Mumbai-based auto components manufacturer Dhoot Transmission Ltd, backed by global investment firm Bain Capital, has taken a significant step toward going public by submitting draft papers with the Securities and Exchange Board of India (Sebi) through the confidential pre-filing route. This development was officially announced in local newspapers on Tuesday, marking a pivotal moment for the Aurangabad-headquartered company.
IPO Details and Financial Structure
According to informed sources familiar with the matter, Dhoot Transmission is planning to raise up to $250 million through a combination of primary and secondary share sales. The primary component involves issuing new shares to raise capital for the company, while the secondary portion will facilitate stake sales by existing investors. Notably, Bain Capital is expected to divest a portion of its holdings as part of this offering. However, the promoter group currently has no plans to sell any shares at this stage, according to one of the sources.
It is important to highlight that the final size of the initial public offering and the specific details regarding stake sales could undergo changes based on prevailing market conditions and the company's evolving requirements. This flexibility is common in such financial transactions to ensure optimal outcomes.
Bain Capital's Investment and Company Background
Bain Capital made its strategic investment in Dhoot Transmission in early 2025, acquiring a substantial 49% stake in the company. This investment coincided with a significant corporate restructuring that saw the consolidation of promoter-held entities, including Dhoot Holding Pvt., into Dhoot Transmission. This move streamlined the corporate structure and positioned the company for future growth.
The public announcement specifies that the shares will have a face value of ₹2 each and are planned for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). However, the notice clearly states that "the filing of the pre-filed draft red herring prospectus shall not necessarily mean that the company will undertake the offer," indicating that this is a preliminary step subject to further decisions.
Confidential Filing Process and Regulatory Framework
The confidential pre-filing route allows companies like Dhoot Transmission to seek regulatory feedback from Sebi without immediately making the draft prospectus public. This approach provides greater privacy and flexibility during the initial stages of the IPO process. Only when the company decides to proceed with the public offering will it need to file an updated draft red herring prospectus for public comment and scrutiny.
A consortium of leading financial institutions has been appointed to manage this issue. The merchant bankers include:
- Axis Capital
- Jefferies India
- Kotak Mahindra Capital Co.
- Nomura Financial Advisory and Securities (India)
- SBI Capital Markets
- 360 One WAM
Company Operations and Market Position
Founded by entrepreneur Rahul Dhoot in 1999, Dhoot Transmission has established itself as a key supplier to original equipment manufacturers across multiple sectors. The company serves both the automotive industry and consumer durables sector with a diverse product portfolio that includes:
- Wiring harnesses
- Automotive switches
- Electronic sensors
- Controllers and related components
These products cater to a wide range of vehicles including two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, off-road vehicles, and earth movers. The company's client roster includes major manufacturers such as Bajaj Auto Ltd, TVS Motor Co, Honda Motorcycle & Scooter India Pvt, and Royal Enfield.
Financial Performance and Growth Trajectory
A July 2025 Crisil report described Dhoot Transmission as "one of the largest players in the wire harness segment" in India. The company has demonstrated impressive financial growth, with revenue increasing from ₹1,550 crore in fiscal year 2022 to ₹2,653 crore in fiscal year 2024. This substantial growth has been driven by strategic product expansions and capacity enhancements.
Additionally, Dhoot Transmission has developed a meaningful international presence, with overseas operations contributing approximately 15-20% of its total revenue. This global footprint provides diversification and growth opportunities beyond the domestic market.
Industry Context and Market Trends
Dhoot Transmission's IPO filing comes at a time when the auto components sector in India is showing increasing confidence in accessing public markets. Over recent years, several prominent companies in this space have successfully listed on Indian stock exchanges, including ASK Automotive and Motherson Sumi Wiring India. This trend reflects both the sector's growth potential and investor appetite for automotive component manufacturers.
The company's decision to pursue a public listing through the confidential route represents a strategic approach to capital raising that balances regulatory compliance with operational discretion during the preparatory phase.
