Dhoot Transmission Ltd IPO
Status: Closed
Overview
IPO date
10 Aug 2026 to 12 Aug 2026
Face value
₹ 2 per share
Price
₹ 829 to ₹871 per share
Issue Size
35,218,047 shares
(aggregating up to ₹ 3066.89 Cr)
(aggregating up to ₹ 3066.89 Cr)
Allotment Date
13 Aug 2026
Listing at
NSE
Issue type
Book Building
Sector
Capital Goods - Electrical Equipment
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T&C*
Strengths vs Risks of Dhoot Transmission Ltd
Know the pros & cons
Strengths
- Established leadership position in India and scaled operations in 2W and 3W wiring harnesses, supported by an extensive and critical product portfolio.
- It's positioned to capitalize on key industry trends, leveraging our differentiated capabilities to deliver sustained growth and value.
- Strong business foundation anchored by a marquee customer base and diversified business mix, enabling sustained growth.
- Strong financial performance.
- Professional & Experienced Management Team, robust R&D team and investor support.
Risks
- The company derived a significant portion of its revenue from operations (Rs. 29,626.97 million, Rs. 23,049.09 million and Rs. 18,052.79 million, i.e. 65.47%, 66.91% and 64.53%, in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively) from the two-wheeler ("2W") automotive sector in India, and Rs. 5,817.77 million, Rs. 4,305.00 million and Rs. 3,275.70 million, i.e. 12.86%, 12.50% and 11.71%, in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, from the three-wheeler ("3W") automotive sector in India, in each case primarily through the sale of wiring harnesses, which constituted 77.08%, 78.00% and 81.93% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any adverse changes in these sectors in India, or in demand for, pricing of or technology relating to wiring harnesses, could adversely impact the company's business, results of operations, cash flows and financial condition.
- The company is dependent on its top five and top ten customers. The company's top ten customers (based on contribution to revenue from operations in Fiscal 2026) contributed 80.93%, 81.81% and 77.90% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any failures to maintain the company's relationship with these customers will have an adverse effect on its business, results of operations, cash flows and financial condition.
- The company does not has firm, long-term volume commitments with OEM customers. Termination, modification or reductions in customer requirements could adversely affect its business, results of operations, financial condition and cash flows.
- The company's business is capital intensive and its incur substantial capital expenditure and working capital requirements and may requires additional financing to meet those requirements, which could have an adverse effect on the company's business, results of operations, cash flows and financial condition.
- The company derived 90.14%, 89.80% and 86.92% of its revenue from contract with customers in Fiscals 2026, 2025 and 2024, respectively, within India as a % of revenue from operations. Any adverse changes in economic or regulatory conditions that negatively affect the demand for the company's products in these markets could affect its results of operations.
- Certain of the company's facilities including at Hosur, Tamil Nadu and Pithampur, Madhya Pradesh currently operate at high-capacity utilization levels and the company may not be able to meet additional demand for its products until the company is able to increase its capacity. Further, if the company's underestimate or overestimate the demand for its products, the capacity utilization of the company's manufacturing facilities may be under-utilized or over-utilized, respectively, which could adversely affect its profitability and manufacturing schedules.
- The company regularly work with hazardous materials, and heavy machinery at its manufacturing facilities and activities in The company's operations can be dangerous, which could cause injuries to people or damage property.
- Failures or disruption of the company's IT systems may adversely affect its business, financial condition, results of operations and prospects.
- The company's Statutory Auditors and Previous Statutory Auditor have reported an emphasis of matter in the audit report for Fiscals ended March 31, 2024.
- The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future, and there can be no assurance that its could not has achieved more favourable terms if such transactions has not been entered into with related parties.
- Pricing pressure from the company's customers, competitive bidding dynamics or its inability to pass on costs to the company's customers, may materially and adversely impact its revenue from operations and profitability.
- The company is subject to strict performance requirements, including, but not limited to, the quality of its products and delivery schedules, and failing to comply (including due to problems with the company's component suppliers) may lead to cancellation of orders, product recalls, product liability claims, warranty claims, litigation and other disputes and claims.
