Dhoot Transmission IPO Subscribed 63% on Day 1

New Delhi: The initial public offering of auto components maker Dhoot Transmission Ltd was subscribed 63 per cent on the first day of bidding on Monday.

The mainboard IPO received bids for 1,56,51,645 shares against 2,49,56,363 shares on offer, as per the NSE data.

The category for non-institutional investors was subscribed 1.09 times. The retail quota was booked 74 per cent, while the Qualified Institutional Buyers (QIBs) segment was subscribed 6 per cent.

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

The Rs 3,067-crore 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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