Dhoot Transmission Files Updated IPO Papers With SEBI To Raise ₹1,400 Crore

Auto component maker Dhoot Transmission, backed by private equity firm Bain Capital, has submitted updated draft prospectus papers to the Securities and Exchange Board of India (SEBI) for its planned initial public offering (IPO), comprising a fresh issue of ₹1,400 crore and a promoter offer for sale (OFS) of up to 1.63 crore equity shares.

The updated draft red herring prospectus was filed on Friday. The company had originally submitted preliminary papers through the confidential pre-filing route on 06 February 2026 and received the regulator's observation letter, which is treated as an approval to proceed with the offering, on 10 May 2026.

Offer Structure

• Fresh issue: ₹1,400 crore

• Offer for sale: Up to 1.63 crore equity shares of face value ₹2 each

Under the OFS component, Bain Capital’s US affiliate, BC Asia Investments XV Ltd, which acquired a 49% stake in Dhoot Transmission in April 2025, plans to offload up to 1.32 crore equity shares with a face value of ₹2 each. Separately, Mangalam Capital Pvt Ltd, earlier known as Mangalam Colise Pvt Ltd, will sell 31.18 lakh equity shares carrying a face value of ₹2 apiece.

The company plans to list its shares on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE).

How The Fresh Issue Proceeds Will Be Used

• Debt repayment by the company: ₹493.9 crore

• Repayment of borrowings at four subsidiaries (Dhoot Autocomponents, Dhoot Electricals Systems, Dhoot Automotive Systems and Dhoot Transmission UK Limited): ₹272.58 crore

• New manufacturing facilities in Jhajjar, Haryana and Shoolagiri, Hosur, Tamil Nadu: ₹150 crore

• Inorganic growth through acquisitions and general corporate purposes: Remainder

About The Company

Dhoot Transmission was founded in 1999 and makes wiring harnesses that integrate electronic sensors, controllers, switches, connectors, junction boxes, high-voltage interconnection systems and data cables for two-wheelers and three-wheelers. The company claims a 44.64% market share by value in the two-wheeler and three-wheeler wiring harness segment in FY25, placing it among the top two players in that category.

Its customer base includes Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India and Royal Enfield.

Financial Performance

Revenue from operations grew 62% to ₹3,444.86 crore in FY25 from ₹2,125.86 crore in FY23. Profit after tax more than doubled from ₹163.91 crore to ₹353.89 crore over the same two-year period.

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Book-Running Lead Managers

Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities India, SBI Capital Markets and 360 ONE WAM are managing the offering.

Sources:

Livemint

Businessline