August 28, 2026

Dhoot Transmission Limited acquired equity stakes in its step-down subsidiaries Dhoot Automotive Systems Private Limited (DASPL) and Dhoot Autocomponents Private Limited (DACPL) for an aggregate consideration of ₹210.26 crore.

The listed entity purchased 5,02,800 equity shares of DASPL at a premium of ₹2,476.15 per share, totaling ₹125.00 crore. It also acquired 1,110 equity shares of DACPL at a premium of ₹7,68,056.89 per share, amounting to ₹85.25 crore. Both transactions were executed via cash consideration on August 28, 2026.

Transaction Details

The acquisitions increase Dhoot Transmission’s direct holding in DASPL from 38.14% to 42.98%. The company now holds 27,58,612 shares in the subsidiary. For DACPL, where it previously held no direct stake, Dhoot Transmission now owns 9.99% with 1,110 shares.

Both entities operate in the automotive components sector. DASPL manufactures automotive electronics, sensors, controllers, and battery packs. DACPL produces wires, connectors, cables, and battery terminals. The transactions are classified as related-party deals conducted at arm’s length.

Financial Performance of Subsidiaries

DASPL reported a turnover of ₹745.72 crore for FY26, up from ₹607.62 crore in FY25 and ₹324.94 crore in FY24. DACPL recorded a turnover of ₹682.81 crore for FY26, rising from ₹464.78 crore in FY25 and ₹100.87 crore in FY24.

What the Numbers Show

The capital infusion targets debt reduction. Dhoot Transmission stated that the additional capital will be used to repay or prepay outstanding borrowings availed by both subsidiaries. This move aims to free up internal accruals for further investment in business growth and expansion. No governmental or regulatory approvals were required for these acquisitions.

Dhoot Transmission acquired 75,000 equity shares of its wholly-owned subsidiary, Dhoot Transmission UK Limited, for an aggregate consideration of GBP 24,00,000 (approximately ₹31.3 crore) on August 27, 2026.

The transaction was executed at a price of GBP 32 per share, comprising a face value of GBP 1 and a premium of GBP 31. The company disclosed the investment pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Rationale

The additional capital infused into the UK entity is designated for the repayment or prepayment of outstanding borrowings. Management stated that this deleveraging move is expected to enable the utilization of internal accruals for further investment towards business growth and expansion.

Dhoot Transmission UK Limited, incorporated in January 2007 in the United Kingdom, is engaged in the trading of wiring harnesses. The acquisition does not require any governmental or regulatory approvals.

Subsidiary Financial Profile

Dhoot Transmission UK reported a turnover of GBP 74,08,346 (₹87.7 crore) for the financial year ended March 31, 2026. The following table outlines the subsidiary’s turnover over the last three fiscal years:

The transaction is classified as a related-party transaction but was conducted at arm’s length. The promoter group has no interest in the target entity beyond their holding in the listed company.