Now Reading: Dhoot Transmissions IPO opens today at ₹829-871 a share
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Dhoot Transmissions IPO opens today at ₹829-871 a share
Dhoot Transmissions, backed by Bain Capital, opened its ₹3,067 crore initial public offering for subscription on Monday with a price band of ₹829-871 per share. The issue comprises a fresh share sale…
The Story in Brief
Dhoot Transmissions, backed by Bain Capital, opened its ₹3,067 crore initial public offering for subscription on Monday with a price band of ₹829-871 per share. The issue comprises a fresh share sale of ₹1,400 crore and an offer for sale worth ₹1,666.89 crore by promoters. Of the fresh proceeds, ₹766 crore will be used to retire debt, and ₹150 crore for new manufacturing facilities. Anchor investors, including SBI Mutual Fund, BlackRock and Abu Dhabi Investment Authority, have already taken 1.05 crore shares at ₹871 each. The IPO closes on Wednesday. Brokerages are split: SBI Securities sees strong EV-linked growth, while Anand Rathi and Swastika Investment flag a fairly priced valuation. Most advise subscribing for the long term.
The Indian Opinion
The hype around Dhoot Transmissions being an 'EV play' drowns out a sobering valuation of 43 times FY26 earnings. Most brokerages call it fairly priced, not cheap. Investors should also look past the debt-free balance sheet post-IPO: the company still faces high customer concentration risk. The real test will be the subscription numbers from retail and institutional investors, especially how much oversubscription the QIB portion sees. That number will reveal genuine demand beyond the anchoring effect.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
