The initial public offering (IPO) of Bonfiglioli Transmissions has commenced for bidding today, October 14, 2026. The company is offering its shares in a price band of Rs 558 to Rs 586 apiece. Investors can apply for a minimum of 25 equity shares, with the issue aiming to raise Rs 2,543 crore. The subscription window for this significant public issue will close on Monday, October 19, 2026.
Company Profile
Bonfiglioli Transmissions is recognized as one of India's leading technology-driven firms, specializing in mechanical and electro-mechanical power transmission and industrial drive solutions. Based in Bengaluru, the company designs and manufactures high-precision, mission-critical gearboxes and drive systems that cater to a broad spectrum of industries.
IPO Details and Financials
This IPO is structured entirely as an Offer-for-Sale (OFS) comprising up to 4,32,39,042 equity shares. The selling shareholder is its Italian parent company, Bonfiglioli SPA, meaning the entire proceeds from the issue will go to the selling shareholders, and the company itself will not receive any net proceeds.
Ahead of the IPO, Bonfiglioli successfully raised Rs 759.26 crore from 73 anchor investors. These investors were allocated 1,29,56,712 equity shares at Rs 586 per share. Notable anchor investors included SBI MF, ICICI Pru MF, HDFC MF, Blackrock, Abu Dhabi Investment Authority, and Invesco India.
Financially, Bonfiglioli reported a net profit of Rs 148.58 crore on a revenue of Rs 1,139.16 crore for the quarter ending June 30, 2026 (Q1 FY27). For the full financial year 2025-2026, the company posted a net profit of Rs 237.87 crore with a revenue of Rs 2,023.59 crore. The company currently commands a market capitalization exceeding Rs 11,000 crore.
Allocation and Grey Market Premium (GMP)
The IPO has reserved 50 percent of the net issue for Qualified Institutional Bidders (QIBs), while non-institutional investors (NIIs) will receive a 15 percent allocation. Retail investors have a 35 percent reservation in the offering.
Market observers indicate that Bonfiglioli was commanding a Grey Market Premium (GMP) of Rs 175-180 per share. This suggests potential listing gains of approximately 30-31 percent for investors.
Axis Capital, BNP Paribas, Jefferies India, and ICICI Securities are serving as the book-running lead managers for the issue, with MUFG Intime India acting as the registrar. Shares of Bonfiglioli Transmissions are slated for listing on both the National Stock Exchange (NSE) and BSE Ltd on Friday, October 23, 2026.
Brokerage Views on Subscription
Several brokerage firms have weighed in on the Bonfiglioli Transmissions IPO, with many recommending a 'Subscribe' rating, particularly for long-term investment:
- Anand Rathi Share & Stock Brokers: Recommended 'Subscribe for long-term', citing the company's strong position to capitalize on growing demand for industrial automation, advanced power transmission solutions, and renewable energy.
- SBI Securities: Also advised 'Subscribe', highlighting Bonfiglioli's strong, loyal dealer network, robust return profile (RoCE 33.5%, RoE 24% in CY25), and favorable industry tailwinds.
- Canara Bank Securities: Gave a 'Subscribe for long-term' tag, noting the company's manufacturing footprint, rising domestic sourcing, India R&D Centre, and planned investments in heavy-duty gearboxes and e-mobility.
- Swastika Investmart: Recommended 'Subscribe', acknowledging the valuation (46.3 times FY26 EPS) but emphasizing its market-leading position, strong parentage, clean balance sheet, and high return ratios.
- Master Capital Services: Rated 'Subscribe for long-term', pointing to the company's diverse product applications across industrial machinery, material handling, and renewable energy, benefiting from rising automation and infrastructure development.
- KC Securities: Suggested 'Subscribe for long-term', citing established OEM relationships, advanced product portfolio, and localization-led margin improvement, justifying a premium valuation due to global technology backing and exposure to structural growth drivers.
- SMIFS: Recommended 'Subscribe' from a long-term investment perspective, supported by the company’s established market position, technological capabilities, global parentage, and exposure to structural growth in industrial automation.
- BP Equities: Issued a 'Subscribe' rating, noting the valuation at 46.32 times CY25 earnings is below the peer average, and highlighting its market leadership in specific product categories and strong return ratios.
- Ventura Securities: Advised 'Subscribe', based on Bonfiglioli's strategic positioning to leverage automation, infrastructure, and clean energy tailwinds, including plans for a new heavy-duty gearbox facility and e-mobility expansion.