Dhoot Transmission IPO Day 2: Issue Subscribed 3.94 Times

New Delhi: Auto components maker Dhoot Transmission‘s initial public offering was subscribed 3.94 times on the second day of the share sale on Tuesday.

The Rs 3,067-crore IPO received bids for 9,83,26,946 shares as against 2,49,56,363 shares on offer, as per details available with the NSE.

Non-institutional investors’ quota received 10.62 times subscription. The category for retail investors was subscribed 2.97 times, while that of Qualified Institutional Buyers (QIBs) was subscribed 50 per cent.

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

The IPO will conclude on August 12. The price band has been fixed at 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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