- The company faces competition from both domestic and multinational corporations and there is no assurance that its will be able to successfully compete in the markets the company's currently operate in or those that its plan to expand into. The company's inability to compete effectively could result in the loss of customers and its market share, which could have an adverse effect on the company's business, results of operations, cash flows and financial condition.
- One of the company's Subsidiaries, Dhoot Automotive Systems Private Limited is entitled to an incentive package scheme and any changes to the scheme could adversely affect its financial condition, results of operations and business prospects.
- The company may be subject to labour unrest or stoppages or increased labour costs, and any disputes with its workforce could adversely affect the company's business, cash flows, financial condition and results of operations.
- The continuity of the company's operations and profitability is substantially dependent on the availability and cost of raw materials, including copper, polymers and brass, and components such as connectors, terminals, cables, mouldings and electronic components. In Fiscals 2026, 2025 and 2024, cost of materials consumed accounted for 67.82%, 65.51% and 65.37% of its revenue from operations and 76.20%, 74.86% and 75.85% of the company's total expenses. Any volatility in the prices of these materials or their availability on account regulatory restrictions may adversely impact its business, results of operations and financial condition.
- The company depends on a limited number of suppliers to procure its raw materials and components. In Fiscals 2026, 2025 and 2024, the company's purchases of raw materials from its top ten suppliers for the respective Fiscals contributed to 43.66%, 44.95% and 44.13% of the company's raw material purchases in Fiscals 2026, 2025 and 2024, respectively.
- The company may encounter delays or cost overruns during the completion of the construction of its manufacturing facilities in Nagondapally village, Hosur in Tamil Nadu, India and Chakan in Pune, Maharashtra, India which may adversely affect the company's business, results of operations, financial condition and cash flows.
- Conflicts of interest may arise among the company and other affiliates of Bain Capital in course of the growth of its business. Further, the company has not entered into non-compete or non-solicitation arrangements with its Promoters or Directors (other than the company's Promoter Rahul Radhavallabh Dhoot), and any competing activities undertaken by them could adversely affect its business.
- One of the company's Promoters, i.e. BC Asia Investments XV Limited, does not possess adequate experience in the company's line of business, which may have an adverse impact on the management and operations of the Company.
- The development of technologically advanced products involves a lengthy and expensive process with uncertain timelines and outcomes. Some of the company's product or process development decisions may not meet its expectations, and the company's investment in such projects may be unprofitable.
- A downgrade of the debt ratings of India by a domestic or international rating agency may affect the trading price of the Equity Shares.
- The company is exposed to international supply chain risks and any changes in the political relationship between India and such countries or the implementation of laws and policies affecting supplier relationships could adversely affect its ability to manufacture the company's products, execute its projects and consequently the company's business and results.
- The company has undertaken and may continue to undertake strategic investments, acquisitions and collaborations (including in overseas locations) in the future, which may be difficult to sustain, integrate and/or manage successfully. These may expose the company to uncertainties and risks, any of which could adversely affect its business, financial conditions and result of operations.
- The company is exposed to counterparty credit risk. Its inability to collect receivables on time or at all and defaults in payment from the company's customers could reduce its profits and affect the company's results of operations, financial condition and cash flows.
- As at March 31, 2026, the company derived 50.52%, 28.26%, 14.12% and 5.26% of its installed wiring harness production capacity from the company's manufacturing facilities located in Maharashtra, Tamil Nadu, Haryana and Madhya Pradesh, respectively. Additionally, 100% of its other products capacity are located in Maharashtra. Any disruptions or stoppages at the company's manufacturing facilities or adverse developments including changes in the regulatory framework affecting these states may have a heightened impact on the company's business, cash flows, financial condition and results of operations.
- The company has power, water and fuel requirements and any disruption to power or water sources could increase its production costs and adversely affect the company's results of operations.
- This Red Herring Prospectus contains certain non-GAAP financial measures and other statistical information related to the company's operations and financial performance. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other companies.
- The company's failure to identify and understand evolving industry trends and preferences and to develop new products to meet its customers' demands may materially adversely affect the company's business.
- The company's inability to maintain appropriate levels of inventory to meet the demands of its customers may have an adverse effect on the company's results of operations and financial condition.
