Dhoot Transmission share price makes a bumper debut, stock opens with a 38% premium at ₹1,200 apiece on NSE
Dhoot Transmission shares debuted strongly on 17 August, opening at ₹1,200, up 37.77% from the IPO price of ₹871. The IPO was oversubscribed 74.21 times, raising ₹3,067 crore, with major backing from investors like BlackRock and Abu Dhabi Investment Authority.
Dhoot Transmission share price made a blockbuster debut on the bourses today, Monday, 17 August. On NSE, Dhoot Transmission share price opened at ₹1,200 per share, 37.77% higher than the issue price of ₹871. On BSE, the stock opened at ₹1,193.80 apiece, up 37.06% than the issue price.
The Dhoot Transmission IPO received a strong response from investors, with the initial public offering of the auto components maker subscribed 74.21 times on the last day of bidding on Wednesday.
The ₹3,067-crore IPO received bids for 1,85,19,71,585 shares against 2,49,56,363 shares on offer, according to NSE data.
The Qualified Institutional Buyers (QIBs) category was subscribed 212.92 times, while the portion reserved for non-institutional investors (NIIs) received 51.93 times subscription. The retail investors quota was subscribed 8.12 times.
Ahead of the issue, Dhoot Transmission raised ₹918.3 crore from anchor investors, including BlackRock, Abu Dhabi Investment Authority and SBI Mutual Funds.
The Dhoot Transmission IPO price band was fixed at ₹829– ₹871 per share.
Dhoot Transmission IPO GMP today
Dhoot Transmission IPO GMP today is +258. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Dhoot Transmission share was ₹1,129 apiece, which is 29.62% higher than the IPO price of ₹871.
Considering the grey market performance over the past 15 sessions, the IPO's GMP is showing an upward trend today, suggesting predictions of a robust listing. Throughout this timeframe, the GMP fluctuated between ₹146.00 and ₹276, according to expert analysis.
Dhoot Transmission IPO details
The Dhoot Transmission IPO comprises a fresh issue of equity shares worth up to ₹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 backed by private equity firm Bain Capital, and Mangalam Capital Private Ltd.
The company plans to use the fresh issue proceeds to repay or prepay certain borrowings, invest in subsidiaries to repay debt, and establish new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion of the funds will also be allocated towards inorganic acquisitions and other strategic initiatives.
At the upper end of the price band, Dhoot Transmission is expected to have a post-issue market capitalisation of around ₹17,816 crore, compared with approximately ₹17,025 crore at the lower end.
Axis Capital Ltd. is the book-running lead manager, while KFin Technologies Ltd. is the registrar to the issue.
Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.
Its products serve multiple industries and vehicle segments, including two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers, farm equipment, medical devices and domestic appliances.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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