Dhoot Transmission Files DRHP for IPO With ₹1,400 Crore Fresh Issue

Bain Capital-backed Dhoot Transmission has filed its Updated Draft Red Herring Prospectus (UDRHP-1) with the Securities and Exchange Board of India (SEBI) for an initial public offering comprising a ₹1,400 crore fresh issue and an offer for sale (OFS) component by existing shareholders. The total issue size has not yet been disclosed.

The offer for sale includes up to 1.63 crore equity shares from promoter and promoter group shareholders. BC Asia Investments XV Limited will offload up to 1.31 crore shares, while Mangalam Capital Private Limited plans to sell up to 31.18 lakh shares. The final size of the OFS component will depend on pricing.

According to the filing, Dhoot Transmission intends to utilise the proceeds from the fresh issue primarily towards debt reduction and expansion activities. Around ₹493.9 crore will be used to repay or prepay certain outstanding borrowings of the company, while another ₹272.58 crore will be invested in subsidiaries for repayment of their debt obligations.

The company also plans to allocate ₹150 crore towards establishing new wiring harness manufacturing facilities in Jhajjar, Haryana, and Shoolagiri in Hosur, Tamil Nadu. The remaining funds are expected to support acquisitions and general corporate purposes, with deployment planned across FY27 and FY28.

"The company proposes to use the net proceeds mainly for repayment/prepayment of certain outstanding borrowings, investment in subsidiaries and establishing new manufacturing facilities," the filing stated.

Founded in 1999, Dhoot Transmission designs and manufactures wiring harnesses and associated electrical and electronic systems for automotive and non-automotive applications. The company operates across internal combustion engine (ICE) and electric vehicle (EV) platforms, with products including battery packs, sensors, switches, controllers and automotive cables.

The company said wiring harnesses remain its largest revenue contributor, accounting for approximately 78% of FY25 revenue. It also reported increasing exposure to electric mobility, with EV-related revenue rising from 8.05% of total revenue in FY23 to 25.2% in FY25.

As of December 31, 2025, Dhoot Transmission operated 22 manufacturing facilities, three engineering and design centres and seven warehouses across India and international markets. Four additional facilities are under construction in India.

The company reported revenue from operations of ₹3,444.86 crore in FY25, compared with ₹2,125.86 crore in FY23, while profit after tax rose from ₹163.91 crore to ₹353.89 crore over the same period.

Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), SBI Capital Markets and 360 ONE WAM are acting as book-running lead managers for the issue.