Bonfiglioli Transmissions Advances Rs 2,534 Crore IPO with Linklaters Advising Lead Managers
Global legal heavyweight Linklaters has advised the syndicate of book-running lead managers on the Rs 2,534 crore (approximately INR 25.34 billion) initial public offering (IPO) of Bonfiglioli Transmissions Ltd, the Indian subsidiary of Italian industrial engineering major Bonfiglioli S.p.A.
The public offering was brought to the Indian bourses through an investment banking consortium comprising Axis Capital Limited, BNP Paribas, ICICI Securities Limited, and Jefferies India Private Limited. The equity shares are slated for dual listing on the BSE and the National Stock Exchange of India (NSE).
Key Details of the Issue
The transaction is structured entirely as an Offer for Sale (OFS), meaning the company itself will not receive any capital proceeds, with the entirety flowing to the promoter:
- Total Issue Size: Up to 4,32,39,042 equity shares, aggregating to Rs 2,534 crore.
- Price Band: Fixed at Rs 558 to Rs 586 per share with a face value of Rs 10 apiece.
- Promoter Selling Shareholder: Bonfiglioli S.p.A., which is divesting part of its holding.
- Anchor Allocation: The company successfully mobilized Rs 759.26 crore by allotting 1.30 crore equity shares at the upper price band of Rs 586 apiece to anchor investors, including BlackRock, Goldman Sachs Asset Management, Abu Dhabi Investment Authority (ADIA), and SBI Mutual Fund.
Industrial Operations and Strategic Relevance
Headquartered in Tamil Nadu, Bonfiglioli Transmissions has operated in the Indian market for more than 25 years. The company is an established provider of precision-engineered gear motors, drive systems, speed reducers, and mechanical power transmission components.
The company divides its operations into three primary industrial verticals:
- Industry and Automation Solutions: Supplying drives and gear systems for industrial manufacturing machinery and robotics.
- Off-Highway Mobility: Catering to construction, mining, agricultural, and material-handling equipment.
- Wind Energy: Manufacturing yaw and pitch drives, gearboxes, and speed reducers for wind turbine generators.
To support future expansion, the group has outlined plans to expand its heavy-duty gearbox manufacturing capabilities through a dedicated facility in Talegaon, Maharashtra, while advancing local sourcing and expanding its portfolio into electric mobility drive solutions.
Financial Snapshot and Market Impact
According to regulatory filings, Bonfiglioli Transmissions has posted steady operational growth. In FY25, the company reported revenue from operations of Rs 1,864 crore, reflecting a 10.5% growth from Rs 1,687.50 crore in the preceding fiscal. Its earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 20% to Rs 293 crore, while profit after tax (PAT) reached Rs 191.12 crore compared to Rs 147.69 crore a year earlier. For the nine-month period ended September 30, 2025, operating revenue touched Rs 1,460.17 crore with a net profit of Rs 165.19 crore.
For Indian market participants, the listing offers direct equity exposure to a high-end industrial engineering MNC benefiting from ongoing capital expenditure cycles across renewable energy, infrastructure mechanization, and manufacturing automation.
