An electrical and electronics company that supplies wiring harnesses to nearly every major Indian two-wheeler and three-wheeler maker plans to raise Rs 3,066.89 crore via a mainboard listing on BSE and NSE.
Dhoot Transmission Ltd. (DTL), a leader in wiring harnesses for the 2W, 3W and EV segments, opens for subscription on August 10 with the issue closing on August 12.
Dhoot Transmission Ltd. (DTL) is in the business of moving electricity around vehicles. That sounds simple, but every ICE motorcycle, electric scooter, three-wheeler and increasingly complex feature-rich vehicle depends on a maze of wires, connectors, sensors and switches to work. That is where Dhoot comes in. It designs, engineers and manufactures the wiring harnesses that stitch a vehicle’s electrical brain together.
The company’s product basket is deeper than the “wire harness” label suggests. Alongside harnesses, DTL makes battery packs, switches, ABS and lean angle sensors, USB chargers, light control modules, junction boxes, high-voltage interconnection systems and data cables. It is developing new products like side stand and temperature sensors. Its customer set spans two-wheelers, three-wheelers, commercial vehicles, off-highway vehicles, and farming and industrial equipment.
Dhoot’s market position is its biggest story. It is among the top two players in India’s 2W and 3W wiring harness market, with a 41% share by value in FY26. In the electric 2W and 3W segment, its share is close to 70% — a near-monopoly position at a time when India’s EV push is accelerating.
Around 95% of Dhoot’s auto product portfolio is either EV-focused or powertrain-neutral — meaning the same products work across internal combustion, hybrid and battery-electric vehicles. That gives it insurance against powertrain shifts. The company also focuses on the premium motorcycle segment (150cc and above), where kit value per vehicle is higher and margins are stronger. The premium motorcycle segment is projected to grow at 6-9% CAGR through FY31, versus 4-6% for the broader ICE motorcycle industry.
Scale is a big competitive moat here. DTL runs 23 manufacturing facilities in India and abroad, with 2 more under construction. It also operates three engineering and design centres and seven warehouses. This footprint gives it proximity to nearly every major automotive cluster in India and access to key global markets.
As of March 2026, headcount stood at 2,735 payroll employees and 9,298 contract workers — a heavy operational base typical for a manufacturing business at this scale.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 10, 2026 |
| Issue Closes | August 12, 2026 |
| Listing (Tentative) | August 17, 2026 (BSE, NSE) |
| Price Band | Rs 829 – Rs 871 per share |
| Face Value | Rs 2 |
| Issue Size | Rs 3,066.89 crore |
| Fresh Issue | Rs 1,400.00 crore (approx. 1.61 cr shares) |
| OFS | Rs 1,666.89 crore (1.91 cr shares) |
| Lot Size | 17 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,807 |
| Post-IPO Market Cap | Rs 17,815.53 crore |
| IPO Constitutes | 17.21% of post-IPO equity |
| BRLMs | Axis Capital, Jefferies, Kotak Mahindra Capital, Nomura, SBI Capital, 360 ONE WAM |
| Registrar | KFin Technologies Ltd. |
From the fresh proceeds, Rs 464.80 crore is earmarked for repayment or prepayment of borrowings, Rs 301.77 crore for clearing debt in subsidiaries, Rs 150 crore for capex on a new wiring harness manufacturing plant, and the balance for inorganic growth and general corporate purposes. Post-IPO, the company will be effectively debt-free.
Post-IPO, paid-up equity moves from Rs 37.69 crore to Rs 40.91 crore. Employees get a discount of Rs 80 per share on the reservation portion of Rs 6 crore.
The promoter and selling stakeholder average cost of acquisition is Rs NIL, Rs 4.81 and Rs 480.34 per share. This reflects earlier share issuances between Rs 9.40 and Rs 806.14 (between September 2010 and May 2026) and three bonus issues over the years — 1-for-1 in September 2010, 1-for-1 in March 2016, and 2-for-3 in March 2026.
