New Delhi, Feb. 3 -- Wiring harness maker Dhoot Transmission, which is backed by US buyout firm Bain Capital, has confidentially filed its draft papers with India's capital markets regulator for an initial public offering (IPO) as a growing number of auto-components makers tap the capital markets.
Aurangabad, Maharashtra-headquartered Dhoot Transmission Ltd has filed its draft red herring prospectus (DRHP) confidentially with the Securities and Exchange Board of India (SEBI) for a proposed initial public offering of around $250 million (around Rs 2,252 crore). The proposed IPO will comprise a combination of fresh issue and offer for sale, though the promoter group is not exiting the business.
The IPO comes little over a year after Bain Capital picked up 49% stake in the auto components maker to help the latter pursue expansion and global reach.
Founded over 20 years back by Rahul Dhoot, the company is a key supplier to original equipment manufacturers (OEMs) across the automotive and consumer durables sectors. It manufactures wiring harnesses, automotive switches, electronic sensors and controllers, connectors and terminals, automotive cables, power cords and battery packs.
These products cater to the manufacturing of a wide range of products including two-wheelers, three-wheelers, passenger and commercial vehicles, off-road vehicles, earth movers, agricultural equipment, medical equipment and domestic appliances. Its key clients include Bajaj Auto, TVS Motor Company, Honda Motorcycle & Scooter India and Royal Enfield.
India's auto components sector has seen increased IPO activity in the past few years, with listings of ASK Automotive and Motherson Sumi Wiring India on the stock exchanges. Last year, Hero Motors filed for an IPO of up to Rs 1,200 crore to trim debt and fund purchase of equipment to expand its facility in Uttar Pradesh.
Global private equity firms have taken interest in the sector in recent years too. Bain Capital in 2024 backed RSB Transmission to pursue organic growth and acquisitions; another US PE firm Carlyle picked up a stake in Gurugram-based auto parts maker Roop Automotive Ltd.
Published by HT Digital Content Services with permission from VC Circle.