This Bain Capital-backed firm wants to raise ₹1,400cr via IPO
What's the story
Bain Capital-backed Dhoot Transmission Limited has filed its updated Draft Red Herring Prospectus (UDRHP-1) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to raise ₹1,400 crore through a combination of fresh issue and an offer for sale (OFS). The fresh issue will comprise equity shares with a face value of ₹2 each.
Share sales
OFS to see equity shares being sold by promoters
The OFS will see equity shares being sold by promoter and promoter group selling shareholders. BC Asia Investments XV Limited will sell up to 13,191,900 equity shares, while Mangalam Capital Private Limited (formerly known as Mangalam Colise Private Limited) will sell 3,118,833 equity shares. The company intends to use the proceeds mainly for repayment/prepayment of certain outstanding borrowings amounting to ₹493.9 crore, and investment in subsidiaries for repayment/prepayment of their outstanding borrowings amounting to ₹272.58 crore.
Business overview
Leading player in electrical and electronics space
Founded in 1999, Dhoot Transmission is a leading player in the electrical and electronics space. The firm designs, engineers, manufactures and supplies critical wiring harnesses that integrate electronic sensors and controllers. It has a 44.64% market share by value in India's two-wheeler and three-wheeler wiring harness market as of FY25. Its marquee clients include Bajaj Auto, TVS Motor Company, and Honda Motorcycle and Scooter India among others.
Financial growth
Revenue and profit growth during FY23-25
From FY23 to FY25, Dhoot Transmission's revenue from operations grew by 62% from ₹2,125.86 crore to ₹3,444.86 crore. Its profit after tax (PAT) also more than doubled during this period. The firm's wiring harnesses remain the core revenue driver, contributing 78% of FY25 revenue. The IPO lead managers are Axis Capital Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, and 360 ONE WAM Limited.