Bain Capital-backed Dhoot Transmission Files Revised IPO Papers with Sebi

Dhoot Transmission Files Draft Papers for ₹1,400 Crore IPO

Dhoot Transmission, a leading auto component maker, has filed updated draft papers with the capital market regulator, Sebi, to raise funds through an initial public offering (IPO). The proposed IPO comprises a fresh issue of equity shares worth ₹1,400 crore and an offer for sale (OFS) of up to 1.63 crore equity shares by promoter selling shareholders.

According to the updated draft red herring prospectus (UDRHP) filed on Friday, the OFS will see US-based Bain Capital, through its affiliate BC Asia Investments XV Ltd, offload nearly 1.32 crore equity shares, while Mangalam Capital Pvt Ltd will sell 31.18 lakh shares of the company. The net proceeds from the fresh issue worth ₹493.9 crore will be utilised by the company to repay its debt, while ₹272.58 crore will be invested in subsidiaries – Dhoot Autocomponents, Dhoot Electricals Systems, Dhoot Automotive Systems, and Dhoot Transmission UK Ltd – for repayment of their borrowings.

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The company plans to use funds worth ₹150 crore to set up new wiring harness manufacturing facilities in Jhajjar, Haryana and Shoolagiri, Hosur, Tamil Nadu. The proceeds will also be used for inorganic growth through acquisitions and general corporate purposes.

Dhoot Transmission has filed preliminary papers with the capital markets regulator Sebi through the confidential pre-filing route to raise USD 250 million (about ₹2,258 crore) through an initial public offering. Later, it got Sebi's approval earlier this month to float its maiden public offering.

Founded in 1999, Dhoot Transmission designs, manufactures, and supplies critical wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems, and data cables, delivering application-specific architectures across platforms. The company claims to be among the top two players in India's two-wheeler and three-wheeler wiring harness market, with a 44.64 per cent market share by value in FY25.

Its clients include Bajaj Auto, TVS Motor Company, Honda Motorcycle and Scooter India, and Royal Enfield. On the financial front, Dhoot Transmission's revenue from operations rose 62 per cent to ₹3,444.86 crore in FY25 from ₹2,125.86 crore in FY23, while profit after tax more than doubled from ₹163.91 crore to ₹353.89 crore.

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The company's shares are proposed to be listed on the BSE and NSE. Axis Capital Ltd, Jefferies India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets, and 360 ONE WAM are the book-running lead managers for the IPO.