Dhoot Transmission IPO: ₹918.3 Cr Anchor Funding Secured
By ThePip Desk
Dhoot Transmission Ltd. raises ₹918.3 crore from anchor investors ahead of its ₹3,067 crore IPO. Key investors include BlackRock & ADIA.
Dhoot Transmission Ltd., an auto components manufacturer, secured ₹918.3 crore from anchor investors. This move comes ahead of its Initial Public Offering (IPO), scheduled to open for public subscription from August 10 to August 12.
The company allotted over 1.05 crore equity shares to 72 funds at ₹871 per share. Domestic mutual funds were the largest contributors, investing through 46 schemes from eight fund houses.
Key Anchor Investors
- BlackRock
- Abu Dhabi Investment Authority
- SBI Mutual Funds (via 46 schemes)
- ICICI Prudential Mutual Funds
- HDFC Mutual Funds
- Axis Mutual Funds
- Mirae Asset Mutual Funds
- SBI Life Insurance
- HDFC Life Insurance
- ICICI Prudential Life Insurance
- Axis Max Life Insurance
These domestic mutual funds secured 61.27% of the total anchor book. The overall IPO aims to raise ₹3,067 crore.
IPO Details and Fund Utilization
The IPO’s price band is set between ₹829 and ₹871 per share. It includes a fresh issue of equity shares worth up to ₹1,400 crore and an Offer For Sale (OFS) of up to 1.91 crore equity shares by promoters.
Dhoot Transmission plans to use the fresh issue proceeds for several strategic initiatives. Funds will go towards repaying outstanding borrowings and investing in subsidiaries for debt repayment.
- Establishing new wiring harness manufacturing plants in Jhajjar, Haryana
- Establishing new wiring harness manufacturing plants in Hosur, Tamil Nadu
- Pursuing inorganic acquisitions
- Other strategic initiatives
Founded in 1999, Dhoot Transmission manufactures wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors, and terminals. Shares are expected to debut on the stock market on August 17, with post-issue market capitalization estimated between ₹17,025 crore and ₹17,816 crore.