Dhoot Transmission

Incorporated in 1998 by Rahul Dhoot and headquartered in Pune, Dhoot Transmission Limited designs, engineers, manufactures, and supplies wiring harnesses that integrate electronic sensors, controllers, switches, connectors, junction boxes, high-voltage interconnection systems, and data cables for automotive applications. Its product range extends to battery packs, automotive switches, power cords, and cables serving both internal combustion engine (ICE) and electric vehicle (EV) platforms.

The company operates 22 manufacturing facilities across India, the United Kingdom, Slovakia, and Thailand, supported by engineering and design centers located near major automotive hubs. This global manufacturing footprint enables the company to serve a diversified customer base spanning two-wheelers, three-wheelers, commercial vehicles, off-road equipment, and farm vehicles.

Dhoot Transmission holds an approximately 44.64% market share by value in India's two-wheeler and three-wheeler wiring harness segment as of FY25, placing it among the top two players in the category, and counts marquee OEMs such as Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India, and Royal Enfield among its clients. Two-wheelers contributed the largest share of FY25 revenue at 66.9%, while its EV-specific business has grown rapidly, rising from 8.05% of revenue in FY23 to 25.22% in FY25, reflecting the accelerating electrification of India's two- and three-wheeler fleet.

The company is backed by private equity firm Bain Capital through BC Asia Investments XV Limited, alongside promoter entity Mangalam Capital Private Limited. As of December 2025, Dhoot Transmission employed over 2,681 people, including a dedicated R&D and engineering team. Its long-standing OEM relationships, high customer switching costs once a supplier is qualified for a vehicle model, and integrated in-house manufacturing form the core of its competitive moat.

The Dhoot Transmission IPO is a bookbuilt mainboard issue aggregating up to ₹3,067 crore, comprising a fresh issue of shares worth up to ₹1,400 crore and an offer for sale of up to ₹1,667 crore by promoter and promoter group selling shareholders BC Asia Investments XV Limited and Mangalam Capital Private Limited. The issue is priced in a band of ₹829 to ₹871 per equity share, with a lot size of 17 shares, and will open on August 10, 2026, closing on August 12, 2026, with listing expected on August 17, 2026 on both the BSE and NSE.

Net proceeds from the fresh issue are earmarked primarily for repayment or prepayment of outstanding borrowings, estimated at ₹493.99 crore, along with investment in four subsidiaries for repayment of their borrowings worth ₹272.59 crore, and setting up two new wiring harness manufacturing plants in Jhajjar, Haryana and Shoolagiri, Hosur, Tamil Nadu at an estimated cost of ₹150 crore, with the remainder allocated to inorganic growth and general corporate purposes. The company has delivered strong financial growth, with revenue rising from ₹2,131.58 crore in FY23 to ₹3,472.24 crore in FY25, and profit after tax more than doubling from ₹163.91 crore to ₹353.89 crore over the same period.

At the upper price band, the issue is priced at a post-issue P/E of 44.33 times FY25 earnings, with a Return on Net Worth of 36.18% for FY25 and a Price to Book Value of 12.76 times, indicating a richly-priced issue reflecting the company's scale, market leadership, and marquee client base. Key strengths cited include an established leadership position in India's two-wheeler and three-wheeler wiring harness market, high customer switching costs from qualified OEM relationships, rapid growth in EV-specific revenue, and backing from global private equity firm Bain Capital. Key risks include high dependence on the two-wheeler and three-wheeler auto components cycle, a Debt/Equity ratio of 0.78 reflecting moderate leverage, and the elevated valuation multiple relative to listed auto ancillary peers. Investors may find it useful to benchmark this issue against other recently listed auto component and EV supply chain IPOs when evaluating its relative valuation.