Dhoot Transmission Ltd., an automotive component manufacturer backed by Bain Capital, is reportedly preparing to launch an initial public offering (IPO) in the first week of August. The company aims to raise a substantial ₹2,250 crore, which is equivalent to approximately $270 million to $275 million, joining a growing number of private equity-backed firms looking to tap India's buoyant primary markets.
The proposed IPO will involve a mix of a fresh issue of shares and an offer for sale (OFS) by existing investors. Bain Capital, which holds a 49% stake in Dhoot Transmission, will be offering up to 13,191,900 equity shares in the OFS. Additionally, Mangalam Capital Private Limited will offer 3,118,833 equity shares. The company received approval from the Securities and Exchange Board of India (SEBI) for its IPO after confidentially filing its draft papers in February 2026.
The fresh issue component of the IPO is expected to aggregate up to ₹1,400 crore. The proceeds from this fresh issue are primarily allocated for the repayment or prepayment of outstanding borrowings, totaling ₹493.9 crore for the company and an additional ₹272.58 crore for its subsidiaries. Dhoot Transmission also plans to invest ₹150 crore in setting up new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. The remaining funds will be used for unidentified acquisitions and general corporate purposes, with deployment planned over fiscal years 2027 and 2028.
Dhoot Transmission, founded in 1999, specializes in critical wiring harnesses and is a leading player in India's two-wheeler and three-wheeler wiring harness market, holding a 44.64% market share by value in fiscal year 2025. It also commands over 70% market share in the electric two-wheeler and three-wheeler wiring harness segment. The company has demonstrated strong financial growth, with revenue from operations increasing by 62% from ₹2,125.86 crore in FY23 to ₹3,444.86 crore in FY25, and profit after tax more than doubling from ₹163.91 crore to ₹353.89 crore over the same period. As of December 31, 2025, Dhoot Transmission had 22 operational manufacturing facilities and four under construction plants.
Investment banks managing the IPO include 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. The exact transaction timeline remains subject to market conditions, but preparations for the price band and issue opening are currently in progress.
