Auto component maker Dhoot Transmission made a strong debut on the stock exchanges on Monday, with its shares listing at a nearly 38% premium over the IPO price, reflecting robust investor demand for the company’s public offering.
The shares opened at Rs 1,200 per share on the NSE, compared with the issue price of Rs 871. On the BSE, the stock began trading at Rs 1,193.80, giving investors a listing gain of around 37%.
Dhoot Transmission IPO Sees Strong Investor Demand
The strong listing followed heavy demand for Dhoot Transmission’s Rs 3,066.89 crore IPO, which was subscribed 74.21 times during its three-day subscription period from August 10 to August 12.
The qualified institutional buyer (QIB) portion was subscribed 212.92 times, while the non-institutional investor (NII) and retail portions received subscriptions of 51.93 times and 8.12 times, respectively.
The IPO comprised a fresh issue of Rs 1,400 crore and an offer for sale (OFS) worth around Rs 1,666.89 crore. Private equity investor Bain Capital, which held around 55% of the company before the IPO, was among the shareholders selling shares through the OFS.
Auto Components Drive Business
Dhoot Transmission manufactures wiring harnesses and a range of electrical and electronic components used across the automotive industry.
Its product portfolio includes battery packs, sensors, electronic controllers, switches, connectors and power supply systems. The company supplies these components to major automobile manufacturers, including Bajaj Auto, TVS Motor, Honda Motorcycle and Royal Enfield.
Its positioning across multiple automotive segments has helped the company build a diversified customer base while benefiting from increasing demand for sophisticated electrical systems in modern vehicles.
Revenue Grows 31% in FY26
Dhoot Transmission has also recorded strong business growth in recent years.
The company’s revenue increased 31% year-on-year to Rs 4,525 crore in FY26, while profit after tax rose to around Rs 397 crore.
However, profitability remained an area to watch, with the company’s EBITDA margin declining to 15.71% in FY26 from 18.31% in FY24. The margin pressure comes even as the company continues to expand its operations and product portfolio.
EV Business Emerges as Key Growth Driver
Dhoot Transmission’s electric vehicle business represents another important growth opportunity for the company.
Electric vehicles generally require a greater number of wiring and electrical components compared with conventional internal combustion engine vehicles. This creates an opportunity for component manufacturers with established capabilities in wiring harnesses, electrical systems and electronic components.
As India’s EV adoption continues to expand, Dhoot Transmission’s exposure to the segment could provide an additional growth avenue alongside its existing automotive business.
Outlook
Dhoot Transmission’s strong stock market debut highlights investor confidence in its growth prospects, diversified automotive customer base and increasing exposure to electric mobility. While the company’s revenue and profit have expanded significantly, maintaining healthy margins will remain important as it scales. Its presence across conventional and electric vehicle components could position the company to benefit from the broader transformation of India’s automotive industry.
