Bonfiglioli Transmissions to Open Pure OFS Public Issue on October 15

Bonfiglioli Transmissions Limited, the Indian subsidiary of Italian industrial machinery giant Bonfiglioli S.p.A., is set to launch its initial public offering (IPO) on October 15. The bidding window for the issue will remain open until October 19, according to regulatory filings.

The public offering consists entirely of an offer for sale (OFS) of up to 4,69,98,959 equity shares of face value ₹10 each by the promoter, Bonfiglioli S.p.A., with no fresh capital being raised by the company. Because the issue is a 100% OFS, all net proceeds will go directly to the selling shareholder. Market estimates suggest the issue size could range between ₹2,000 crore and ₹2,500 crore, pegging the enterprise valuation of the Indian unit at upwards of $1 billion.

Issue Structure and Timeline

The allotment of equity shares is tentatively scheduled for October 21, followed by the planned listing on both the BSE and the National Stock Exchange (NSE) on October 23.

The reservation breakdown across categories is as follows:

• Qualified Institutional Buyers (QIBs): Not more than 50% of the total offer
• Non-Institutional Investors (NIIs/HNIs): Not less than 15% of the offer
• Retail Individual Investors: Not less than 35% of the offer

Axis Capital Limited is acting as a book-running lead manager for the offering, while MUFG Intime India Private Limited serves as the registrar to the issue.

Business Operations and Financial Profile

Bonfiglioli Transmissions has operated in India for over 25 years, manufacturing precision-engineered gearboxes, gearmotors, and drive systems tailored for sectors including wind energy, construction machinery, material handling, and industrial automation.

The company occupies a dominant position in the renewable space, holding an estimated 68.3% share of India's wind-turbine-drive market. Its customer base includes prominent original equipment manufacturers (OEMs) such as Volvo, Tata Hitachi, Schwing Stetter, Escorts Kubota, Atlas Copco, and GMM Pfaudler.

Financially, the Indian arm operates as a primary growth driver for its European parent, generating approximately 31% of the global Bonfiglioli Group's EBITDA and 17.6% of its consolidated revenue.

Key Financial Highlights:

• For FY25, the company posted revenue from operations of ₹1,864.08 crore, reflecting a 10.5% increase year-on-year.
• Profit after tax (PAT) rose 29.4% to ₹191.12 crore in FY25, while EBITDA expanded 20% to ₹293.06 crore.
• For the nine-month period ended September 30, 2025, revenue stood at ₹1,460.17 crore with an EBITDA margin of 17.36%.
• The company remains net debt-free, holding a cash surplus of ₹162.83 crore as of September 2025.

Market Context

Managing Director Kennady V Kaippally noted that after investing over ₹680 crore in local manufacturing facilities and engineering capabilities across India, the unit has reached operational maturity and can stand independently on the domestic bourses. Addressing concerns over the lack of fresh capital in an OFS, management emphasized that investors should evaluate the company’s capital efficiency, balance sheet strength, and market leadership in industrial infrastructure expansion.

The issue opens during a bustling period for India's primary markets, joining a heavy pipeline of October mainboard offerings that include HD Fire Protect, Fusion CX, and Tonbo Imaging.

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