- Dhoot Transmission IPO opens at Rs 829-871 with a grey market premium around Rs 259
- IPO size is Rs 3,066.89 crore, open for subscription from August 10 to August 12
- Company holds 70% market share in electric two- and three-wheeler wiring harnesses
Dhoot Transmission IPO GMP, Grey Market Premium Today: The Dhoot Transmission IPO has opened with a number that is hard for investors to ignore. The company's shares are commanding a grey market premium (GMP) of around Rs 259. At the upper end of the IPO price band of Rs 871, that points to a possible listing gain of nearly 30 per cent. On paper, that means a share could debut at around Rs 1,130 if the grey market signal holds.
But there is a catch. GMP is unofficial. It can change before listing and does not guarantee what the stock will actually do once it hits the exchanges.
Dhoot Transmission IPO: Should Investors Apply?
The Rs 3,066.89-crore IPO opened for subscription on August 10 and will remain open until August 12. The price band has been fixed at Rs 829-871 per share.
The issue has also received a strong institutional push. Dhoot Transmission raised Rs 918.27 crore from 72 anchor investors ahead of the IPO. The shares were allotted at Rs 871 apiece, the top end of the price band.
This has added to the positive sentiment around the issue. But the bigger story is not just the listing-day buzz. It is the business Dhoot Transmission is trying to build around India's shift towards electric vehicles.
Dhoot Transmission's EV Play
Dhoot Transmission makes wiring harnesses and other electrical and electronic components used in vehicles. Its portfolio includes wiring harnesses, battery packs, sensors, electronic controllers, switches, terminals and connectors. These products are used in both conventional petrol and diesel vehicles and EVs.
That gives the company an interesting position. It does not have to bet entirely on one type of vehicle. At the same time, it can benefit as electric mobility expands.
The company is already a major player in wiring harnesses for two-wheelers and three-wheelers. It has a 41 per cent share of this market, according to the IPO details. Its presence is even stronger in electric two- and three-wheelers, where it held nearly 70 per cent market share in FY26.
Around 95% of its automotive product portfolio is either EV-focused or powertrain-neutral. Dhoot Transmission is also expanding beyond wiring harnesses into areas such as battery assemblies, DC-DC converters, onboard chargers and charging guns.
Dhoot Transmission: Strong Numbers
The company's total income rose 31 per cent to Rs 4,563.70 crore from Rs 3,472.24 crore in FY25. Profit after tax increased 12 per cent to Rs 396.84 crore from Rs 353.89 crore. The IPO money is also expected to be put to work.
About Rs 464.80 crore will go towards repaying or prepaying certain borrowings. Another Rs 301.77 crore is earmarked for investments in subsidiaries to help them reduce debt. The company also plans to spend Rs 150 crore on new wiring harness manufacturing facilities in Jhajjar, Haryana, and Shoolagiri, Hosur, Tamil Nadu.
Some funds will be used for acquisitions and general corporate purposes. "Dhoot Transmission's public issue arrives with strong backing from global investors and a robust grey market premium signaling nearly 30% listing gains," said Abhishek Bhilwaria, Partner at BhilwariaFinserv.
He believes the company's position in the electric vehicle supply chain makes the IPO particularly interesting. "As a critical component supplier deeply integrated into India's expanding electric vehicle supply chain, the company offers a compelling mix of short-term momentum and long-term structural upside," he said.
Bhilwaria also sees the valuation as reasonable compared with listed peers. "Retail and institutional investors looking to participate in the domestic manufacturing boom should find the valuation reasonable relative to listed peers, making it a highly attractive addition to growth-focused portfolios," he said.
If your goal as an investor is listing gain, the GMP certainly makes the IPO look attractive. But investors should not treat the Rs 259 GMP as a promised return.
For long-term investors, the EV opportunity is perhaps more important. Brokerages have also been broadly positive. AnandRathi has assigned a "Subscribe for Long Term" rating, while Ventura Securities has recommended subscribing to the issue.
[Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation or a guarantee of returns.]
