Bain Capital-backed Dhoot Transmissions’ initial public offering opens today for public subscription with a price band of ₹829-871 a share. The IPO closes on Wednesday, and the market lot is 17 shares.
The total issue size is ₹3,067 crore, comprising a fresh issue of ₹1,400 crore and an offer-for-sale of approximately 1.91 crore shares, worth ₹1,666.89 crore, by promoters BC Asia Investments XV Ltd, an entity of private equity firm Bain Capital, and Mangalam Capital Private Ltd.
The company has reserved 50 per cent of the offer for qualified institutional buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs) and the remaining 35 per cent for retail investors. Equity shares aggregating up to ₹6 crore have been reserved for eligible employees, who will get a discount of ₹80 per share on the offer price.
USE of funds
Of the fresh proceeds, ₹766 crore will retire existing debt, ₹150 crore will fund two new manufacturing facilities, and the remainder is earmarked for general corporate purposes and unspecified acquisitions. Post-IPO, the company expects to carry a cash surplus of roughly ₹900-₹1,000 crore on a debt-free balance sheet.
