Bonfiglioli Transmissions, a key player in power transmission solutions, has filed papers with SEBI for an IPO entirely through an offer for sale by its Italian promoter, aiming to raise over Rs 2,000 crore while reducing its stake.

Bonfiglioli Transmissions Takes Step Towards Public Markets

Bonfiglioli Transmissions, the Indian arm of Italy's renowned Bonfiglioli Group, has submitted its Draft Red Herring Prospectus to the Securities and Exchange Board of India for an initial public offering.

This move marks a significant milestone for the company, which specializes in mechanical and electro-mechanical power transmission and industrial drive solutions.

The IPO is structured entirely as an offer for sale, with promoter Bonfiglioli S.p.A planning to offload up to 46.99 million equity shares.

This pure offer-for-sale means the company itself won't receive any fresh capital; all proceeds will flow directly to the selling shareholder.

Equity shares are set to list on both the Bombay Stock Exchange and the National Stock Exchange, opening doors for retail and institutional investors to participate in this established business.

The filing comes at a time when India's capital markets are buzzing with activity, drawing global players looking to tap into the country's growth story.

Bonfiglioli Transmissions has built a strong reputation over more than 25 years in India, backed by the global legacy of its parent company that spans nearly seven decades.

Operating in a competitive landscape, the firm stands out for its precision-engineered gearboxes and drive systems, serving critical industries across the board.

Financial Strength and Business Segments

The company's recent financials paint a picture of steady growth and profitability.

For the nine months ended September 30, 2025, revenue from operations reached Rs 1,460.17 crore, with profit after tax at Rs 165.19 crore.

In the full year ended December 31, 2024, these figures climbed to Rs 1,864.08 crore in revenue and Rs 194.69 crore in profit after tax.

On a group level, the Bonfiglioli entity reported Euro 1,190.9 million, equivalent to about Rs 10,591 crore, underscoring its position as one of the largest technologically advanced players in the sector worldwide.

Bonfiglioli Transmissions focuses on three main business verticals: Industry & Automation Solutions, Off-Highway Mobility, and Wind Industries.

These segments cater to diverse end-users, from manufacturing automation to heavy machinery in construction and renewable energy applications like wind turbines.

The Bonfiglioli Group boasts operations in 80 countries, with 17 production sites, seven R&D centers, over 550 distributors, and more than 5,000 employees globally.

It holds 21 patents under Bonfiglioli S.p.A, highlighting its commitment to innovation.

In India, the company has been manufacturing mission-critical components, positioning itself as a leader in precision engineering.

Key Players and Road Ahead

Leading the IPO process are book-running lead managers Axis Capital Limited, BNP Paribas, ICICI Securities Limited, and Jefferies India Private Limited.

"This IPO represents a strategic opportunity for us to broaden our investor base while continuing to drive innovation in power transmission solutions for India's growing industrial needs," said a company spokesperson.

MUFG Intime serves as the registrar.

Promoters include Bonfiglioli S.p.A, along with individuals like Sonia Bonfiglioli, Luciano Bonfiglioli, Luisa Lusardi, and BON-FI Srl, who currently hold full ownership.

Recently, ahead of the filing, the company appointed Ravindra Pisharody as chairperson, alongside independent directors Sundaresan Ananthanarayanan and Rossella Schiavini, signaling preparations for enhanced governance.

While details like the price band, lot size, and subscription dates remain undisclosed, market estimates peg the issue size at over Rs 2,000 crore.

This development could pave the way for further expansion in India's booming sectors like automation, mobility, and renewables.

Investors will watch closely as SEBI reviews the DRHP, potentially unlocking value in a firm with robust fundamentals and global backing.

In summary, Bonfiglioli Transmissions' IPO filing highlights its strong financial track record, diverse operations, and strategic governance upgrades, with the promoter set to reduce its stake through a sizable offer for sale.

This step not only provides an exit avenue for the Italian parent but also invites public participation in a key industrial player.

• Tags
• #Business
• #IPO
• #Markets