Company Overview

Dhoot Transmission Limited is one of India's leading electrical and electronics companies that designs, engineers, manufactures and supplies critical wiring harnesses integrating electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems and data cables. The company serves both automotive and non-automotive applications, supporting stringent performance, safety and reliability requirements for OEMs. They manufacture wiring harnesses and electrical distribution systems for internal combustion engine vehicles and electric vehicles, along with battery packs, switches, sensors, controllers and power supply cords.

Subsidiaries: The company has 15 subsidiaries globally including Dhoot Automotive Systems Private Limited, Dhoot Autocomponents Private Limited, Dhoot Electricals Systems Private Limited, Dhoot Transmission UK Limited, DT Wiring Systems (Thailand) Co. Limited, and operations in Germany, Vietnam, and South Korea. Several subsidiaries avail special tax benefits including SEZ advantages and Maharashtra government incentive packages worth ₹91.41 million annually.

Offer Details

IPO Structure: Dhoot Transmission Limited proposes an Initial Public Offering comprising:

  • Fresh Issue: Up to [●] Equity Shares aggregating up to ₹14,000 million
  • Offer for Sale: Up to 16,310,733 Equity Shares by promoters Rahul Radhavallabh Dhoot and BC Asia Investments XV Limited
  • Employee Reservation: Up to 5% of post-offer paid-up capital

Allocation: QIBs (50%), non-institutional bidders (15%), and retail investors (35%) as per SEBI regulations

Price Band: To be determined and advertised in Financial Express, Jansatta, and Loksatta newspapers

Financial Performance

Strong Growth Trajectory:

| Period | Revenue (₹ million) | PAT (₹ million) | EBITDA (₹ million) | Margin |

| 9M Dec 2025 | 32,476.74 | 3,014.61 | 5,320.50 | 16.38% |

| FY 2025 | 34,448.63 | 3,538.87 | 5,909.63 | 17.15% |

| FY 2024 | 27,977.26 | 2,987.48 | 5,123.98 | 18.32% |

| FY 2023 | 21,258.61 | 1,639.06 | 2,986.76 | 14.05% |

Capital Structure: Pre-offer paid-up capital of ₹193.62 million with 96,810,000 equity shares of ₹2 face value. Total borrowings of ₹8,224.86 million as of December 2025 with debt-to-equity ratio of 0.63.

Use of Proceeds

₹14,000 Million Fresh Issue Allocation:

  • ₹4,946.36 million: Repayment/prepayment of company borrowings
  • ₹2,730 million: Investment in subsidiaries for debt repayment
  • ₹1,500 million: Capex for new manufacturing plants at Jhajjar, Haryana and Hosur, Tamil Nadu
  • ₹2,000 million: Inorganic growth through acquisitions
  • ₹2,823.64 million: General corporate purposes

Market Position & Industry Outlook

Leadership Position: The company holds top-two market share in India's two-wheeler and three-wheeler wiring harness market with:

  • 44.64% overall market share in 2W/3W segments
  • Over 70% market share in electric 2W and 3W segments
  • 41.16% market share in 2W wiring harness segment

Industry Growth Drivers:

  • Indian automotive industry projected to grow from 28.2 million units in FY26 to 35-45 million units by FY31 (6-8% CAGR)
  • EV penetration expected to increase from 6.4% in FY26 to 28-32% by FY31
  • Global wire harness market projected to grow from $91.3 billion in 2024 to $136.8 billion by 2030 (7% CAGR)
  • EV wiring harness content 1.5x-2.5x that of ICE vehicles

Risk Factors

Business Risks:

  • Significant dependence on 2W and 3W automotive sectors (79.65% of revenue)
  • Customer concentration with top 10 customers contributing 81.72% of revenue
  • Raw material price volatility (copper accounts for 50-60% of BOM cost)
  • High capacity utilization at certain facilities (Hosur: 89.89%, Pithampur: 89.93%)

Regulatory Risks:

  • 26 tax matters under dispute involving ₹88.57 million
  • Compliance with environmental and safety regulations
  • Changes in emission standards (BS-VI norms, ABS mandate from January 2026)
  • Foreign investment restrictions for border-sharing countries

Market Risks:

  • Economic slowdown impacting automotive demand
  • Currency exchange rate fluctuations affecting international operations
  • Technological obsolescence in rapidly evolving automotive technology

Manufacturing & Operations

Global Footprint: 22 manufacturing facilities globally (17 in India, 5 international) with total installed capacity of 41.22 million equivalent units in India at 80.24% utilization.

Intellectual Property: 9 registered trademarks, 32 design registrations, and 4 patents across multiple jurisdictions.

Employee Strength: 2,681 total employees with 232 design, engineering and R&D staff (8.65% of total). R&D expenses of ₹97.12 million in 9M Dec 2025 (0.34% of total expenses).

Regulatory Approvals & Timeline

Key Approvals Obtained:

  • SEBI observation letter dated May 5, 2026
  • In-principle listing approvals from BSE and NSE on April 24, 2026
  • Various statutory approvals for manufacturing operations

Book Running Lead Managers: 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.

Registrar: Kfin Technologies Limited

Corporate Structure

Promoters: Rahul Radhavallabh Dhoot (29.87%) and BC Asia Investments XV Limited (55.00%) holding 84.87% pre-offer stake.

Management Team: Experienced leadership including Rahul Radhavallabh Dhoot (Managing Director with 27 years experience), Naveen Kumar (CEO - India), Nitinkumar Dagdulal Kalani (CFO), and Dhiren Vinodraj Sheth (Executive Director and CHRO).

The IPO represents a significant milestone for Dhoot Transmission Limited to capitalize on growth opportunities in the evolving automotive components sector, particularly in the electric vehicle segment, while strengthening its balance sheet and funding expansion initiatives.