Dhoot Transmission uses Rs 779.647 crore of IPO proceeds

Dhoot Transmission Limited used Rs 779.647 crore of net IPO proceeds by September 30, 2026, with Rs 766.575 crore deployed to repay the Holding Company’s and subsidiaries’ borrowings. The fresh issue generated Rs 1,326.981 crore after costs, leaving Rs 547.334 crore unutilised for a wiring-harness plant, acquisitions and general corporate purposes.

How much of Dhoot Transmission's IPO money had been used?

Dhoot Transmission had used Rs 779.647 crore and left Rs 547.334 crore unutilised as of September 30, 2026. The company listed its equity shares on the National Stock Exchange of India Limited and BSE Limited on August 17, 2026, after raising Rs 1,400 crore through its fresh issue before offer expenses.

The fresh issue comprised 1,60,80,445 equity shares, issued at Rs 871 per share. The wider IPO also included an offer for sale of 1,91,37,602 shares by selling shareholders, while the company’s share of fresh-issue expenses was Rs 73.019 crore, reducing available proceeds to Rs 1,326.981 crore.

Dhoot Transmission had deployed 58.8% of available net proceeds, calculated from Rs 779.647 crore used against Rs 1,326.981 crore available. Of the unutilised amount, Rs 33 lakh was held in a monitoring account and Rs 547 crore was temporarily invested in multiple fixed deposits with banks as of September 30, 2026.

Where did Dhoot Transmission deploy most of the proceeds?

Dhoot Transmission deployed Rs 766.575 crore to repay or prepay borrowings, representing the two debt-related categories in its IPO utilisation statement. It fully used the Rs 464.802 crore earmarked for the Holding Company’s borrowings and the Rs 301.773 crore earmarked for borrowings of certain subsidiaries.

Debt repayment accounted for 98.3% of the Rs 779.647 crore used by September 30, 2026, based on the utilisation table. The filing does not identify the lenders, individual subsidiary amounts or specific facilities repaid, but records both debt-repayment allocations as fully utilised.

The consolidated balance sheet also reported lower borrowings at September 30, 2026 than at March 31, 2026. Non-current borrowings declined to Rs 4.723 crore from Rs 246.285 crore, while current borrowings fell to Rs 219.106 crore from Rs 595.107 crore, a combined reduction of Rs 617.563 crore.

The cash-flow statement records Rs 324.344 crore of long-term borrowing repayments and Rs 312.566 crore of net repayments of current borrowings in the half year ended September 30, 2026. These cash-flow lines are not presented as a direct reconciliation to the IPO-use table, but both disclosures record substantial debt repayments during the period that included the August 17, 2026 listing.

What has Dhoot Transmission spent on the new plant?

Dhoot Transmission used Rs 13.071 crore for setting up a new wiring-harness manufacturing plant by September 30, 2026, against an IPO allocation of Rs 150 crore. The remaining Rs 136.929 crore represented 91.3% of the amount allotted for the plant.

The filing does not disclose the plant’s location, capacity, commissioning date, customer programme or total project cost beyond the Rs 150 crore allocation. It identifies automotive wiring harness and ancillary components as the group’s only reportable operating segment, placing the proposed plant within that single primary segment.

Payments for property, plant and equipment and intangible assets rose to Rs 298.293 crore in the half year ended September 30, 2026 from Rs 166.075 crore in the previous-year half year. Property, plant and equipment on the balance sheet increased to Rs 1,395.603 crore at September 30, 2026 from Rs 1,234.832 crore at March 31, 2026.

Those broader capital-spending figures cannot be treated as spending solely on the IPO-funded plant. Dhoot Transmission separately identifies only Rs 13.071 crore as utilisation of IPO proceeds for the plant, without allocating the Rs 298.293 crore of asset purchases between this project, routine investment and other assets.

Has Dhoot Transmission used funds for acquisitions or general purposes?

Dhoot Transmission had not used any of the Rs 410.406 crore reserved for unidentified acquisitions and general corporate purposes by September 30, 2026. This was the largest unutilised IPO-proceeds category, exceeding the Rs 136.929 crore still available for the new manufacturing plant.

A subsidiary completed a business purchase in the period, but the filing does not identify it as funded through the IPO allocation for inorganic growth. Dhoot Automotive Systems Private Limited entered a business transfer agreement with Multilink dated April 6, 2026, followed by a letter agreement dated June 6, 2026, to acquire its auto-electrical and electronic-parts business for Rs 421.155 crore in cash.

Multilink’s operations were included in consolidated results from June 10, 2026, and the group recognised provisional goodwill pending finalisation of the purchase price allocation under Indian Accounting Standard 103. The cash-flow statement reported Rs 421.155 crore paid for a business combination in the half year ended September 30, 2026, while the IPO-use table continued to show nil use of the acquisition and corporate-purpose allocation.

The two disclosures therefore establish separate facts: Dhoot Transmission completed a Rs 421.155 crore business combination, and it retained the entire Rs 410.406 crore IPO reserve for unidentified acquisitions and general corporate purposes. The filing does not state that this reserve funded the Multilink transaction.

Conclusion

Dhoot Transmission had applied Rs 779.647 crore of its Rs 1,326.981 crore net IPO proceeds by September 30, 2026. Its use of funds was concentrated on Rs 766.575 crore of Holding Company and subsidiary borrowing repayments, while Rs 13.071 crore was applied to the wiring-harness plant and no amount was used from the acquisitions and general-corporate allocation.

The next utilisation disclosure will show how Dhoot Transmission deploys the Rs 547.334 crore remaining at September 30, 2026, including Rs 136.929 crore for the plant and Rs 410.406 crore for unidentified acquisitions and general corporate purposes. The filing gives no plant completion target or proposed acquisition, leaving the timing and specific application of those funds unresolved.