Bonfiglioli Transmissions IPO Subscribed Over 2x on Final Day as GMP Settles Near 22 Percent

The Rs 2,533.66-crore initial public offering (IPO) of Bonfiglioli Transmissions Limited sailed past the fully subscribed mark to reach over two times subscription during the final day of bidding on Monday. Bidding activity picked up sharply in the second half of Day 3 as institutional investors stepped in ahead of the issue close.

The public offer, which opened on October 15, 2026, had closed its second day at 99 percent subscription. By Monday afternoon, cumulative bids comfortably crossed twice the net offer size, propelled by healthy participation from non-institutional investors (NIIs) and retail participants, alongside closing-day institutional inflows.

Subscription Snapshot and Category-Wise Demand

The IPO comprises 4,32,39,042 equity shares with a price band set at Rs 558 to Rs 586 per share. The issue is purely an offer for sale (OFS) by its Italian promoter, Bonfiglioli S.p.A., meaning all net proceeds go directly to the selling shareholder and none accrue to the Indian operating company.

Heading into Day 3:

• The Non-Institutional Investor (NII) quota led the demand early, having already booked 1.71 times on Day 2.
• The Retail Individual Investor (RII) category was subscribed 1.16 times by the end of Day 2.
• The Qualified Institutional Buyers (QIB) segment, which stood modest at 0.16 times excluding anchors through Day 2, witnessed the typical final-day institutional surge to push the overall book well above two times.

Prior to the public rollout, the company raised Rs 759.26 crore from anchor investors, allotting 1,29,56,712 equity shares at the upper price band of Rs 586 per share. Domestic mutual fund houses—including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India, and Axis Mutual Fund—absorbed nearly 60 percent of the total anchor book.

Grey Market Trends and Valuation

In the unofficial grey market, the Bonfiglioli Transmissions grey market premium (GMP) was indicated around Rs 130 per share, translating to a listing premium of approximately 22 percent over the upper price band of Rs 586. The premium softened slightly from the 30 percent mark (Rs 178) witnessed during the initial launch days, reflecting broader market consolidation and elevated supply from concurrent IPOs.

At the upper band of Rs 586, the company commands a post-issue market capitalization of roughly Rs 11,016 crore. Analysts tracking the issue noted that while the OFS structure provides no fresh growth capital, the company operates a debt-free balance sheet with robust return metrics, including a return on net worth (RoNW) of 24 percent in CY25 and an established leadership position in industrial gear motors and wind turbine pitch and yaw drives.

Key Issue Details and Timetable

IPO Details:

• Price Band: Rs 558 to Rs 586 per equity share
• Lot Size: 25 shares (minimum retail commitment of Rs 14,650 at the cap price)
• Issue Structure: 100% Offer for Sale of Rs 2,533.66 crore
• Lead Managers: Axis Capital, BNP Paribas, ICICI Securities, and Jefferies India
• Registrar: MUFG Intime India Private Limited

Following the closure of the bidding window on October 19, the basis of allotment is scheduled to be finalized on Wednesday, October 21. Refunds and demat share unblocking are slated to commence on October 22, with the equity shares tentatively listing on the National Stock Exchange (NSE) and BSE on Friday, October 23, 2026.

Tags: Bonfiglioli Transmissions NSE BSE SEBI Capital Goods