Now Reading: Dhoot Transmission IPO opens at ₹829-871 per share
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Dhoot Transmission IPO opens at ₹829-871 per share
The ₹3,067 crore IPO of Bain Capital-backed Dhoot Transmission opened for public subscription on Monday with a price band of ₹829-871 per share. The issue includes a fresh issue of ₹1,400 crore…
The Story in Brief
The ₹3,067 crore IPO of Bain Capital-backed Dhoot Transmission opened for public subscription on Monday with a price band of ₹829-871 per share. The issue includes a fresh issue of ₹1,400 crore and an offer-for-sale of ₹1,666.89 crore by promoters. By 10:45 AM on day one, the IPO was subscribed 0.09 times, with retail at 0.11 times and NII at 0.15 times. The grey market premium stood at ₹259, or 30% above the upper price band. The company will use ₹766 crore of fresh proceeds to retire debt, ₹150 crore for new manufacturing facilities, and expects to be debt-free with a cash surplus of ₹900-1,000 crore post-IPO. Anchor investors, including SBI Mutual Fund, BlackRock, and Abu Dhabi Investment Authority, were allotted 1.05 crore shares at ₹871 apiece.
The Indian Opinion
The grey market premium of 30% suggests strong retail appetite, but the IPO's P/E of 42-45x on FY26 earnings is far from cheap. Brokerages call it 'fairly priced' while flagging customer concentration and expansion risks. The real test will be whether the company's debt-free, cash-surplus balance sheet post-IPO can sustain the premium valuation as EV adoption accelerates.
Sources (2): thehindubusinessline.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
