Dhoot Transmission IPO fully subscribed on Day 2; GMP surges nearly 30%- Moneycontrol.com

Dhoot Transmission's initial public offering (IPO) was fully subscribed on the second day of bidding, receiving 1.17 times subscription by 10:50 am on August 11. The Rs 3,067-crore public issue drew bids for 2,91,38,561 shares against 2,49,56,363 shares on offer, with non-institutional investors (NIIs) subscribing 2.44 times and the retail category 1.22 times. The company has set the price band at Rs 829-871 per share and the offer remains open until August 12.

"Investors must note that the grey market premiums are unofficial and based on market speculation," the company cautioned, noting that such premiums do not guarantee listing gains or reflect company fundamentals.

The public subscription momentum follows a strong anchor placement: ahead of the issue opening, Dhoot Transmission raised Rs 918.3 crore from anchor investors. The anchor book included global and domestic institutional names such as BlackRock, Abu Dhabi Investment Authority and SBI Mutual Fund. Market trackers InvestorGain and IPO Watch reported a grey-market premium (GMP) of around Rs 250 over the upper end of the price band (Rs 871), implying a near-30% premium, although the company highlighted the unofficial nature of such indicators.

Established in 1999 by Rahul Dhoot and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals. Its products serve multiple segments including two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth-moving equipment, agricultural machinery, medical devices and domestic appliances.

The company plans to deploy proceeds from the fresh issue toward repayment or prepayment of certain borrowings and to invest in subsidiaries to help them repay debt. Capital will also fund the establishment of new wiring harness manufacturing facilities in Jhajjar, Haryana, and Hosur, Tamil Nadu. Part of the proceeds has been earmarked for inorganic acquisitions and other strategic initiatives.

• Issue size: Rs 3,067 crore (public issue)
• Anchor proceeds: Rs 918.3 crore
• Price band: Rs 829-871 per share
• Bids received: 2,91,38,561 shares; shares on offer: 2,49,56,363
• Subscription by category (as of 10:50 am, Aug 11): NIIs 2.44x; Retail 1.22x
• Grey-market premium (reported): ~Rs 250 over Rs 871 (near 30%)
• IPO timeline: subscription open Aug 10–12; allotment expected Aug 13; listing scheduled Aug 17

Market watchers will monitor the allotment due on August 13 and the scheduled listing on August 17 to gauge actual listing performance versus the grey-market signals. The company’s stated use of funds—debt reduction, investments into subsidiaries, and new manufacturing capacity in Jhajjar and Hosur—will be scrutinised by investors assessing the balance between leverage reduction and growth capital deployment.

Founded and led by Rahul Dhoot, the company’s diversified product portfolio across multiple vehicle and equipment categories positions it to capture demand from both traditional automotive segments and adjacent markets such as medical devices and domestic appliances. The combination of strong anchor support from institutional investors and early retail and NII interest has set the stage for a closely watched public debut later this month.