New Delhi: Shares of auto components maker Dhoot Transmission Ltd on Monday listed with a premium of nearly 38 per cent against the issue price of Rs 871. The stock made its market debut at Rs 1,193.80, up 37 per cent from the issue price on the BSE. It further jumped 39.23 per cent to Rs 1,212.70.
At the NSE, the stock listed at Rs 1,200, registering a jump of 37.77 per cent. The company’s market valuation stood at Rs 23,487.23 crore.
Dhoot Transmission’s initial public offering received 74.21 times subscription on the last day of share sale on Wednesday. The Rs 3,067-crore IPO had a price band of Rs 829-871 per share.
The IPO had a fresh issue of equity shares aggregating up to Rs 1,400 crore and an offer-for-sale (OFS) of up to 1.91 crore equity shares by promoters BC Asia Investments XV Ltd, an entity of private equity firm Bain Capital, and Mangalam Capital Private Ltd.
The company plans to use the proceeds from the fresh issue towards repayment or prepayment of certain outstanding borrowings, investment in subsidiaries for debt repayment and setting up of new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu.
A portion of the proceeds will also be used for inorganic acquisitions and other strategic initiatives.
Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures products, such as wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.
Its offerings cater to two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers, farm equipment, medical devices and domestic appliances.