Auto components manufacturer Dhoot Transmission has pre-filed its draft red herring prospectus (DRHP) with market regulator the Securities and Exchange Board of India (Sebi) under the confidential route, marking a key step towards a potential stock market listing.

This is the 20th company to opt for Sebi’s confidential pre-filing mechanism, following firms such as OYO, Zepto, PhonePe, PhysicsWallah, Tata Capital, Meesho, Groww, boAt and Shiprocket, among others.

The company is looking to raise around $250 million (approximately ₹2,258 crore) through an initial public offering, according to industry sources. Backed by private equity firm Bain Capital, the proposed IPO is expected to comprise a fresh issue of equity shares along with an offer for sale (OFS) by existing investors, while the promoter group is not exiting the business, sources said.

Dhoot Transmission has also issued a public advertisement confirming that it has filed its IPO papers under Sebi’s confidential pre-filing framework.

Founded over two decades ago by promoter Rahul Dhoot, Dhoot Transmission supplies to original equipment manufacturers (OEMs) across the automotive and consumer durables segments. The company manufactures wiring harnesses, automotive switches, electronic sensors and controllers, connectors and terminals, automotive cables, power cords and battery packs, catering to a wide range of applications, including two-wheelers, three-wheelers, passenger and commercial vehicles, off-road vehicles, agricultural and construction equipment, medical devices and domestic appliances.

The company has built a global footprint, serving customers across eight countries and three continents. As part of its international expansion, it set up an engineering and marketing office in the UK in 2012, acquired TFC Cables in Scotland with a manufacturing facility in Slovakia in 2017, followed by the acquisition of Parkinson Harness in the UK in 2018 and San Electromec in 2019.

Dhoot Transmission operates an integrated manufacturing and technology platform, with all facilities and offices connected through SAP S/4HANA. It employs over 12,000 people and holds multiple global quality and safety certifications, including ISO 9001, IATF 16949, ISO 14001 and ISO 45001.

According to CRISIL Ratings’ May 2025 rating rationale, the company has established a strong position in the automotive wire harness and cables segment, supported by more than two decades of promoter experience and sustained investments in product development and capacity expansion. CRISIL noted that Dhoot Transmission is among the largest players in its segment and supplies to all major automotive OEMs. Key clients include Bajaj Auto, TVS Motor Company, Honda Motorcycle & Scooter India and Royal Enfield.

CRISIL also highlighted prudent working capital management, with gross current assets of around 104 days as of March 31, 2024, driven by receivables of 56 days and inventory of 39 days. Inventory remains largely order-backed, while credit discipline is moderate, supporting efficient cash-flow management.

On the financial front, the company maintains a comfortable balance-sheet profile, with net worth improving to ₹598 crore as of March 31, 2024, from ₹387 crore a year earlier, and gearing at 0.59 times. Debt protection metrics strengthened in FY24, with interest coverage rising to 9.3 times.

The company’s consolidated revenue rose to ₹2,653 crore in FY24 from ₹1,550 crore in FY22, driven by expansion across products and geographies. Overseas operations consistently contribute 15–20% of revenue, providing geographic diversification and supporting its business risk profile.

Private equity firm Bain Capital holds a 49% stake in Dhoot Transmission. Bain’s investment was accompanied by the consolidation of promoter-held entities, including Dhoot Holding Pvt Ltd, into the company.

The filing comes amid mixed conditions in India’s primary market. IPO fundraising slipped to its lowest level since April 2025 in January 2026, both in terms of the number of issues and capital raised. According to PRIME Database Group, only three companies—Shadowfax Technologies, Bharat Coking Coal Ltd., and Amagi Media Labs—tapped the primary market in January, raising ₹4,765 crore.

This marked a sharp decline from December 2025, when 10 IPOs together mobilised ₹21,857.94 crore, and represented the weakest monthly showing since April 2025, when just one IPO raised ₹2,980.76 crore, PRIME Database data showed.

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