Shares of Bonfiglioli Transmission India Ltd. made a flat stock market debut on Friday, October 23, despite strong investor demand for its ₹2,533.66-crore initial public offering (IPO), which was subscribed 46.05 times overall.
The stock listed at its IPO price of ₹586 per share on both the NSE and BSE.
The IPO’s grey market premium (GMP) stood at around 11%, indicating positive sentiment ahead of the listing and the possibility of a premium over the issue price.
However, the GMP is an unofficial indicator based on grey market activity. It is not regulated by stock exchanges, can fluctuate before listing and does not guarantee the actual listing price.
The IPO opened for subscription on October 15 and closed on October 19. The Qualified Institutional Buyers (QIBs) category, excluding anchor investors, was subscribed 120.78 times, while the Non-Institutional Investors (NIIs) segment saw 40.39 times subscription. The Retail Individual Investors (RIIs) category was subscribed 5.90 times.
The issue was entirely an offer for sale (OFS), meaning Bonfiglioli Transmission India will not receive any proceeds from the IPO. Instead, the proceeds, after applicable expenses, will go to the existing shareholders selling their stakes.
The price band was fixed at ₹558-586 per share. Each lot comprised 25 shares, translating into a minimum investment of ₹14,650 for retail investors at the upper end of the price band. At this price, the company is targeting a post-issue market capitalisation of around ₹11,017 crore.
Bonfiglioli Transmission India manufactures precision-engineered mechanical and electromechanical power transmission solutions, including gearboxes, gear motors and drive systems. Its operations span three key business verticals: industry and automation solutions, off-highway mobility, and wind energy applications.
The company is the largest manufacturer of gearboxes and drive systems in India across these three segments by revenue, according to its disclosures.
Key risks highlighted by the company include dependence on a limited number of suppliers for critical raw materials and components, reliance on a related-party supplier, exposure to raw material price inflation and potential manufacturing disruptions.
The company also faces brand and reputation risks, along with dependence on its parent entity, to which it pays a royalty of 6% of annual sales of specified products.
For the six months ended June 2026, Bonfiglioli Transmission India reported a profit of ₹148.6 crore, compared with ₹115 crore in the corresponding period a year earlier.
Revenue from operations rose 17.9% to ₹1,131.9 crore from ₹960.4 crore in the year-earlier period, indicating growth in both revenue and profit ahead of the company’s stock market debut.
SBI Securities has assigned a ‘Subscribe’ rating to the IPO, citing the company’s diversified business model, strong return profile, established distribution network and favourable industry tailwinds across automation, off-highway mobility and wind energy.