- There are outstanding litigation proceedings involving the Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and its Senior Management Personnel. Any adverse outcome in such proceedings may have an adverse impact on the company's reputation, business, cash flows, financial condition and results of operations.
- The scale of the company's business has grown significantly. Its may not be able to sustain such growth rates, and the company's historical growth rates should not be taken as indicative of its future growth prospects.
- The company's business is influenced by government policies and regulations regarding emission standards, which significantly impact its industry.
- The company outsources its logistics requirement to third parties. Any failures by such third parties to deliver their services could have an adverse impact on the company's business, results of operations, financial condition and prospects.
- The company has total borrowings of Rs. 8,413.92 million as of March 31, 2026. If the company fails to comply with financial and other covenants under any of its financing agreements, the company's business, prospects, financial condition, results of operations and cash flows may be materially and adversely affected.
- The company is subject to environmental and safety regulations that may adversely affect its business.
- The company is potentially subject to laws related to anti-corruption, anti-bribery, anti-money laundering, financial and applicable primary and secondary economic sanctions and similar laws of the US and EU or other jurisdictions, and non-compliance with such laws can subject the company to administrative, civil and criminal fines and penalties, all of which could adversely affect its business, prospects, financial condition, results of operations, and cash flows.
- The company is required to obtain certain approvals, licenses, registrations and permissions for operating its business and comply with the terms and conditions of the lease deeds for the manufacturing units located in industrial development areas including the proposed wiring harness manufacturing facility at Shoolagiri, Hosur, Tamil Nadu, India. Any delay or failures to obtain, renew or maintain necessary such approvals, licenses, registrations and permissions and any failures to comply with the terms and conditions of the lease deeds would adversely affect the company's operations.
- The company's assets and operations are subject to certain risks and hazards. Its insurance coverage may not be adequate, and the company may become subject to higher insurance premiums or less favourable terms under its insurance policies.
- Certain of its listed and unlisted peers may have outperformed the Company on certain key performance indicators or financial parameters, and there can be no assurance that the company will be able to match or exceed such performance in the future.
- Failures to implement the company's growth strategies, which include strategic co-investments, and future collaborations, could adversely impact its business, cash flows, financial condition, and results of operations.
- The company's inability to protect or use its intellectual property rights may adversely affect the company's business.
- The company has been unable to locate certain of its historical corporate records. Further, there has been an instance of certain non-compliances under the Companies Act in the past.
- Information relating to the company's operational capacities and the historical capacity utilization of its manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
- The company's funding requirements and the proposed deployment of Net Proceeds has not been appraised by any bank or financial institution or any other independent agency, and its management and Board will have broad discretion over the use of the Net Proceeds.
- The company has not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Offer and the costs to be incurred in relation to such objects of the Offer are based on the quotations received from the vendors or estimates of the management.
- If the company inadvertently infringe upon the intellectual property rights of others, its business and results of operations may be adversely affected.
- The company depends on contract labor for carrying out operations at its manufacturing facilities and any disruption to the availability of contract labor for the company's manufacturing facilities or its inability to control the cost of the company's contract labor could adversely affect its operations. Further, the company may be held responsible for paying wages of such workers, if independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company's results of operations and financial condition.
- The success of the company's business depends on its management team and operational workforce. The company's inability to attract or retain such manpower could adversely affect its business and operations.
- Any further delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have a material adverse impact on the company's financial condition and cash flows.
- Grant of stock options under the company's employee stock option plans may result in a charge to its profit and loss account and, to that extent, reduce the company's profitability and financial condition.
- The company has certain contingent liabilities that has not been provided for in the company's financial statements, and its financial condition could be adversely affected if any of these contingent liabilities materialize. The company also has certain contractual commitments, which may entail cash outflow.
- The company's Promoters, will continue to exercise significant influence on account of its shareholding over the Company even after completion of the Offer and its interests may differ from those of the other shareholders.
- Any unscheduled, unplanned or prolonged disruption to the company's manufacturing and R&D operations could materially and adversely affect its business, financial condition and results of operations.
- A portion of the Net Proceeds is proposed to be utilized for the repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company from a lender who is an affiliate of one of its BRLMs.
- If the company's Net Proceeds to be utilised towards inorganic growth through unidentified acquisitions are insufficient for the cost of its proposed inorganic acquisition, the company may has to seek alternative forms of funding.