GMP Watch
Grey market interest has been robust. Dhoot Transmission IPO GMP made a high of Rs 260 on 7 August and a low of Rs 140 on 4 August. On the opening day, GMP stood at around Rs 259, up 29.74% from the upper price band of Rs 871 — suggesting an estimated listing price of around Rs 1,130. IPO Watch
The GMP has trended firmly in the Rs 240-260 zone in the immediate run-up to listing, one of the strongest grey market signals of any recent mainboard IPO. As always, GMP is unofficial, unregulated and can shift quickly — treat it as one data point, not a decision-maker.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 2,799.32 | 3,472.24 | 4,563.70 |
| PAT | 298.75 | 353.89 | 396.84 |
| PAT Margin | 10.67% | 10.19% | 8.70% |
| RoCE | 33.56% | 29.66% | 19.14% |
Revenue has grown from Rs 2,799.32 crore in FY24 to Rs 4,563.70 crore in FY26 — a healthy 63% jump in two years, driven by strong 2W and EV volumes and rising kit value per vehicle.
PAT has climbed from Rs 298.75 crore to Rs 396.84 crore in the same period. Margins, however, tell a more mixed story. PAT margin has slipped from 10.67% in FY24 to 8.70% in FY26, and RoCE has moved sharply lower from 33.56% to 19.14% — reflecting the impact of aggressive expansion (23 plants and counting), higher working capital deployment and investments in new capacity.
Average EPS over three years is Rs 23.78 and average RoNW is 27.06%. At the upper band of Rs 871, the P/E works out to 44.90x on FY26 earnings and 50.35x on FY25 — a rich multiple that reflects the market leadership position and EV story. The issue is priced at a P/BV of 5.82 on pre-IPO NAV and 4.69 on post-IPO NAV of Rs 185.59 per share.
Listed peers Minda Corp, Uno Minda, Motherson Sumi Wiring and Sona BLW trade at P/E multiples of 48.2, 59.5, 43.3 and 63.5 respectively (as of August 6, 2026) — putting Dhoot’s ask broadly in the middle of the peer range, though these are not strict apples-to-apples comparisons given Dhoot’s 2W/3W concentration.
Risks to Consider
Margin compression is the most immediate concern. PAT margin has moved lower for two consecutive years, and RoCE has almost halved from FY24 to FY26. Aggressive expansion is one explanation, but investors will want to see margins recover as the new plants ramp up.
Rising trade receivables and contingent liabilities of Rs 60.05 crore raise working-capital and balance-sheet flags worth checking in the RHP.
Customer concentration in the 2W and 3W segment is meaningful. A slowdown in Indian two-wheeler demand, or a shift by a single major OEM to a different supplier, could hit revenues.
Global operations bring currency exposure and geopolitical risk, particularly for the international manufacturing facilities.
The three bonus issues over the years and the wide range in promoter acquisition costs (Rs NIL to Rs 480 per share) are dilution dynamics worth understanding.
Finally, dividend has been paid only for FY24 (5%) and skipped thereafter — investors looking for yield should note this.
The price point
Dhoot Transmission is one of the clearer investable stories in the Indian auto ancillary space. Market leadership in a large and growing segment (2W and 3W wiring harnesses), a near-monopoly in electric 2W and 3W, a global manufacturing footprint of 23 plants, and 95% of the portfolio EV-ready or powertrain-neutral — this is a company positioned for the transition India’s auto industry is going through.
Post-IPO, the company will be effectively debt-free, which should ease finance costs and support bottom-line growth. The Rs 918 crore anchor book with 72 marquee institutions gives the issue strong institutional backing.
Priced at 44.90x FY26 and 50.35x FY25, the issue looks fully priced but not out of line with peers. A GMP of Rs 240-260 suggests a listing gain of nearly 28-30% if that holds, though grey market signals can fade fast.