Dhoot Transmission IPO is a book-built issue of ₹3,066.89 crores, comprising a fresh issue of 1.61 crore shares aggregating to ₹1,400.00 crores and an offer for sale of 1.91 crore shares aggregating to ₹1,666.89 crores. The IPO will open for subscription on Aug 10, 2026, and close on Aug 12, 2026. The allotment is expected to be finalised on Aug 13, 2026, while the tentative listing on NSE and BSE is scheduled for Aug 17, 2026. The price band has been fixed at ₹829 to ₹871 per share, with a lot size of 17 shares.
Retail investors need a minimum investment of ₹14,807 (17 shares) based on the upper price band. Axis Capital Ltd. is the book-running lead manager, and Kfin Technologies Ltd. is the registrar to the issue.
For detailed information on the company’s business, financials, risk factors, and the proposed utilisation of proceeds, investors should refer to the Dhoot Transmission IPO Red Herring Prospectus (RHP) before making an investment decision.
Company Overview
Dhoot Transmission Limited is an automotive components manufacturer engaged in the design, development, and production of wiring harnesses, electronic sensors, automotive switches, and other electrical distribution systems. The company supplies its products to leading original equipment manufacturers (OEMs) across the two-wheeler, passenger vehicle, commercial vehicle, off-highway vehicle, and electric vehicle (EV) segments.
The company operates a widespread manufacturing network in India, supported by engineering and research capabilities that enable it to develop customised solutions for its customers. In addition to serving the domestic market, Dhoot Transmission has a growing international presence through exports and overseas manufacturing operations.
With a diversified product portfolio, long-standing customer relationships, and a focus on innovation, Dhoot Transmission is well positioned to benefit from the increasing demand for advanced automotive electrical and electronic systems driven by vehicle electrification and evolving mobility trends.
(Source: RHP)
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 10 to 12 August, 2026 |
| Allotment | Thursday, August 13, 2026 |
| Listing Date | Monday, August 17, 2026 |
| Face Value | ₹2 per share |
| Price Band | ₹829 to ₹871 per share |
| Lot Size | 17 Shares |
| Issue Type | Book Building IPO |
| Sale Type | Fresh capital cum OFS |
| Total Issue Size | 3,52,18,047 shares (agg. up to ₹3,067 Cr) |
| Fresh Issue | 1,60,80,445 shares (agg. up to ₹1,400 Cr) |
| Offer for Sale (OFS) | 1,91,37,602 shares of ₹2 (agg. up to ₹1,667 Cr) |
| Shareholding Pre-Issue | 18,84,67,612 shares |
| Shareholding Post-Issue | 20,45,48,057 shares |
| Listing Exchange | BSE, NSE |
(Compiled from RHP and market updates)
Industry Context
- India’s automotive industry is expected to expand from 28.2 million units in FY26 to 35–45 million units by FY31, registering a 6–8% CAGR. Growth will be led by rising vehicle ownership, infrastructure development, improving rural demand, and increasing adoption of electric vehicles.
- The two-wheeler segment is projected to remain the largest contributor, growing from 21.7 million units to 30–35 million units at an 8–10% CAGR. Passenger vehicles are expected to increase from 4.6 million units to 5–10 million units, while three-wheelers and commercial vehicles are forecast to grow at 3–5% CAGR and 4–6% CAGR, respectively.
- The industry report expects proposed GST rationalisation, including tax slabs of 5%, 18%, and 40%, to simplify taxation and support demand. Lower tax rates are expected to reduce vehicle prices, support domestic demand, simplify taxation for auto components, and strengthen the overall automotive supply chain.
- Electric vehicle adoption is expected to accelerate significantly, with overall EV penetration projected to rise from 6.9% in FY26 to 28–32% by FY31. Growth will be supported by government incentives, expanding charging infrastructure, increasing OEM investments, and improved model availability across vehicle segments.