- The Company has acquired a parcel of land from one of the members of the Promoter Group, Mangalam Capital Private Limited.
- The Company has unutilised amounts from corporate social responsibility activities and has had shortfalls in CSR expenditure.
- The Company may be required to pay pre-payment penalties in connection with the repayment or pre-payment of certain outstanding borrowings from the Net Proceeds, which may increase the cost of such repayment or pre-payment and reduce the Net Proceeds available for other objects of the Offer.
- If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company's financial risks.
- Certain of the company's immovable properties, where some of its manufacturing units are located, are leased. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be an adverse effect on the company's business, financial condition and operations.
- Proceeds from the Offer for Sale portion of the Offer will not be available to the company. The Selling Shareholders in the Offer for Sale will receive the proceeds of the Offer.
- The company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company's financing arrangements.
- One of the members of the company's Promoter Group, BC Asia Investments XXIII Limited has provided security to certain lenders on its entire shareholding in one of the company's Promoters, BC Asia Investments XV Limited and one of its Promoter Group members, BC Asia Investments XVI Limited. Any exercise of their rights by such lenders could also result in an indirect change in control of the Company and adversely affect its business and financial condition.
- Certain sections of this Red Herring Prospectus contain information from the CRISIL Report which has been exclusively commissioned and paid for by the company in relation to the Offer and any reliance on such information for making an investment decision in this offering is subject to inherent risks.
- The Company has issued Equity Shares during the preceding twelve months at a price that may be below the Offer Price.
- Certain of the company's Promoters, Directors, Key Managerial Personnel and Senior Management Personnel have interests in the Company in addition to their remuneration and reimbursement of expenses.
- The company is exposed to foreign currency exchange rate fluctuations which may have an adverse effect on its results of operations.
Dhoot Transmission Ltd Peer Comparison
Understand the company’s industry standing
Dhoot Transmission Ltd
Minda Corporation Ltd
Uno Minda Ltd
Face Value
2
2
2
Standalone / Consolidated
Consolidated
Consolidated
consolidated
Total Income Rs. Cr.
4524.96
6185.34
19657.59
EPS-Basis
24.4
15.31
20.78
EPS-Diluted
24.4
15.07
20.75
NAV Per Share
149.74
110.58
118.38
P/E-Basic EPS
---
46.49
56.87
P/E-Diluted EPS
---
---
---
RONW(%)
16.55
13.63
17.53
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 10 Aug 2026 & closes on 12 Aug 2026.
Dhoot Transmission Limited was originally incorporated as 'Dhoot Transmission Private Limited' as a Private Limited company under the Companies Act, 1956, pursuant to a Certificate of incorporation dated April 28, 1998, issued by the Assistant Registrar of Companies, Mumbai. Further, upon conversion of Company into a Public Limited company, the name was changed to 'Dhoot Transmission Limited' dated December 4, 2025 issued by the RoC.
Company is one of the largest manufacturers of wiring harnesses for the 2W and 3W segments having the market share in the electrical automobile systems. Company design, engineer, manufacture and supply 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.
Company established a new manufacturing unit in Chennai during FY16, and further setup a new unit in Manesar in 2018. It serve both automotive and non-automotive applications, supporting strict performance, safety and reliability requirements for OEMs. In line with the industry's shift in powertrain, it serve to architectures across customer segments and end markets. It manufacture wiring harnesses and electrical distribution systems for internal combustion engine (ICE) vehicles and electric vehicles (EV).
The Company launched a new product line including cable chargers, connectors, and plugs for electric vehicles, by entering the electric vehicle division in FY19-20. It commissioned a production line having 3 million units annual capacity in Nov'24 and supplied 2.23 million chargers as at Dec.31, 2025. The Company serve a diversified presence across the multiple end markets, extending beyond 2W and 3W into commercial vehicles, (CV), off-highway vehicles (OHW) and farming and industrial parts.
Company has filed a Draft Prospectus with the SEBI & is planning for IPO by issuing 16,310,733 Equity Shares of the Face value Rs 2 each through Offer for sale and by raising funds aggregating to Rs 1400 Cr through fresh issue.
