Dhoot Transmission or Molbio Diagnostics: Which IPO deserves your money this week?

Investors will have a choice between two mainboard public issues on Monday, August 10, as Dhoot Transmission and Molbio Diagnostics open for subscription.While both companies operate in completely different sectors—one in automotive electrical systems and the other in molecular diagnostics, their grey market trends and fundamentals present an interesting comparison for investors looking for listing gains as well as long-term returns.The biggest differentiator at the moment is the grey market premium (GMP). Dhoot Transmission is commanding a premium of Rs 259 per share, implying an estimated listing gain of nearly 30%, while Molbio Diagnostics' GMP has cooled to Rs 122, indicating expected gains of around 15%.Although GMP is an unofficial indicator and should not be the sole basis for an investment decision, it offers an indication of market sentiment ahead of listing. DHOOT TRANSMISSION HAS THE STRONGER GREY MARKET MOMENTUMThe GMP trend clearly favours Dhoot Transmission.The company's shares are commanding a grey market premium of Rs 259 against the upper issue price of Rs 871, suggesting a possible listing price of around Rs 1,130, or gains of about 29.7%. More importantly, the GMP has remained largely stable between Rs 247 and Rs 259 over the past week, indicating sustained demand among grey market participants.Molbio Diagnostics, on the other hand, has seen its GMP decline steadily.After touching Rs 220 on August 6, the premium has fallen to Rs 122, bringing the estimated listing gain down to around 15.1%. While the premium still remains positive, the trend suggests that investor enthusiasm has moderated closer to the IPO opening. (Based on the GMP data shared by the user.)FINANCIALS: DHOOT IS THE LARGER BUSINESSDhoot Transmission also appears stronger from a financial perspective.For FY26, the company reported revenue from operations of Rs 4,524.9 crore and a net profit of Rs 396.8 crore. It has delivered a three-year revenue CAGR of around 27%, significantly ahead of the broader auto ancillary industry's growth rate of 12-15%.Molbio Diagnostics reported FY26 revenue of Rs 1,445.6 crore and a net profit of Rs 164.1 crore. While smaller in scale, the company has consistently improved both revenue and profitability over the past three financial years.DIFFERENT BUSINESSES, DIFFERENT GROWTH STORIESDhoot Transmission operates in the automotive electrical and electronics space, manufacturing wiring harnesses, battery packs, connectors, sensors and electrical distribution systems for both internal combustion engine (ICE) and electric vehicles.One of its biggest strengths is its dominant position in India's electric two-wheeler and three-wheeler market. According to the IPO note, it commands nearly 70% market share in electric 2W and 3W wiring harnesses and is among the top two players in the segment overall. The company is also expanding manufacturing capacity in Haryana and Tamil Nadu to meet future demand.Molbio Diagnostics, meanwhile, is a healthcare technology company engaged in rapid molecular diagnostics.Its flagship Truenat platform is a portable, battery-operated PCR-based molecular diagnostics system capable of delivering test results within an hour. The company supplies diagnostic solutions for diseases such as tuberculosis, COVID-19, hepatitis, HIV and HPV and has established a strong presence in government healthcare programmes as well as international markets.VALUATIONS LOOK REASONABLE IN BOTH CASESNeither IPO appears excessively priced.Molbio Diagnostics is valued at a pre-IPO P/E of 55.4 times, broadly in line with listed diagnostic companies such as Dr Lal PathLabs, Metropolis Healthcare and Vijaya Diagnostic Centre. The IPO note says the issue is priced below the average peer valuation.Dhoot Transmission is valued at 41.4 times earnings, comparable with listed auto component companies such as Minda Corporation, Uno Minda and Motherson Sumi Wiring India.WHAT ARE THE RISKS?Both companies have sector-specific risks.For Molbio Diagnostics, one of the biggest concerns is its dependence on government and international aid-funded procurement programmes. A significant portion of revenue also comes from tuberculosis-related diagnostic products, while delays in regulatory approvals could affect the launch of new diagnostic tests.Dhoot Transmission faces risks from customer concentration, with its top 10 customers contributing around 81% of revenue. It is also exposed to raw material price volatility and cyclical demand in the automobile industry.WHICH IPO SHOULD YOU CHOOSE?If the objective is listing gains alone, Dhoot Transmission currently appears to have the upper hand.Its GMP is almost double that of Molbio Diagnostics and has remained relatively stable over the past week, suggesting stronger investor confidence ahead of listing.For long-term investors as well, Dhoot Transmission marginally edges ahead because of its leadership in the rapidly growing EV wiring harness market, stronger financial performance and sustained growth trajectory.That said, Molbio Diagnostics should not be overlooked. It operates in a niche, high-growth healthcare diagnostics segment, has built a proprietary technology platform and is expanding manufacturing capacity. Investors with a longer investment horizon and an interest in the healthcare sector may still find the company attractive.Based on the current fundamentals and grey market trends, however, Dhoot Transmission appears to be the stronger bet among the two IPOs, particularly for investors seeking better listing gains.(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 10, 2026 07:05 IST