Bonfiglioli Transmissions' initial public offering (IPO) reached 70% subscription by 1:45 PM on its second day, Friday, September 18, 2026. Investors placed bids for 2,12,22,600 shares out of the 3,02,82,330 shares available, showing strong market interest in the company.
- The IPO is 70% subscribed as of early afternoon on day two.
- Non-institutional investors (NIIs) oversubscribed their portion by 1.16 times.
- Retail individual investors (RIIs) subscribed 0.86 times.
- Qualified institutional buyers (QIBs) subscribed only 0.08 times.
- The IPO size is ₹2,534 crore with a price band of ₹558 to ₹586 per share.
- Minimum application size is 25 shares, with one lot required to apply.
What is Bonfiglioli Transmissions and its IPO details?
Bonfiglioli Transmissions is a technology-driven provider of mechanical and electro-mechanical power transmission and industrial drive solutions. The company offers gear motors, gearboxes, and drive systems. It is the Indian unit of Italy-based Bonfiglioli S.p.A., operating in India for over 25 years since its incorporation in Chennai in 1998.
The company manufactures its products at facilities in Thirumudivakkam and Mannur in Tamil Nadu, and Talegaon in Maharashtra. In calendar year 2025, these plants produced 3,41,133 gear-motor and gearbox units and have a combined annual capacity of 12,05,748 machine/assembly hours.
The IPO is a complete offer for sale, meaning existing shareholders are selling their shares. The price band is set between ₹558 and ₹586 per share. Investors must apply for a minimum of one lot, which consists of 25 shares.
Who are the anchor investors in the IPO?
Before the IPO opened to the public, Bonfiglioli Transmissions raised ₹759.26 crore from anchor investors. These investors include major global and Indian financial institutions such as Goldman Sachs Asset Management, BlackRock, Abu Dhabi Investment Authority, SBI Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, Mirae Asset Mutual Fund, Allianz Global Investors, Amundi, and Canada's Public Sector Pension Investment Board (PSP Investments).
The company allotted 1.30 crore shares to these anchor investors at the upper price band of ₹586 per share.
What are the company’s goals for the IPO proceeds?
According to the company's red herring prospectus, the funds raised from the IPO will be used to enhance the company’s visibility and brand image. The listing will provide liquidity and create a public market for its equity shares in India. This move is expected to support the company’s growth and expansion plans.
How has the IPO subscription progressed so far?
On the second day of subscription, the non-institutional investor (NII) category has been subscribed 1.16 times, indicating strong interest from this group. Retail individual investors (RIIs) have subscribed 0.86 times, showing moderate participation. However, the qualified institutional buyers (QIB) portion has been subscribed only 0.08 times, which is relatively low.
The overall subscription rate of 70% by early afternoon suggests that the IPO is progressing well but still has room to attract more investors before the closing date.
Frequently Asked Questions
Q: What is the minimum number of shares I can apply for in the Bonfiglioli Transmissions IPO?
A: The minimum application size is one lot, which consists of 25 shares.
Q: What is the price band for the IPO?
A: The price band is set between ₹558 and ₹586 per share.
Q: Who are the anchor investors in this IPO?
A: Anchor investors include Goldman Sachs Asset Management, BlackRock, Abu Dhabi Investment Authority, SBI Mutual Fund, ICICI Prudential Mutual Fund, and several other major institutional investors.
Q: What products does Bonfiglioli Transmissions manufacture?
A: The company manufactures mechanical and electro-mechanical power transmission products such as gear motors, gearboxes, and drive systems.
Q: How will the company use the funds raised from the IPO?
A: The funds will be used to enhance the company’s visibility, brand image, and provide liquidity and a public market for its shares in India.
