Dhoot Transmission Raises ₹918 Crore Ahead of ₹3,067-Crore IPO

Dhoot Transmission has raised ₹918 crore from 72 anchor investors ahead of its ₹3,067-crore initial public offering (IPO). The company has allotted 1.05 crore shares at ₹871 per share to these investors.

Domestic mutual funds accounted for 61.27% of the anchor allocation, indicating strong interest from domestic investors. The anchor book saw participation from a wide variety of marquee investors, showcasing the company's appeal to prominent investors.

The company will use the proceeds from the IPO to repay debt, fund expansion, and pursue acquisitions. Specifically, ₹766 crore will be used to retire existing debt, while ₹150 crore will be utilized to fund two new manufacturing facilities.

The IPO price band has been set at ₹829-871 per share, and the issue is expected to raise ₹3,067 crore. The IPO will open for subscription on August 10 and close on August 12.

## Why it matters The successful raising of funds from anchor investors is a positive sign for the company's IPO, which is one of the largest in the upcoming week. The Indian primary market is expected to remain active, with several companies looking to raise funds through IPOs. Dhoot Transmission's IPO is significant, as it will help the company become debt-free and pursue expansion plans. The company expects to carry a cash surplus of roughly ₹900-₹1,000 crore on a debt-free balance sheet post-IPO.

The IPO market has been active in recent times, with several companies looking to raise funds. The success of Dhoot Transmission's IPO will be closely watched, as it will set the tone for other upcoming issues. With a strong anchor allocation and a significant IPO size, Dhoot Transmission's issue is likely to generate considerable interest among investors.

## What happens next The IPO will open for subscription on August 10 and close on August 12. Investors will be keenly watching the issue, given its size and the company's plans to use the proceeds. The company's debt repayment and expansion plans are expected to have a positive impact on its financials and growth prospects.