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Aug 11 (Reuters) – Bain Capital-backed Dhoot Transmission’s (DHOT.NS), $321 million initial public offering was fully subscribed on the second day of bidding on Tuesday, led by non-institutional and retail investors, as the auto components maker bets on India’s shift to electric vehicles to drive growth.The Chhatrapati Sambhajinagar, Maharashtra-based company received bids for 24.97 million shares, as of 10:40 a.m. IST, against 24.96 million shares on offer, exchange data showed.
Here are key details:
- Non-institutional investors bid for 10.93 million shares, 2.03 times the number of shares set aside for them; retail investors subscribed 1.07 times, while the institutional portion was 6% subscribed
- Dhoot Transmission raised 9.18 billion rupees ($96.22 million) from 72 anchor investors, including BlackRock and Abu Dhabi Investment Authority, ahead of the IPO
- The 30.67 billion rupees IPO comprises a fresh issue of shares worth 14 billion rupees and an offer-for-sale of up to 19.14 million shares by Bain Capital’s BC Asia Investments XV and Mangalam Capital
- The company expects India’s shift to EVs to be its biggest growth driver as these vehicles require greater wiring-harness content than internal combustion engine vehicles, CFO Nitin Kalani told Reuters last week
- The company is expanding its EV-focused product portfolio beyond wiring harnesses to include battery assemblies, on-board chargers, DC-DC converters and charging guns. Its non-harness portfolio currently accounts for 23% of revenue, up from about 18% in fiscal 2024
- Dhoot, which makes wiring harnesses for automotive and industrial applications, gets about a third of its revenue from Bajaj Auto (BAJA.NS), India’s biggest two-wheeler exporter
- Dhoot’s revenue stood at 45.3 billion rupees in fiscal 2026. The company expects annual margins to remain at 15%-16%, broadly in line with current levels
- The IPO has a price band of 829 rupees to 871 rupees per share and will close for subscription on August 12. Shares are expected to begin trading on August 17
($1 = 95.4025 Indian rupees)
Reporting by Surbhi Misra in Bengaluru; Editing by Rashmi Aich.
