Dhoot Transmission IPO subscribed 2.87 times so far on Day 2; check lot size and key dates

The initial public offering of auto components maker Dhoot Transmission has been subscribed 2.87 times so far on the second day of bidding on Tuesday, August 11.

The mainboard IPO secured bids for 7,16,08,335 shares against 2,49,56,363 shares on offer, as per the NSE data until 2:21 pm.

The quota for non-institutional investors was subscribed 7.12 times. The retail portion was booked 2.37 times, while the qualified institutional buyers (QIBs) part was subscribed 47%.

The ₹3,066.89 crore IPO comprises a fresh issue of shares aggregating up to ₹1,400 crore and an offer-for-sale (OFS) component of ₹1,666.89 crore by promoters private equity firm Bain Capital's entity BC Asia Investments XV Ltd and Mangalam Capital Private Ltd.

The company intends to use the proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings, investment in units for debt repayment and setting up of new wiring harness manufacturing facilities in Jhajjar, Haryana, and Hosur, Tamil Nadu.

A portion of the proceeds will also be utilised for inorganic acquisitions and other strategic initiatives.

"Our Company expects to receive the benefits of listing of the equity shares on the stock exchanges, including enhancement of our company’s brand name amongst our existing and potential customers and creation of a public market for our equity shares in India," according to the RHP.

Dhoot Transmission IPO: Lot size

A lot consists of 17 equity shares and in multiples thereof.

Dhoot Transmission IPO key dates

• Subscription period: August 10 to August 12
• Allotment finalisation: August 13
• Refund initiation: August 14
• Credit of Shares to Demat: August 14
• Listing date: August 17

Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures products, such as wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.

Its offerings cater to two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers, farm equipment, medical devices and domestic appliances.