Bain-linked BC Asia XV sells shares in the ₹3,067-crore Dhoot Transmission IPO. Retail gets 35% and staff get ₹80 a share off; the listing is set for Aug. 17.
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Auto components maker Dhoot Transmission Ltd fixed a price band of ₹829-871 per share for its ₹3,067-crore initial public offering, which opens for subscription on Aug. 10.
Anchor investors can bid on Aug. 7, and the issue closes on Aug. 12, according to a public announcement.
The IPO combines a fresh issue of up to ₹1,400 crore with an offer for sale of as many as 1.91 crore shares. Selling promoters are BC Asia Investments XV Ltd, an entity of private equity firm Bain Capital, and Mangalam Capital Private Ltd. Fresh-issue proceeds go to the company; offer-for-sale proceeds go to the selling shareholders.
Dhoot Transmission plans to use the money raised to repay or prepay outstanding borrowings and to fund debt repayment at subsidiaries. Part of the proceeds will go toward new wiring harness plants in Jhajjar, Haryana, and Hosur, Tamil Nadu, plus inorganic acquisitions and other strategic initiatives.
At the upper end of the price band, the post-issue market capitalisation is about ₹17,816 crore. The lower end values the company at around ₹17,025 crore.
The company, founded in 1999 by Rahul Dhoot and based in Aurangabad, Maharashtra, makes wiring harnesses and electronic sensors. Its wider range includes switches and power cords. The parts go into two-wheelers, three-wheelers, commercial vehicles, farm equipment, medical devices and home appliances.
Half the offer is set aside for qualified institutional buyers and 15 per cent for non-institutional investors. Retail investors get 35 per cent. Shares worth up to ₹6 crore are reserved for eligible employees at a discount of ₹80 per share on the offer price.
Axis Capital, Jefferies India, Kotak Mahindra Capital, Nomura Financial Advisory, SBI Capital Markets and 360 ONE WAM are the book-running lead managers. KFin Technologies is the registrar.
The shares are expected to begin trading on Aug. 17.
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