Now Reading: Dhoot Transmission IPO subscribed 36% on day 1, brokerages bullish
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Dhoot Transmission IPO subscribed 36% on day 1, brokerages bullish
Dhoot Transmission IPO subscribed 36% on day 1, brokerages bullish
Dhoot Transmission IPO was 36% subscribed on day one by 3:22 PM, with retail at 0.47 times, non-institutional at 0.55 times, and QIB at just 0.01 times. The auto components maker aims…
The Story in Brief
Dhoot Transmission IPO was 36% subscribed on day one by 3:22 PM, with retail at 0.47 times, non-institutional at 0.55 times, and QIB at just 0.01 times. The auto components maker aims to raise ₹3,067 crore via a fresh issue of ₹1,400 crore and an OFS of ₹1,666.89 crore from promoters BC Asia Investments and Mangalam Capital. Price band is ₹829-871 per share, with a lot size of 17 shares.
Anchor investors including BlackRock and Abu Dhabi Investment Authority subscribed to ₹918.3 crore at ₹871 per share. The company plans to use ₹766 crore from fresh funds to repay debt and ₹150 crore for two new plants, targeting a debt-free balance sheet post-IPO. Brokerages SBI Securities, Swastika Investment, Anand Rathi, and Choice Broking have recommended subscription, citing 95% EV-linked revenue exposure and long-term growth potential.
The Indian Opinion
The hype around Dhoot Transmission's IPO feels overdone. While 36% first-day subscription is decent, it’s hardly a blockbuster, especially for a ₹3,067 crore issue. Brokerages touting 95% EV-linked revenue ignore that the auto parts business is cyclical. The real test won’t be subscription numbers, but the company’s ability to reduce debt from ₹766 crore to zero post-IPO without sacrificing margins. Watch Q3 results for dealer inventory levels.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
