV segment exposure, but warned of customer concentration and execution risks.
- She set a stop-loss at Rs 1,100.
Market expert Mahesh M. Ojha offered a similar nuanced view.
- Short-term investors should consider booking partial profits.
- Medium to long-term investors can hold, citing the company’s EV-led product mix improvement and capacity expansion.
- Ojha suggested new investors wait for price stabilization before accumulating.
Behind the Listing
Dhoot Transmission produces auto components like wiring harnesses, electronic sensors, and automotive switches. These products serve various vehicle types and other industries.
The company plans to use the IPO proceeds for several key initiatives:
- Debt repayment.
- Investment in subsidiaries.
- Setting up new manufacturing plants.
- Inorganic acquisitions.