Dhoot Transmissions IPO launches brokers advise pricing range
Dhoot Transmissions Ltd. opened its initial public offering today, setting a price band of ₹829‑₹871 per share and a market lot of 17 shares.
Deal structure and use of proceeds
The IPO totals ₹3,067 crore, split between a fresh issue of ₹1,400 crore and an offer‑for‑sale of about 1.91 crore shares worth ₹1,666.89 crore. The fresh issue will be used to retire ₹766 crore of existing debt, fund two new manufacturing facilities with ₹150 crore, and support general corporate purposes and unspecified acquisitions.
After the offering, the firm expects to carry a cash surplus of roughly ₹900‑₹1,000 crore on a debt‑free balance sheet. It has allocated 50 % of the issue to qualified institutional buyers, 15 % to non‑institutional investors, and the remaining 35 % to retail participants. Eligible employees can apply for up to ₹6 crore of equity shares at a discount of ₹80 per share.
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Anchor investors and pricing metrics
Seventy‑two anchor investors were allotted 1.05 crore shares at the top of the band, ₹871 each, raising ₹918.27 crore. Participants included major mutual funds such as SBI, ICICI Prudential, HDFC and BlackRock, as well as sovereign wealth funds and insurance companies.
At the upper end of the price band, the issue values Dhoot at a FY26 P/E multiple of 42.7 × and an EV/EBITDA multiple of 22.7 ×, according to one brokerage. Other analysts note a P/E of roughly 44‑45 × and a post‑issue market capitalisation near ₹1.78 trillion.
While the valuations sit above the peer average, several brokerages argue the premium reflects the firm’s leadership in the two‑ and three‑wheel wiring‑harness market and its exposure to electric‑vehicle (EV) components.
Brokerage recommendations
SBI Securities recommends a “Subscribe” stance, citing Dhoot’s position in the EV‑friendly 2W segment and its potential to benefit from rising kit value per vehicle. Swastika Investment advises disciplined sizing, noting the issue is fairly priced despite growth prospects.
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Anand Rathi assigns a “Subscribe for Long Term” rating, acknowledging concerns about customer concentration and execution risk but emphasizing market leadership and expanding EV exposure.
The IPO will close on Wednesday, giving investors a narrow window to place orders.
Market participants will watch subscription levels closely before trading begins.
