Dhoot Transmission's initial public offering (IPO) has entered its second day of bidding with strong interest in the grey market. The latest Grey Market Premium (GMP) indicates a potential listing gain of nearly 29%, making it one of the closely watched public issues in the primary market.
While the unofficial market sentiment remains positive, investors are also evaluating the company's valuation, financial performance, electric vehicle (EV) growth prospects and key business risks before making an investment decision.
Dhoot Transmission IPO details
The Rs 3,066.89 crore IPO opened for subscription on August 10, 2026, and will close on August 12, 2026.
IPO Highlights
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Price Band: Rs 829–871 per share
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Lot Size: 17 shares
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Minimum Investment: Rs 14,807 (at the upper price band)
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Issue Type: Fresh issue of Rs 1,400 crore and Offer for Sale (OFS) worth Rs 1,666.89 crore
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Expected Listing: August 17, 2026
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Stock Exchanges: NSE and BSE
Dhoot Transmission IPO GMP today
The latest Grey Market Premium (GMP) stands at Rs 250.
Based on the upper issue price of Rs 871, the current GMP indicates an estimated listing price of around Rs 1,121, translating into a potential listing gain of nearly 29% if the premium remains stable.
However, investors should remember that GMP reflects unofficial market sentiment and does not guarantee the actual listing price.
Subscription status after Day 1
The IPO received a moderate response on the opening day.
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Overall subscription: 0.62 times
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Retail investors: 0.76 times
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Non-Institutional Investors (NII): 1.02 times
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Qualified Institutional Buyers (QIB): 0.06 times (excluding anchor investors)
Market participants will closely watch institutional participation during the remaining subscription period.
What does Dhoot Transmission do?
Dhoot Transmission is an automotive electrical and electronics manufacturer supplying components to leading automobile manufacturers.
Its product portfolio includes:
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Wiring harnesses
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Electrical distribution systems
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Battery packs
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Electronic controllers
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Automotive switches
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Connectors
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Sensors
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High-voltage electrical systems
The company serves both internal combustion engine (ICE) and electric vehicle (EV) manufacturers.
Wiring harnesses remain its largest business segment, contributing a significant share of total revenue.
Strong EV growth supports long-term outlook
Electric vehicles continue to be a major growth driver for the company.
The company has steadily increased its revenue contribution from EV-related products and is expanding into higher-value components such as:
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High-voltage wiring systems
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Battery pack interconnects
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On-board chargers
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DC-DC converters
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Battery junction box systems
As vehicle electrification accelerates, demand for advanced electrical components is expected to increase, creating long-term growth opportunities.
Financial performance
Dhoot Transmission has reported consistent revenue and profit growth over the last three financial years.
Key financial trends include:
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Strong revenue growth
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Rising EBITDA
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Higher net profit
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Expansion in EV business
However, profitability margins have gradually declined during the same period, indicating increasing cost pressures.
Lower EBITDA and profit margins remain one of the key concerns highlighted by market analysts.
How will the IPO proceeds be used?
Funds raised through the fresh issue will primarily be used for:
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Repayment and reduction of existing debt
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Funding subsidiaries to repay borrowings
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Setting up new manufacturing plants
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Capacity expansion
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Potential acquisitions
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General corporate purposes
The expansion plans are expected to strengthen the company's manufacturing capabilities and support future growth.
Is the IPO fairly valued?
At the upper price band, Dhoot Transmission is valued at approximately 45 times FY26 earnings.
Although the valuation is not considered inexpensive, several market analysts believe it is justified considering the company's:
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Strong market position
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Leadership in wiring harnesses
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EV-focused product portfolio
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Revenue growth
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Long-term industry outlook
Key risks investors should consider
Despite positive growth prospects, investors should also evaluate the associated risks.
Major concerns include:
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High dependence on a limited number of customers
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Exposure to raw material price fluctuations
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Declining operating margins
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Execution risks related to expansion projects
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Rich valuation compared to some industry peers
Diversifying its customer base and maintaining profitability will remain important for long-term growth.
Should you subscribe to the Dhoot Transmission IPO?
The IPO offers attractive opportunities for both listing gain seekers and long-term investors.
A strong grey market premium indicates healthy market sentiment, while the company's leadership in automotive electrical systems and increasing EV exposure provide long-term growth potential.
However, investors should avoid relying solely on GMP while making investment decisions. Business fundamentals, valuation, customer concentration, margin trends and execution capabilities should also be considered before applying.
Overall, the issue appears attractive for investors with a medium to long-term investment horizon, while short-term listing gains remain dependent on prevailing market conditions.
Key Highlights
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Dhoot Transmission IPO entered Day 2 with a GMP of Rs 250.
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The GMP indicates a potential listing gain of nearly 29%.
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The IPO closes on August 12, with listing expected on August 17.
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Day 1 subscription stood at 0.62 times.
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The company is a leading automotive electrical and wiring harness manufacturer.
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Electric vehicle components are emerging as a major growth driver.
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IPO proceeds will be used for debt reduction, expansion and manufacturing capacity.
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Analysts remain positive on the company's long-term prospects despite valuation and margin concerns.
FAQs
1. What is the latest GMP of Dhoot Transmission IPO?
The latest Grey Market Premium (GMP) is Rs 250.
2. What listing gain does the current GMP indicate?
Based on the upper issue price, the GMP suggests a potential listing gain of around 29%, though it is not guaranteed.
3. What is the price band of the IPO?
The IPO price band is Rs 829 to Rs 871 per share.
4. When does the IPO close?
The IPO closes for subscription on August 12, 2026.
5. When is Dhoot Transmission expected to list?
The shares are expected to list on August 17, 2026, on NSE and BSE.
6. What does Dhoot Transmission manufacture?
The company manufactures wiring harnesses, battery packs, connectors, controllers, sensors and other automotive electrical systems.
7. Why is the EV segment important for Dhoot Transmission?
Electric vehicles require more electrical and electronic components, creating long-term demand for the company's products.
8. What are the biggest risks in the IPO?
Key risks include customer concentration, declining margins, raw material cost volatility and execution risks related to expansion.
9. How will the IPO proceeds be used?
Funds will be used for debt repayment, new manufacturing plants, capacity expansion, acquisitions and general corporate purposes.
10. Should investors subscribe to the IPO?
The IPO has received positive recommendations from several brokerages for long-term investment, while the strong GMP also indicates healthy listing expectations. Investors should evaluate both opportunities and risks before investing.
