Dhoot Transmission lists 38% above IPO price: Should investors buy, sell or hold?

Dhoot Transmission made a strong debut on the stock exchanges on Monday, with its shares listing at a premium of nearly 38% over the IPO price. The strong listing has now shifted the focus for investors who received allotment: should they book profits, hold the stock or wait before buying?Shares of Dhoot Transmission listed at Rs 1,200 on the NSE, a 37.77% premium over its issue price of Rs 871. On the BSE, the stock debuted at Rs 1,193.80, up 37.06% from the issue price. The Rs 3,067-crore IPO had received strong demand, with the issue subscribed 74.21 times.The stock was trading at Rs 1,150 on the NSE at 10:30 am, according to the report, after touching an intraday high of Rs 1,205 and a low of Rs 1,140.SHOULD INVESTORS HOLD OR SELL?For investors who received Dhoot Transmission shares in the IPO, the strong listing has already delivered substantial gains. But the question now is whether the stock can sustain these levels. Shivani Nyati, Head of Wealth at Swastika Investmart, said the company has a positive long-term outlook and recommended holding the stock with a stop-loss of Rs 1,100."Dhoot Transmission delivered a strong listing, gaining nearly 38% over its issue price. The company’s strong revenue growth, established position in wiring harnesses and increasing exposure to the EV segment provide a healthy long-term growth outlook. However, elevated customer concentration and execution risks warrant monitoring. We maintain a positive long-term view and recommend holding with a stop-loss of Rs 1,100," Nyati said. The view suggests that investors who already hold the stock may consider staying invested, but should keep an eye on the risks that could affect its growth.WHY DHOOT TRANSMISSION HAS A LONG-TERM CASEDhoot Transmission is an auto components manufacturer that makes wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.Its products are used across two-wheelers, three-wheelers, commercial vehicles, off-road vehicles, earth movers and farm equipment, as well as medical devices and domestic appliances.The company's increasing exposure to electric vehicles is another factor supporting the long-term outlook. As vehicle technology changes, wiring harnesses and electronic components become increasingly important to the vehicle's overall architecture.The company is also looking to expand its manufacturing capacity. IPO proceeds from the fresh issue are planned to be used for repayment or prepayment of certain borrowings, investment in subsidiaries for debt repayment and setting up new wiring harness manufacturing plants in Jhajjar, Haryana, and Hosur, Tamil Nadu. Some funds are also earmarked for inorganic acquisitions and other strategic initiatives.WHAT ARE THE RISKS?Despite the positive long-term outlook, investors need to watch customer concentration and execution.A strong listing also means the stock is now trading significantly above its IPO price, making valuations an important consideration for fresh investors.Market expert Mahesh M. Ojha, Vice President Research & Business Development at Kantilal Chhaganlal Securities, said short-term investors could consider booking partial profits after the strong debut, while medium- to long-term investors could hold the stock for its EV-led product mix improvement and capacity expansion.For investors who did not receive the IPO allotment, Ojha suggested waiting for the stock price to stabilise before considering an investment and accumulating gradually at more attractive valuations.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished On: Aug 17, 2026 12:05 IST