Dhoot Transmission Shares List At 38% Premium Over IPO Price On NSE

Mumbai, August 17: Dhoot Transmission shares made a strong debut on the stock exchanges on Monday, listing at a premium of nearly 38% over the IPO price after the company’s ₹3,067-crore public issue received overwhelming investor demand. The auto components maker’s shares opened at ₹1,200 apiece on the NSE, representing a 37.77% premium over the issue price of ₹871. On the BSE, the stock debuted at ₹1,193.80, marking a 37.06% premium. 

The IPO was subscribed 74.21 times, underlining strong demand from investors ahead of the company’s market debut. Following the listing, the company’s market valuation stood at Rs 23,487.23 crore. 

Dhoot Transmission IPO Listing 

The company’s IPO comprised a fresh issue and an offer for sale, with the price band fixed at ₹829-871 per share. Dhoot Transmission had also raised ₹918.3 crore from anchor investors, with BlackRock, Abu Dhabi Investment Authority and SBI Mutual Fund among the institutional participants. 

Ahead of the listing, the issue had attracted bids worth significantly more than the shares on offer, with the strong demand reflecting investor interest in the company’s position in the automotive components market. 

Analysts remained positive on Dhoot Transmission’s longer-term prospects but flagged valuation and execution risks following the sharp listing gains. 

The established position in wiring harnesses and increasing exposure to electric vehicles provide a favourable long-term growth outlook. However, they highlighted customer concentration and execution risks. 

How Dhoot Transmission Plans To Use IPO Funds 

The company plans to deploy proceeds from the fresh issue towards repayment or prepayment of outstanding borrowings and investment in subsidiaries for debt reduction. It also plans new wiring harness facilities at Jhajjar in Haryana and Hosur in Tamil Nadu. A portion of the funds will be go towards strategic initiatives. 

Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission’s products cater to two-wheelers, three-wheelers, commercial and off-road vehicles, agricultural and earth-moving equipment, medical devices and domestic appliances. 

The company’s strong debut comes amid renewed activity in India’s primary market, with investors showing appetite for new-age and manufacturing businesses despite volatility in the broader equity market. The sharp premium achieved on listing also suggests that demand for Dhoot Transmission’s growth story extended beyond the IPO subscription period. 

Source

• PTI inputs