Bonfiglioli Plans ₹2,500-Crore IPO as Indian Arm Generates 31% of Global EBITDA

Italian power transmission and drive solutions manufacturer Bonfiglioli S.p.A. is advancing plans to list its Indian arm, Bonfiglioli Transmissions Limited, through an initial public offering (IPO) expected to raise approximately ₹2,500 crore. The move follows the submission of draft offer documents with the Securities and Exchange Board of India (SEBI) and comes as the domestic operation delivers an outsized contribution to the group’s global profitability.

The Indian subsidiary currently accounts for roughly 31% of the global group's earnings before interest, tax, depreciation, and amortisation (EBITDA), cementing the country's position as both a critical manufacturing hub and a primary growth engine for the Bologna-headquartered engineering company.

Offer Structure and Financial Profile

The proposed issue is structured entirely as an Offer for Sale (OFS) of up to 46,998,959 equity shares of face value ₹10 each by the promoter, Bonfiglioli S.p.A.. Because the issue consists solely of an offer for sale, the entire net proceeds will go to the promoter, with no fresh capital flowing to the Indian operating company. The merchant banking syndicate managing the book-running process includes Axis Capital, BNP Paribas, ICICI Securities, and Jefferies India.

Financially, the Indian business has shown robust expansion:

• Revenue from operations reached ₹1,864 crore in FY24, rising at a compound annual growth rate of over 9% from ₹1,558 crore in FY22.
• Operating EBITDA grew to ₹293 crore in FY24, delivering margins of nearly 16%.
• For the first half of FY26 (ended September 30, 2025), the company recorded revenue of ₹1,460.17 crore and an EBITDA of ₹253.48 crore, clocking an operating margin of 17.36% and net profit of ₹165.19 crore.

India as an Industrial and Export Engine

Bonfiglioli has operated in India for over 25 years, transforming from a domestic assembly outfit into an integrated global engineering and supply center. The company operates manufacturing and assembly plants in Tamil Nadu (Thirumudivakkam and Mannur) and Maharashtra (Pune and Talegaon). Over the past three years, the group has deployed roughly ₹300 crore toward local capacity additions and technical tooling.

The business is structured across three core verticals:

• Industry & Automation Solutions: Catering to material handling, packaging, mining, and food processing machinery.
• Off-Highway Mobility: Supplying planetary drives, wheel drives, and hydraulic drive systems for construction, agricultural, and earthmoving vehicles.
• Wind Industry: Providing mission-critical yaw and pitch control drive gearboxes for wind turbine original equipment manufacturers (OEMs).

Catalysts and Capital Market Context

The planned listing comes amid sustained investor appetite on Dalal Street for multinational corporations' (MNC) Indian subsidiaries, especially those plugged into manufacturing, capital expenditure, and energy transition themes. Bonfiglioli India is diversifying into heavy-duty gearboxes, customized motion-control systems, and electrification gear for light commercial and off-highway electric vehicles.

With the promoter monetizing a portion of its 100% equity holding to meet listing norms, the float will establish a local market valuation for one of India's largest precision transmission suppliers while providing the group with global capital liquidity.

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