Dhoot Transmission Ltd IPO will close on 12 Aug 2026.
- Established leadership position in India and scaled operations in 2W and 3W wiring harnesses, supported by an extensive and critical product portfolio.
- It's positioned to capitalize on key industry trends, leveraging our differentiated capabilities to deliver sustained growth and value.
- Strong business foundation anchored by a marquee customer base and diversified business mix, enabling sustained growth.
- Strong financial performance.
- Professional & Experienced Management Team, robust R&D team and investor support.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | BC Asia XV (along with its nom | 103650862 | 55 | 87632093 | 42.84 |
| 2 | Rahul Radhavallabh Dhoot | 56293083 | 29.87 | 56293083 | 27.52 |
| 3 | Anupama Rahul Dhoot | 9735833 | 5.17 | 9735833 | 4.76 |
| 4 | Vedika Rahul Dhoot | 5219167 | 2.77 | 5219167 | 2.55 |
| 5 | Vanshika Rahul Dhoot | 5219167 | 2.77 | 5219167 | 2.55 |
| 6 | Rudraansh Rahul Dhoot | 5219167 | 2.77 | 5219167 | 2.55 |
| 7 | Mangalam Capital | 3118833 | 1.65 | --- | --- |
- The company derived a significant portion of its revenue from operations (Rs. 29,626.97 million, Rs. 23,049.09 million and Rs. 18,052.79 million, i.e. 65.47%, 66.91% and 64.53%, in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively) from the two-wheeler ("2W") automotive sector in India, and Rs. 5,817.77 million, Rs. 4,305.00 million and Rs. 3,275.70 million, i.e. 12.86%, 12.50% and 11.71%, in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, from the three-wheeler ("3W") automotive sector in India, in each case primarily through the sale of wiring harnesses, which constituted 77.08%, 78.00% and 81.93% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any adverse changes in these sectors in India, or in demand for, pricing of or technology relating to wiring harnesses, could adversely impact the company's business, results of operations, cash flows and financial condition.
- The company is dependent on its top five and top ten customers. The company's top ten customers (based on contribution to revenue from operations in Fiscal 2026) contributed 80.93%, 81.81% and 77.90% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. Any failures to maintain the company's relationship with these customers will have an adverse effect on its business, results of operations, cash flows and financial condition.
- The company does not has firm, long-term volume commitments with OEM customers. Termination, modification or reductions in customer requirements could adversely affect its business, results of operations, financial condition and cash flows.
- The company's business is capital intensive and its incur substantial capital expenditure and working capital requirements and may requires additional financing to meet those requirements, which could have an adverse effect on the company's business, results of operations, cash flows and financial condition.
- The company derived 90.14%, 89.80% and 86.92% of its revenue from contract with customers in Fiscals 2026, 2025 and 2024, respectively, within India as a % of revenue from operations. Any adverse changes in economic or regulatory conditions that negatively affect the demand for the company's products in these markets could affect its results of operations.
- Certain of the company's facilities including at Hosur, Tamil Nadu and Pithampur, Madhya Pradesh currently operate at high-capacity utilization levels and the company may not be able to meet additional demand for its products until the company is able to increase its capacity. Further, if the company's underestimate or overestimate the demand for its products, the capacity utilization of the company's manufacturing facilities may be under-utilized or over-utilized, respectively, which could adversely affect its profitability and manufacturing schedules.
- The company regularly work with hazardous materials, and heavy machinery at its manufacturing facilities and activities in The company's operations can be dangerous, which could cause injuries to people or damage property.
- Failures or disruption of the company's IT systems may adversely affect its business, financial condition, results of operations and prospects.
- The company's Statutory Auditors and Previous Statutory Auditor have reported an emphasis of matter in the audit report for Fiscals ended March 31, 2024.
- The company has in the past entered into a number of related party transactions and may continue to enter into related party transactions in the future, and there can be no assurance that its could not has achieved more favourable terms if such transactions has not been entered into with related parties.
- Pricing pressure from the company's customers, competitive bidding dynamics or its inability to pass on costs to the company's customers, may materially and adversely impact its revenue from operations and profitability.
