Dhoot Transmission Ltd, a major Indian auto-component manufacturer, is set to launch its initial public offering (IPO), attracting attention because of its strong presence in the electric vehicle (EV) wiring-harness market.
The Pune-based company manufactures wiring harnesses primarily for the two-wheeler (2W) and three-wheeler (3W) segments. According to a recent report by Geojit Research, the IPO has received a “Subscribe” rating, supported by the company's market position, financial growth and exposure to the expanding EV segment.
However, investors should also consider the company's high dependence on its largest customers and the impact of raw-material costs on margins.
Dhoot Transmission IPO: Key Details
The Dhoot Transmission IPO will open for subscription on August 10, 2026, and close on August 12, 2026.
The company has fixed the IPO price band at ₹829–₹871 per share and plans to raise approximately ₹3,066.9 crore through the public issue.
According to the Geojit Research report, the IPO proceeds will be used for purposes including debt repayment, new manufacturing facilities and future expansion.
IPO Detail Information
IPO Opening Date August 10, 2026
IPO Closing Date August 12, 2026
Price Band ₹829–₹871 per share
Issue Size Approx. ₹3,066.9 crore
Sector Auto Components
Key Products Wiring Harnesses
Key Segments 2W, 3W and EV
Brokerage View Geojit: Subscribe
What Does Dhoot Transmission Do?
Dhoot Transmission is an auto-component manufacturer based in Pune, Maharashtra.
The company's core business includes manufacturing wiring harnesses used in vehicles. Its products are particularly important for two-wheelers and three-wheelers, where wiring harnesses connect various electrical and electronic components.
The company has built relationships with several prominent automotive manufacturers, including Bajaj Auto, TVS, Honda and Royal Enfield.
Its exposure to both conventional and electric vehicles gives it access to multiple segments of India's rapidly evolving automotive market.
Dhoot Transmission's Strong EV Market Position
One of the biggest attractions of Dhoot Transmission is its reported presence in the electric two-wheeler and three-wheeler wiring-harness market.
According to the Geojit Research report, the company holds approximately 70% market share in EV 2W/3W wiring harnesses.
The company also commands around 41% market share in traditional two-wheeler and three-wheeler wiring harnesses.
This gives Dhoot Transmission a significant position as India's automotive industry increasingly shifts towards electrification.
The growth of electric two-wheelers and three-wheelers could create additional demand for electrical components and wiring systems.
Strong Customer Base
Dhoot Transmission's customer portfolio includes several established automotive companies.
Its customers include names such as:
Bajaj Auto
TVS
Honda
Royal Enfield
These relationships provide the company with access to large vehicle manufacturers and established production ecosystems.
However, customer concentration is also one of the key risks highlighted by analysts.
Dhoot Transmission Financial Performance
The company has reported strong revenue growth in recent years.
According to the Geojit Research analysis, Dhoot Transmission's revenue grew at a 27% CAGR between FY2024 and FY2026.
The growth reflects increasing demand for automotive electrical components and the company's expanding presence in the EV segment.
As vehicle manufacturers introduce more electric models, suppliers with established manufacturing capabilities and customer relationships could benefit from increasing component demand.
How Will Dhoot Transmission Use IPO Funds?
According to the Geojit Research report, the funds raised through the IPO will support several corporate objectives.
The company plans to use the proceeds for:
Debt repayment
Setting up new manufacturing plants in Haryana
Setting up new manufacturing capacity in Tamil Nadu
Future business expansion
Investment in new manufacturing facilities could help Dhoot Transmission increase production capacity and respond to rising demand from vehicle manufacturers.
Reducing debt could also help strengthen the company's balance sheet.
Dhoot Transmission IPO: Key Risks
While the company's EV exposure and market position are positives, investors should also consider the associated risks.
1. High Customer Concentration
Approximately 72% of Dhoot Transmission's revenue comes from its top five customers, according to the report.
This creates customer concentration risk.
If a major customer reduces orders, changes suppliers or faces a slowdown in production, Dhoot Transmission's revenue and profitability could be affected.
2. Raw Material Cost Pressure
Rising raw material prices have also put pressure on the company's margins.
Like many auto-component manufacturers, Dhoot Transmission's profitability can be influenced by fluctuations in the cost of materials used in manufacturing.
The company's ability to manage input costs and pass on increases to customers will therefore remain important for future margins.
What Do Experts Say About Dhoot Transmission IPO?
Geojit Research has assigned a “Subscribe” rating to the Dhoot Transmission IPO.
According to the brokerage's analysis, the valuation at the upper price band of ₹871 per share appears reasonable compared with industry peers.
Another potential growth driver is India's wiring-harness market.
The market is expected to grow at approximately 12–14%, according to the report. Dhoot Transmission's strong presence in the two-wheeler, three-wheeler and EV segments could allow the company to benefit from this expansion.
Geojit therefore considers the IPO potentially attractive for medium- to long-term investors.
Dhoot Transmission IPO: Key Positives and Negatives
Positives
Strong presence in the EV 2W/3W wiring-harness segment.
Reported 70% market share in EV 2W/3W wiring harnesses.
Approximately 41% share in traditional 2W/3W wiring harnesses.
Established customers including Bajaj Auto, TVS, Honda and Royal Enfield.
Revenue CAGR of approximately 27% between FY2024 and FY2026.
Planned investment in new manufacturing facilities.
Geojit Research has assigned a “Subscribe” rating.
Risks
High dependence on a limited number of customers.
Top five customers account for approximately 72% of revenue.
Raw-material price fluctuations could pressure margins.
Future growth depends partly on continued expansion of the automotive and EV markets.
Dhoot Transmission IPO: Should You Subscribe?
Based on the Geojit Research report, the Dhoot Transmission IPO receives a “Subscribe” recommendation.
The company's strong position in EV wiring harnesses, established relationships with major automobile manufacturers and healthy revenue growth are key positives.
The expected expansion of India's wiring-harness market could provide another growth opportunity, particularly as electric two-wheelers and three-wheelers gain wider adoption.
However, investors should carefully consider the company's customer concentration and raw-material cost risks before subscribing.
The IPO may be more suitable for investors with a medium- to long-term investment horizon who are comfortable with the risks associated with the auto-component and EV sectors.
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