New IPO Alert: Bain Capital-backed Dhoot Transmission files confidential draft papers with SEBI

New IPO Alert: Auto component maker Dhoot Transmission Ltd has filed preliminary papers with the capital markets regulator, the Securities and Exchange Board of India, through the confidential pre-filing route to raise USD 250 million (about ₹2,258 crore) via an initial public offering.

Backed by private equity major Bain Capital, the proposed initial share sale will be a mix of a fresh issue of equity shares and an offer for sale (OFS) by existing investors.

Dhoot Transmission, in a public announcement on Tuesday, said it has "pre-filed draft red herring prospectus with SEBI and the stock exchanges...in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges".

The confidential pre-filing route allows companies to engage with SEBI for initial feedback on its draft document without it being publicly disclosed. The details are made public in the later stages of the IPO.

Founded in 1999 by Rahul Dhoot, Aurangabad-headquartered Dhoot Transmission manufactures products such as wiring harnesses, electronic sensors and controllers, automotive switches, cables, power cords, connectors and terminals for two-wheelers, three-wheelers, off-road vehicles, commercial vehicles, farm equipment, earth movers, medical devices and domestic appliances.

The company operates 23 manufacturing facilities, including 18 units in India and five plants units across the UK, Thailand, Japan, Slovakia, and South Korea.

Its clients include Bajaj Auto, Honda Motorcycle & Scooter India, TVS Motor Company, and Royal Enfield.

Kotak Mahindra Capital, Nomura India, SBI Capital Markets, Jefferies India and 360 ONE WAM are the book-running lead managers to the issue.