Dhoot Transmission’s Rs 3,067-Cr IPO Receives 74.21 Times Subscription on Final Day

New Delhi: Auto components maker Dhoot Transmission‘s initial public offering received 74.21 times subscription on the last day of share sale on Wednesday.

The Rs 3,067-crore IPO received bids for 1,85,19,71,585 shares against 2,49,56,363 shares on offer, as per NSE data.

Qualified Institutional Buyers (QIBs) bid for 212.92 times the shares reserved for them. The category for non-institutional investors was subscribed 51.93 times and that of retail investors 8.12 times.

Dhoot Transmission has secured Rs 918.3 crore from anchor investors including BlackRock, Abu Dhabi Investment Authority and SBI Mutual Funds.

The price band for the offer is Rs 829-871 per share.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 1,400 crore and an offer-for-sale (OFS) of up to 1.91 crore equity shares by promoters BC Asia Investments XV Ltd, an entity of private equity firm Bain Capital, and Mangalam Capital Private Ltd.

The company plans to use the proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings, investment in subsidiaries for debt repayment and setting up of new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu.

A portion of the proceeds will also be used for inorganic acquisitions and other strategic initiatives.

At the upper end of the price band, the company will command a post-issue market capitalisation of about Rs 17,816 crore, while the valuation at the lower end will be around Rs 17,025 crore.

The company’s shares are expected to make a stock market debut on August 17.

Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures products, such as wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.

Its offerings cater to two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers, farm equipment, medical devices and domestic appliances.

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