Dhoot Transmission IPO Oversubscribed on Day 2

Dhoot Transmission's Rs 3,067 crore initial public offering (IPO) saw significant investor interest, being subscribed 3.94 times by Tuesday, the second day of the share sale. The IPO comprises a fresh issue of up to Rs 1,400 crore and an offer-for-sale of up to 1.91 crore shares.

Anchor investors, a group including BlackRock, Abu Dhabi Investment Authority, and SBI Mutual Funds, have already committed Rs 918.3 crore to the offering. The company has set a price band of Rs 829-871 per share for the IPO, which is scheduled to conclude on August 12.

Proceeds from the fresh issue are earmarked for repaying outstanding borrowings and for strategic investments. These include funding its subsidiaries' debt reduction and establishing new wiring harness manufacturing facilities in Jhajjar, Haryana, and Hosur, Tamil Nadu. A portion is also allocated for potential inorganic acquisitions.

Dhoot Transmission, established in 1999 and based in Aurangabad, Maharashtra, produces a range of automotive components. Its products include wiring harnesses, sensors, controllers, and connectors, serving diverse sectors like two-wheelers, commercial vehicles, medical devices, and domestic appliances. The company's shares are anticipated to debut on the stock market on August 17.