Bonfiglioli Transmissions is the Indian arm of Italy's Bonfiglioli group. It designs and makes gearboxes, gear motors, drives, and servo and precision drives for industrial automation, off-highway mobility and wind turbines, from three plants (two in Tamil Nadu, one in Maharashtra). Its financial year runs January to December.

The issue is entirely an offer for sale of 4.32 crore shares by the parent, Bonfiglioli S.p.A., partly to meet minimum public shareholding rules. 50,000 shares are reserved for employees at a ₹29 discount. The company raised ₹759.26 crore from anchor investors on 14 October 2026.

Objects of the issue

  • None for the company — this is a 100% offer for sale, so the money goes to the parent

Key numbers

  • Market cap at upper band: ₹11,017 crore
  • Valuation: about 46.3x CY2025 earnings (EPS ₹12.65); about 37.1x H1 2026 earnings annualised; price-to-book about 11x
  • CY2025: revenue from operations ₹2,013.52 crore, EBITDA margin 18.41%, return on equity about 25.7%, ROCE 18.62%
  • Borrowings: nil since CY2024
  • Promoter holding: 100% pre-issue → 77% post-issue
  • Listed peers (P/E): Elecon 31.6x, Shanthi Gears 63.4x, Schaeffler India 53.7x, Timken India 57.7x

Strengths

  • Debt-free, profitable and growing: PAT up about 27% a year over CY2023–25, with expanding margins
  • Global parent provides technology, IP and customer access; leading share in small gearboxes
  • Valued slightly below the average of listed gear and bearing peers

Risks

  • 100% offer for sale; the company pays the parent royalties, a related-party dependence
  • Customer concentration among OEMs and exposure to cyclical industrial and wind capex
  • Not cheap in absolute terms (about 46x earnings, 11x book)
  • QIB demand was only 0.16x by day 2; institutions usually bid on the last day

Financials are restated consolidated figures in ₹ crore; "Revenue" is total income. Net worth for CY2025 is ₹975.25 crore per the RHP-based figures (one broker note shows ₹992.99 crore). Subscription figures are as of the end of day 2 (16 October, about 5 PM); bidding closes on Monday 19 October. Grey market premium is unofficial and changes quickly.