- The automotive components industry is expected to benefit from higher vehicle production, increasing localisation, and the shift towards advanced electrical and electronic systems. These trends are likely to drive sustained demand for wiring harnesses, sensors, switches, and other automotive electrical components used across conventional and electric vehicles.
Business Strengths
- The company has established a strong presence in India’s two-wheeler and three-wheeler wiring harness segment, supported by a comprehensive portfolio of wiring harnesses, sensors, switches, and other automotive electrical components.
- Dhoot Transmission is well placed to capitalise on the growing adoption of electric vehicles, increasing vehicle premiumisation, automation, and connected mobility, which are driving demand for advanced automotive electrical systems.
- The company has built long-standing partnerships with prominent domestic and global original equipment manufacturers across multiple vehicle segments, providing a diversified customer base and stable business opportunities.
- The company has demonstrated steady revenue growth supported by an expanding manufacturing network, operational efficiencies, and the ability to scale production in line with customer demand.
- Dhoot Transmission is led by an experienced management team and supported by strong research and development capabilities, enabling continuous product innovation and helping the company maintain its competitive position in the automotive components industry.
Business Risks
- The company’s revenue is closely tied to the performance of the automotive sector, making it vulnerable to fluctuations in vehicle production and demand.
- A significant portion of revenue is generated from a limited number of OEM customers, and the loss of any major customer could adversely affect the business.
- Changes in the prices of key raw materials such as copper, aluminium, and plastics may impact production costs and profit margins.
- Delays or cost overruns in setting up new manufacturing facilities could affect the company’s growth strategy and operational efficiency.
- The automotive industry is evolving quickly, requiring continuous investment in research, development, and product innovation to remain competitive.
- The company faces intense competition from both domestic and global automotive component manufacturers, which may impact pricing, market share, and profitability.
Financial Performance
Dhoot Transmission Limited- Financials (₹ in Million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 45,249.55 | 34,448.63 | 27,977.26 |
| Total Assets | 41,148.25 | 23,362.34 | 17,116.98 |
| EBITDA | 7,109.89 | 5,909.63 | 5,123.98 |
| EBITDA Margin (%) | 15.71% | 17.15% | 18.31% |
| Profit After Tax (PAT) | 3,968.42 | 3,538.87 | 2,987.48 |
| Return on Equity (ROE) | 16.30% | 35.60% | 39.88% |
| Return on Capital Employed (ROCE %) | 19.14% | 29.66% | 33.56% |
(Source: RHP)
Key Ratios & Metrics
| KPI | Mar 31, 2026 | Mar 31, 2025 |
|---|---|---|
| Return on Equity (ROE) | 16.30% | 35.60% |
| Return on Capital Employed (ROCE) | 19.14% | 29.66% |
| Debt-to-Equity Ratio | 0.35 | 0.78 |
| Return on Net Worth (RoNW) | 16.55% | 36.18% |
| PAT Margin | 8.70% | 10.19% |
| EBITDA Margin | 15.71% | 17.15% |
| Net Asset Value (NAV per share) | ₹149.74 | ₹68.25 |
(Source: RHP)
Objects of the Offer
- Repayment or prepayment of the company’s outstanding borrowings.
- Investment in subsidiaries to help repay or prepay their existing borrowings.
- Setting up new wiring harness manufacturing plants in Jhajjar, Haryana and Hosur, Tamil Nadu.
- Funding future acquisitions and meeting general corporate purposes.
Conclusion
Dhoot Transmission operates in the automotive components industry with a diversified portfolio of wiring harnesses, electrical systems, and electronic components supplied to leading OEMs. The company’s strong customer relationships, expanding presence in the electric vehicle segment, and planned investments in manufacturing capacity and debt reduction support its long-term growth strategy.
Overall, investors should evaluate the company’s business model, financial performance, industry outlook, competitive positioning, valuation, and risk factors in detail, and carefully review the Red Herring Prospectus (RHP) before making an informed investment decision.
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Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.
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