Dhoot Transmission Makes Strong Debut at 38% Premium After 74x IPO Subscription

Dhoot Transmission shares made a strong debut on the exchanges on Monday, listing at a significant premium after the company’s initial public offering (IPO) was subscribed 74.21 times. Shares of the auto components manufacturer listed at ₹1,200 apiece on the NSE, representing a 37.77% premium over the IPO price. The listing performance was better than the roughly 30% premium indicated by grey market expectations. Dhoot Transmission’s strong revenue growth, established presence in wiring harnesses and growing exposure to the electric vehicle (EV) segment provide a favourable long-term growth outlook. However, elevated customer concentration and execution risks remain key factors to monitor. The long-term outlook remains positive, with a hold recommendation and a stop-loss at ₹1,100. The company plans to use proceeds from the fresh issue primarily to repay or prepay certain borrowings, invest in subsidiaries for debt repayment, and establish new wiring harness manufacturing facilities in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion of the funds will also be allocated towards inorganic acquisitions and other strategic initiatives. Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures a range of automotive and electrical components, including wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals. Its products serve a diverse range of sectors and vehicle categories, including two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth-moving equipment, agricultural machinery, medical devices and domestic appliances.