Bain Capital backed Dhoot Transmission Limited files public DRHP with Sebi for IPO to raise Rs 1400 Crores via fresh issue

Bain Capital backed Dhoot Transmission Limited, one of India’s leading electrical and electronics companies has filed its Updated Draft Red Herring Prospectus - 1 (UDRHP - 1) with market regulator Securities and Exchange Board of India (SEBI) for its IPO.

The proposed public offer is a mix of fresh issue and an offer for sale. The fresh issue consists of equity shares of face value ₹2 each, aggregating up to Rs 1400 Crores. The offer for sale comprises up to 1,63,10,733 equity shares of face value ₹2 each.

The offer for sale includes equity shares being sold by the promoter and promoter group selling shareholders. BC Asia Investments XV Limited is offering up to 1,31,91,900 equity shares of face value ₹2 each and Mangalam Capital Private Limited, formerly known as Mangalam Colise Private Limited is offering 31,18,833 equity shares of face value ₹2 each.

The company proposes to use the net proceeds mainly for repayment/prepayment of certain outstanding borrowings of the company amounting to ₹493.9 crore, and investment in subsidiaries including Dhoot Auto Components Private Limited, Dhoot Electricals Systems Private Limited, Dhoot Automotive Systems Private Limited and Dhoot Transmission UK Limited for repayment/prepayment of their outstanding borrowings amounting to ₹272.58 crore. The proceeds will also be used to set up new wiring harness manufacturing plants at Sector 11, Jhajjar, Haryana, and Shoolagiri, Hosur, Tamil Nadu, with ₹150 crore allocated for this purpose. Additionally, the company plans to use funds for unidentified acquisitions and general corporate purposes. The net proceeds are proposed to be deployed over FY27 and FY28.

Founded in 1999, Dhoot Transmission Limited is one of India’s leading electrical and electronics companies. The promoters of the company are BC Asia Investments XV Limited and Rahul Radhavallabh Dhoot. BC Asia XV acquired a 49% stake in the Company in April 2025. The company designs, engineers, manufactures and supply critical wiring harnesses that integrate electronic sensors and controllers, switches, terminals, connectors, junction boxes, high-voltage interconnection systems and data cables, delivering application-specific architectures across platforms.

The company is among the top two players in India’s two-wheeler and three-wheeler wiring harness market, with a 44.64% market share by value in FY25. It is also a market leader in the electric two-wheeler and three-wheeler wiring harness segment, commanding over 70% market share in FY25, reflecting its strong positioning in both traditional and electric mobility platforms.

The company serves both automotive and non-automotive applications, with products designed to meet stringent OEM performance, safety and reliability standards. Its portfolio is aligned with the industry’s powertrain transition, as it manufactures for both ICE and electric vehicles and has diversified exposure beyond two-wheelers and three-wheelers into commercial vehicles, off-highway vehicles, farming and industrial equipment. 95% of the company’s product portfolio is electric vehicle focused or powertrain neutral. It’s product range includes battery packs, switches, ABS and lean angle sensors, USB chargers, light control modules and power supply cords, while new products such as side stand sensors and temperature sensors are under development.

The company offers a diversified wiring and electrical components portfolio spanning integrated wiring harnesses, automotive cables, connectors and terminals, power supply cords, sensors, controllers, switches, protective tubes/sleeves and IoT-enabled production monitoring solutions.

As on December 31, 2025, the company had 22 operational manufacturing facilities, three engineering and design support centres and seven warehouses across India and key international locations, providing access to major automotive clusters in India and globally. They have four under construction plants in India.

Commitment to R&D and innovation has been central to its strategy. Dhoot Transmission intends to expand its wallet share with existing clients. It plans to backward integrate into manufacturing High Voltage Sub Systems and subsequent harness sub-assemblies. It will fund this project through internal accruals and term loans

The company’s marquee clients include Bajaj Auto Limited, TVS Motor Company Limited, Honda Motorcycle and Scooter India Private Limited, Customer 4, and Royal Enfield, a unit of Eicher Motors Limited. During the nine months ended December 31, 2025 and Fiscals 2025, 2024 and 2023, the company had 477, 466, 436 and 453 customers, respectively

The company has demonstrated strong FY23–FY25 growth momentum, with revenue from operations rising 62% from ₹2,125.86 crore in FY23 to ₹3,444.86 crore in FY25, while PAT more than doubled from ₹163.91 crore to ₹353.89 crore. EBITDA also strengthened from ₹298.68 crore in FY23 to ₹590.96 crore in FY25, with EBITDA margin improving from 14.05% to 17.15%, while PAT margin expanded from 7.69% to 10.19% for the same period.

Wiring harnesses remain the core revenue driver, contributing ₹2,687 crore, or 78% of FY25 revenue, and ₹2,505.42 crore, or 77.15%, for the nine months ended December 31, 2025. Importantly, the business remains predominantly India-led, with India contributing ₹3,105.20 crore which is around 90% of FY25 revenue. EV revenue has also scaled sharply, rising from 8.05% of revenue in FY23 to 25.2% in FY25, indicating growing participation in the electric vehicle supply chain.

The 2W segment was the largest automotive segment in India by volume in FY25, and EV penetration in the 2W segment is forecasted to increase from 6.4% in FY26 to 20-25% in FY31. Additionally, EV penetration in the 3W segment was the highest among automotive segments in India. In the 3W segment, electrification is forecasted to increase from 23.4% in FY25 to 45-55% in FY31. EV revenue accounted for 25.22% of total revenue from operations in FY25 and 24.78% for the nine months ended December 31, 2025. The company’s ability to serve the growing EV market in India is evidenced by the growing share of revenue from operations derived from EV segments.

Axis Capital Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited and 360 ONE WAM Limited are the bankers to the issue.