Dhoot Transmission Launches 3,067-Crore IPO for Expansion

Dhoot Transmission Ltd announced a 3,067-crore rupee initial public offering opening for public subscription on August 10 and closing on August 12. The IPO features a price band of 829 to 871 rupees per share and consists of a 1,400-crore rupee fresh issue alongside an offer for sale of approximately 1.91 crore shares by promoters Mangalam Capital Private Ltd and BC Asia Investments XV Ltd, a Bain Capital entity.

The company intends to use the fresh proceeds to retire 766 crore rupees in debt, including 465 crore rupees in primary debt and 301.77 crore rupees in subsidiary borrowings. Additionally, the firm will invest 150 crore rupees to establish new wiring harness manufacturing plants in Jhajjar, Haryana, and Shoolagiri, Hosur, Tamil Nadu, and pursue unspecified acquisitions.

Founder Rahul Dhoot stated that electric vehicles are not cannibalizing internal combustion engine sales in India but are instead driving revenue growth through higher content per vehicle. Chief Financial Officer Nitinkumar Kalani noted that the revenue impact of electric vehicles is significantly higher per unit than traditional engines. CEO Yash identified customer concentration as a primary risk the company aims to mitigate through its current expansion efforts.