- The company is subject to strict performance requirements, including, but not limited to, the quality of its products and delivery schedules, and failing to comply (including due to problems with the company's component suppliers) may lead to cancellation of orders, product recalls, product liability claims, warranty claims, litigation and other disputes and claims.
- The company faces competition from both domestic and multinational corporations and there is no assurance that its will be able to successfully compete in the markets the company's currently operate in or those that its plan to expand into. The company's inability to compete effectively could result in the loss of customers and its market share, which could have an adverse effect on the company's business, results of operations, cash flows and financial condition.
- One of the company's Subsidiaries, Dhoot Automotive Systems Private Limited is entitled to an incentive package scheme and any changes to the scheme could adversely affect its financial condition, results of operations and business prospects.
- The company may be subject to labour unrest or stoppages or increased labour costs, and any disputes with its workforce could adversely affect the company's business, cash flows, financial condition and results of operations.
- The continuity of the company's operations and profitability is substantially dependent on the availability and cost of raw materials, including copper, polymers and brass, and components such as connectors, terminals, cables, mouldings and electronic components. In Fiscals 2026, 2025 and 2024, cost of materials consumed accounted for 67.82%, 65.51% and 65.37% of its revenue from operations and 76.20%, 74.86% and 75.85% of the company's total expenses. Any volatility in the prices of these materials or their availability on account regulatory restrictions may adversely impact its business, results of operations and financial condition.
- The company depends on a limited number of suppliers to procure its raw materials and components. In Fiscals 2026, 2025 and 2024, the company's purchases of raw materials from its top ten suppliers for the respective Fiscals contributed to 43.66%, 44.95% and 44.13% of the company's raw material purchases in Fiscals 2026, 2025 and 2024, respectively.
- The company may encounter delays or cost overruns during the completion of the construction of its manufacturing facilities in Nagondapally village, Hosur in Tamil Nadu, India and Chakan in Pune, Maharashtra, India which may adversely affect the company's business, results of operations, financial condition and cash flows.
- Conflicts of interest may arise among the company and other affiliates of Bain Capital in course of the growth of its business. Further, the company has not entered into non-compete or non-solicitation arrangements with its Promoters or Directors (other than the company's Promoter Rahul Radhavallabh Dhoot), and any competing activities undertaken by them could adversely affect its business.
- One of the company's Promoters, i.e. BC Asia Investments XV Limited, does not possess adequate experience in the company's line of business, which may have an adverse impact on the management and operations of the Company.
- The development of technologically advanced products involves a lengthy and expensive process with uncertain timelines and outcomes. Some of the company's product or process development decisions may not meet its expectations, and the company's investment in such projects may be unprofitable.
- A downgrade of the debt ratings of India by a domestic or international rating agency may affect the trading price of the Equity Shares.
- The company is exposed to international supply chain risks and any changes in the political relationship between India and such countries or the implementation of laws and policies affecting supplier relationships could adversely affect its ability to manufacture the company's products, execute its projects and consequently the company's business and results.
- The company has undertaken and may continue to undertake strategic investments, acquisitions and collaborations (including in overseas locations) in the future, which may be difficult to sustain, integrate and/or manage successfully. These may expose the company to uncertainties and risks, any of which could adversely affect its business, financial conditions and result of operations.
- The company is exposed to counterparty credit risk. Its inability to collect receivables on time or at all and defaults in payment from the company's customers could reduce its profits and affect the company's results of operations, financial condition and cash flows.
- As at March 31, 2026, the company derived 50.52%, 28.26%, 14.12% and 5.26% of its installed wiring harness production capacity from the company's manufacturing facilities located in Maharashtra, Tamil Nadu, Haryana and Madhya Pradesh, respectively. Additionally, 100% of its other products capacity are located in Maharashtra. Any disruptions or stoppages at the company's manufacturing facilities or adverse developments including changes in the regulatory framework affecting these states may have a heightened impact on the company's business, cash flows, financial condition and results of operations.
- The company has power, water and fuel requirements and any disruption to power or water sources could increase its production costs and adversely affect the company's results of operations.
- This Red Herring Prospectus contains certain non-GAAP financial measures and other statistical information related to the company's operations and financial performance. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other companies.
- The company's failure to identify and understand evolving industry trends and preferences and to develop new products to meet its customers' demands may materially adversely affect the company's business.
