Dhoot Transmission Limited, an automotive components manufacturer, is set to launch its Initial Public Offering (IPO) on August 10, 2026. The public issue will remain open for subscription until August 12, while bidding for anchor investors will begin on August 7.
The company has fixed the IPO price band at ₹829 to ₹871 per equity share. Investors can bid for a minimum of 17 equity shares and in multiples of 17 thereafter. At the upper end of the price band, the minimum investment required will be ₹14,807.
The IPO consists of a fresh issue of equity shares worth up to ₹1,400 crore. Alongside the fresh issue, the public offer also includes an Offer for Sale (OFS) of up to 1,91,37,602 equity shares by existing shareholders.
According to the company’s offer document, BC Asia Investments XV Limited plans to sell up to 1,60,18,769 equity shares, while Mangalam Capital Private Limited, a promoter group company, may offload up to 31,18,833 equity shares through the OFS.
Dhoot Transmission has also announced a discount of ₹80 per share for eligible employees participating in the IPO.
The company stated that the floor price of ₹829 is 414.50 times the face value of ₹2 per equity share, while the cap price of ₹871 is 435.50 times the face value.
Based on its diluted earnings per share (EPS) for the financial year 2025–26, the company’s price-to-earnings (P/E) ratio stands at 33.98 times at the lower end of the price band and 35.70 times at the upper end. This compares with the average P/E ratio of 55.31 times for its listed industry peers.
The company also reported a weighted average Return on Net Worth (RoNW) of 27.06% over the last three financial years, indicating its financial performance during the period.
The IPO is being offered through the book-building process, a method in which investors bid within a specified price range before the final issue price is determined. As per SEBI regulations, up to 50% of the net offer has been reserved for Qualified Institutional Buyers (QIBs), while the remaining portion will be allocated to other investor categories.
The issue will be managed by the book-running lead managers in accordance with the guidelines prescribed by the Securities and Exchange Board of India (SEBI).
Dhoot Transmission said the funds raised through the fresh issue will be used for the company’s planned business requirements and future growth initiatives. The IPO forms part of the company’s strategy to strengthen its financial position while supporting expansion plans in the automotive components sector.
With subscriptions opening on August 10, market participants will closely watch investor interest in the issue as the primary market continues to witness activity across different sectors.
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