Dhoot Transmission IPO Subscribed 3.94x; GMP Suggests 29% Premium
By IPO Desk
Dhoot Transmission IPO sees strong demand, subscribed 3.94 times by Day 2. Non-institutional investors lead the surge. GMP indicates a potential 29% listing premium.
The Dhoot Transmission initial public offering (IPO) saw a subscription of 3.94 times by the close of its second day, August 11. This book build issue, valued at ₹3,067 crore, opened on August 10 and is set to conclude on August 12.
Key Subscription Figures
- Non-institutional investors subscribed 10.62 times.
- Retail investors saw a 2.97 times subscription.
- Qualified institutional buyers recorded a 0.50 times subscription.
The Grey Market Premium (GMP) for Dhoot Transmission stood at ₹255 on Wednesday morning. This figure suggests a potential listing at a 29% premium above the issue price of ₹871.
Purpose of Fresh Issue Proceeds
Dhoot Transmission plans to utilize the ₹1,400 crore fresh issue component for several strategic objectives.
- Repaying existing borrowings.
- Establishing new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu.
- Funding inorganic growth through acquisitions.
- General corporate purposes.
Expert Recommendations and Company Strength
Analysts from Anand Rathi and ICICI Direct have recommended subscribing to the IPO for the long term. Dhoot Transmission specializes in designing, manufacturing, and supplying wiring harnesses and electrical distribution systems for automotive and industrial applications.
Anand Rathi highlighted the company’s robust standing within India’s automotive and electric vehicle (EV) ecosystem. The firm also noted Dhoot Transmission’s leadership in two-wheeler and three-wheeler wiring harnesses, holding over 70% market share in three-wheelers, alongside its sustained customer relationships.
ICICI Direct identified Dhoot Transmission as a quality franchise poised to benefit from premiumization and electrification trends. The brokerage justified the company’s valuation, approximating 45 times P/E and 4 times P/S based on FY26 earnings.
IPO Timeline
Share allotment for the IPO is scheduled for August 13. Following this, shares will be credited to demat accounts and refunds processed on August 14. The shares are anticipated to list on the BSE and NSE on August 17.