- The company's inability to maintain appropriate levels of inventory to meet the demands of its customers may have an adverse effect on the company's results of operations and financial condition.
- There are outstanding litigation proceedings involving the Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and its Senior Management Personnel. Any adverse outcome in such proceedings may have an adverse impact on the company's reputation, business, cash flows, financial condition and results of operations.
- The scale of the company's business has grown significantly. Its may not be able to sustain such growth rates, and the company's historical growth rates should not be taken as indicative of its future growth prospects.
- The company's business is influenced by government policies and regulations regarding emission standards, which significantly impact its industry.
- The company outsources its logistics requirement to third parties. Any failures by such third parties to deliver their services could have an adverse impact on the company's business, results of operations, financial condition and prospects.
- The company has total borrowings of Rs. 8,413.92 million as of March 31, 2026. If the company fails to comply with financial and other covenants under any of its financing agreements, the company's business, prospects, financial condition, results of operations and cash flows may be materially and adversely affected.
- The company is subject to environmental and safety regulations that may adversely affect its business.
- The company is potentially subject to laws related to anti-corruption, anti-bribery, anti-money laundering, financial and applicable primary and secondary economic sanctions and similar laws of the US and EU or other jurisdictions, and non-compliance with such laws can subject the company to administrative, civil and criminal fines and penalties, all of which could adversely affect its business, prospects, financial condition, results of operations, and cash flows.
- The company is required to obtain certain approvals, licenses, registrations and permissions for operating its business and comply with the terms and conditions of the lease deeds for the manufacturing units located in industrial development areas including the proposed wiring harness manufacturing facility at Shoolagiri, Hosur, Tamil Nadu, India. Any delay or failures to obtain, renew or maintain necessary such approvals, licenses, registrations and permissions and any failures to comply with the terms and conditions of the lease deeds would adversely affect the company's operations.
- The company's assets and operations are subject to certain risks and hazards. Its insurance coverage may not be adequate, and the company may become subject to higher insurance premiums or less favourable terms under its insurance policies.
- Certain of its listed and unlisted peers may have outperformed the Company on certain key performance indicators or financial parameters, and there can be no assurance that the company will be able to match or exceed such performance in the future.
- Failures to implement the company's growth strategies, which include strategic co-investments, and future collaborations, could adversely impact its business, cash flows, financial condition, and results of operations.
- The company's inability to protect or use its intellectual property rights may adversely affect the company's business.
- The company has been unable to locate certain of its historical corporate records. Further, there has been an instance of certain non-compliances under the Companies Act in the past.
- Information relating to the company's operational capacities and the historical capacity utilization of its manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
- The company's funding requirements and the proposed deployment of Net Proceeds has not been appraised by any bank or financial institution or any other independent agency, and its management and Board will have broad discretion over the use of the Net Proceeds.
- The company has not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Offer and the costs to be incurred in relation to such objects of the Offer are based on the quotations received from the vendors or estimates of the management.
- If the company inadvertently infringe upon the intellectual property rights of others, its business and results of operations may be adversely affected.
- The company depends on contract labor for carrying out operations at its manufacturing facilities and any disruption to the availability of contract labor for the company's manufacturing facilities or its inability to control the cost of the company's contract labor could adversely affect its operations. Further, the company may be held responsible for paying wages of such workers, if independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company's results of operations and financial condition.
- The success of the company's business depends on its management team and operational workforce. The company's inability to attract or retain such manpower could adversely affect its business and operations.
- Any further delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have a material adverse impact on the company's financial condition and cash flows.
- Grant of stock options under the company's employee stock option plans may result in a charge to its profit and loss account and, to that extent, reduce the company's profitability and financial condition.
- The company has certain contingent liabilities that has not been provided for in the company's financial statements, and its financial condition could be adversely affected if any of these contingent liabilities materialize. The company also has certain contractual commitments, which may entail cash outflow.
- The company's Promoters, will continue to exercise significant influence on account of its shareholding over the Company even after completion of the Offer and its interests may differ from those of the other shareholders.
- Any unscheduled, unplanned or prolonged disruption to the company's manufacturing and R&D operations could materially and adversely affect its business, financial condition and results of operations.
