The Dhoot Transmission IPO is betting heavily on India’s electric vehicle (EV) transition to power growth as the Bain Capital-backed auto components maker expands its product portfolio and manufacturing capacity. Headquartered in Chhatrapati Sambhajinagar, Dhoot manufactures wiring harnesses for automotive applications.
EV Electrification Emerges as Key Growth Driver
“Electrification will be the biggest growth driver for us, with premiumization following close behind,” said Nitin Kalani, Chief Financial Officer of Dhoot Transmission, ahead of its public issue.
India’s EV transition is led by electric two- and three-wheelers, where lower vehicle prices and shorter urban journeys make electrification more practical. Dhoot expects this shift to benefit its business because EVs typically require more extensive wiring-harness content than internal combustion engine (ICE) vehicles. Dhoot holds 70% market share in electric two- and three-wheeler wiring harnesses.
Beyond harnesses, Dhoot is building an EV-focused portfolio comprising battery assemblies, onboard chargers, DC-DC converters, and charging guns. Its non-harness products contribute 23% of revenue, up from around 18% in FY2024.
Strong Financial Growth and Investment
Dhoot Transmission reported FY2026 revenue of ₹4,563.70 crore, up 31% year-on-year, while profit after tax rose 12% to ₹396 crore. Bajaj Auto, India’s biggest two-wheeler exporter, contributed about one-third of the company’s revenue of ₹4,530 crore in FY2026.
Dhoot has invested ₹1,000 crore over four to five years and plans a similar investment for capacity expansion. Despite these investments, management expects sustainable margins of 15%-16%, broadly matching its EBITDA margin of 15.71%.
₹3,067 Crore IPO Details
The Dhoot Transmission IPO opens on August 10 and closes on August 12, 2026, with a listing expected on August 17 on the BSE and NSE. The issue has a price band of ₹829-₹871 per share and comprises a ₹1,400 crore fresh issue and an Offer for Sale worth ₹1,666.89 crore, primarily from Bain Capital’s BC Asia Investments XV.
Ahead of the issue, the company raised ₹918.3 crore from 72 anchor investors on August 7. Participants included BlackRock, ADIA, Amundi, and domestic mutual funds.
Debt Reduction and New Plants
The Dhoot Transmission IPO’s fresh proceeds will be used partly to repay more than ₹760 crore of debt and fund two new wiring-harness plants at Jhajjar in Haryana and Shoolagiri, Hosur, Tamil Nadu.
With EV and ICE businesses expanding alongside vehicle premiumization, Dhoot Transmission is positioning electrification, diversification, and capacity expansion as pillars of its long-term growth strategy.
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