Dhoot Transmission Secures ₹918.3 Crore from Anchor Investors Ahead of ₹3,067-Crore IPO

Dhoot Transmission, a leading auto components maker, has secured ₹918.3 crore from anchor investors, including prominent names like BlackRock and Abu Dhabi Investment Authority, ahead of its initial public offering (IPO) set to open on August 10.

Anchor Investors Back Dhoot Transmission’s ₹3,067-Crore IPO

The company allotted over 1.05 crore equity shares to anchor investors (72 funds) at ₹871 per share, according to a circular uploaded on the BSE website late night on Friday.

Domestic mutual funds accounted for the largest share of the anchor allocation, with eight fund houses investing through 46 schemes. They were allotted 64.60 equity shares, representing 61.27 per cent of the total anchor book.

Key Anchor Investors Participate in Dhoot Transmission’s IPO

The anchor book drew participation from a host of domestic and global institutional investors, including SBI Mutual Fund, ICICI Prudential MF, HDFC MF, BlackRock, WhiteOak, Abu Dhabi Investment Authority, Axis MF, Mirae Asset, Government Pension Fund, Amundi Funds, Allianz Global Investors, SBI Life Insurance, HDFC Life Insurance, ICICI Prudential Life Insurance, and Axis Max Life Insurance.

Market Impact and IPO Details

• The ₹3,067-crore IPO is scheduled for public subscription on August 10 and will conclude on August 12.
• The price band has been set at ₹829-871 per share.
• The IPO comprises a fresh issue of equity shares aggregating up to ₹1,400 crore and an offer for sale (OFS) of up to 1.91 crore equity shares by promoters — BC Asia Investments XV Limited, an entity of private equity firm Bain Capital, and Mangalam Capital Private Limited.

Key Takeaways

• Dhoot Transmission plans to use the proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings.
• The company will also invest in subsidiaries for debt repayment and set up new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu.
• A portion of the proceeds will be used for inorganic acquisitions and other strategic initiatives.

FAQs

What is the expected post-issue market capitalisation of Dhoot Transmission?

The company will command a post-issue market capitalisation of about ₹17,816 crore at the upper end of the price band, while the valuation at the lower end will be around ₹17,025 crore.

When are Dhoot Transmission’s shares expected to make a stock market debut?

The company’s shares are expected to make a stock market debut on August 17.

What are the key products manufactured by Dhoot Transmission?

The company manufactures products such as wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.

Conclusion

Dhoot Transmission’s successful anchor allocation is a significant milestone ahead of its IPO. With a strong investor backing and a well-planned IPO strategy, the company is poised for growth and expansion. As the IPO opens on August 10, investors are advised to keep a close eye on the market trends and make informed decisions.