- A portion of the Net Proceeds is proposed to be utilized for the repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company from a lender who is an affiliate of one of its BRLMs.
- If the company's Net Proceeds to be utilised towards inorganic growth through unidentified acquisitions are insufficient for the cost of its proposed inorganic acquisition, the company may has to seek alternative forms of funding.
- The Company has acquired a parcel of land from one of the members of the Promoter Group, Mangalam Capital Private Limited.
- The Company has unutilised amounts from corporate social responsibility activities and has had shortfalls in CSR expenditure.
- The Company may be required to pay pre-payment penalties in connection with the repayment or pre-payment of certain outstanding borrowings from the Net Proceeds, which may increase the cost of such repayment or pre-payment and reduce the Net Proceeds available for other objects of the Offer.
- If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company's financial risks.
- Certain of the company's immovable properties, where some of its manufacturing units are located, are leased. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be an adverse effect on the company's business, financial condition and operations.
- Proceeds from the Offer for Sale portion of the Offer will not be available to the company. The Selling Shareholders in the Offer for Sale will receive the proceeds of the Offer.
- The company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company's financing arrangements.
- One of the members of the company's Promoter Group, BC Asia Investments XXIII Limited has provided security to certain lenders on its entire shareholding in one of the company's Promoters, BC Asia Investments XV Limited and one of its Promoter Group members, BC Asia Investments XVI Limited. Any exercise of their rights by such lenders could also result in an indirect change in control of the Company and adversely affect its business and financial condition.
- Certain sections of this Red Herring Prospectus contain information from the CRISIL Report which has been exclusively commissioned and paid for by the company in relation to the Offer and any reliance on such information for making an investment decision in this offering is subject to inherent risks.
- The Company has issued Equity Shares during the preceding twelve months at a price that may be below the Offer Price.
- Certain of the company's Promoters, Directors, Key Managerial Personnel and Senior Management Personnel have interests in the Company in addition to their remuneration and reimbursement of expenses.
- The company is exposed to foreign currency exchange rate fluctuations which may have an adverse effect on its results of operations.
The Issue type of Dhoot Transmission Ltd is Book Building.
The minimum application for shares of Dhoot Transmission Ltd is 17.
The total shares issue of Dhoot Transmission Ltd is 35218047.
Initial public offering of 35,218,047 equity shares of face value of Re. 2 each ("Equity Shares") of Dhoot Transmission Limited ("the Company" or "the Company") for cash at a price of Rs. 871 per equity share (including a premium of Rs. 869 per equity share) ("Offer Price") aggregating to Rs. 3066.89 Crores (the "Offer") comprising of a fresh issue of 16,080,445 equity shares of face value of Re. 2 each aggregating to Rs. 1400.00 Crores (the "Fresh Issue") and an offer for sale of 19,137,602 equity shares of face value of Re. 2 each aggregating to Rs. 1666.89 Crores (the "Offer For Sale"), consisting of 16,018,769 equity shares of face value of Re. 2 each aggregating to Rs. 1395.24 Crores by Bc Asia Investments Xv Limited ("Promoter Selling Shareholder") and 3,118,833 equity shares of face value of Re. 2 each aggregating to Rs. 271.65 Crores by Mangalam Capital Private Limited (formerly known as Mangalam Coils Private Limited) ("Promoter Group Selling Shareholder" , together with the promoter selling shareholder, the "Selling Shareholders" and such equity shares, the "Offered Shares").
This offer includes a reservation of 75,853 equity shares of face value of Rs. 2 each (constituting 0.04% of the post-offer paid-up equity share capital of the company) aggregating to Rs. 6 Crores for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers offered a discount of Rs. 80 per equity share to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 17.22% and 17.18% of the post-offer paid-up equity share capital of the company, respectively.
Price Band: Rs. 871 per equity share of face value of Rs. 2 each.
The floor price 435.50 times the face value of the equity shares, respectively.
Bids can be made for a minimum of 17 equity shares of face value of Rs. 2 each and in multiples of 17 equity shares of face value of Rs. 2 each thereafter.
A discount of Rs. 80 per equity share is being offered to eligible employees bidding in the employee reservation portion.