Dhoot Transmission Sets IPO Price Band at Rs 829–871; Issue To Open on Aug 10

New Delhi: Auto components maker Dhoot Transmission Ltd on Tuesday fixed a price band of Rs 829-871 per share for its Rs 3,067-crore Initial Public Offering (IPO), which will open for public subscription on August 10.

The initial share sale will conclude on August 12, while the bidding for anchor investors will take place on August 7, according to a public announcement.

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 Limited, 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 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 its stock market debut on August 17.

Founded in 1999 by Rahul Dhoot 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.

The company has reserved 50 per cent of the offer for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs) and the remaining 35 per cent for retail investors.

Equity shares aggregating up to Rs 6 crore have been reserved for eligible employees, who will get a discount of Rs 80 per share on the offer price.

Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory, SBI Capital Markets and 360 ONE WAM are the book-running lead managers to the issue, while KFin Technologies is the registrar.

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