Bonfiglioli Transmissions IPO Day 2: Subscribed 0.73x; sHNI demand leads at 1.61x
- Bonfiglioli Transmissions IPO subscribed 0.73x on Day 2
- sHNI category leads with 1.61x subscription
- Retail demand rises to 0.89x; QIB remains flat at 0.08x
- Issue closes on October 19, 2026, with listing on October 23, 2026
*this image is generated using AI for illustrative purposes only.
Bonfiglioli Transmissions IPO saw its overall subscription rise to 0.73x on Day 2, driven by strong sHNI demand at 1.61x and a retail jump to 0.89x, while QIB interest stayed flat at 0.08x.
Subscription Status
The issue witnessed a steady increase in participation across non-institutional categories on the second day. The cumulative subscription improved from 0.48x on Day 1 to 0.73x on Day 2. While the total subscription remains below 1x, the momentum in the Non-Institutional Investors (NII) and Retail segments indicates growing investor interest as the window progresses.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 15-10-2026 | 0.08x | 1.05x | 0.64x | 0.57x | 0.48x |
| Day 2 | 16-10-2026 | 0.08x | 1.61x | 1.00x | 0.89x | 0.73x |
Category-wise Breakdown
Super High Net Worth Individuals (sHNI) emerged as the strongest category, with subscription crossing the 1x mark to close at 1.61x. This represents a significant surge from the 0.92x reported in the previous update for this category. The bHNI segment also showed robust growth, rising to 1.61x on Day 2.
Retail investors demonstrated healthy appetite, moving from 0.57x on Day 1 to 0.89x on Day 2. In contrast, Qualified Institutional Buyers (QIB) maintained a wait-and-watch approach, with subscription remaining unchanged at 0.08x throughout the day. Employee subscriptions stood at 1.82x, reflecting internal confidence.
Intra-day Timeline
Demand picked up pace during the morning session on Day 2, particularly in the NII and Retail segments, with the total subscription ticking up by nearly 20% between 11:15 AM and 1:15 PM.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.08x | 1.34x | 0.74x | 0.61x |
| 12:15 | 0.08x | 1.49x | 0.82x | 0.67x |
| 13:15 | 0.08x | 1.61x | 0.89x | 0.73x |
Offer Details
The IPO features a price band of ₹558.00000 - ₹586.00000 per share. The minimum bid quantity is set at 25 shares. The offer is open for subscription from October 15, 2026, and will close on October 19, 2026.
About the Company
Bonfiglioli Transmissions Limited is one of India's largest technology-led mechanical and electro-mechanical power transmission solutions providers. The company manufactures precision-engineered gear motors, gearboxes, and drive systems across three verticals: Industry & Automation, Off-Highway Mobility, and Wind Industry. It holds leading market shares of 25%, 32%, and 67.9% respectively in these segments. Backed by its Italian parent, Bonfiglioli S.p.A., the company operates three manufacturing facilities in Tamil Nadu and Maharashtra and serves over 930 customers, including major OEMs like JCB and Suzlon.
Financial Highlights
The company has demonstrated consistent revenue growth and stable margins in recent periods.
| Metric | FY2025 (₹ crore) | FY2024 (₹ crore) | H1 FY2026 (₹ crore) |
|---|---|---|---|
| Revenue from Operations | 2013.52 | 960.35 | 1131.86 |
| Profit Before Tax | 325.23 | 155.51 | 199.91 |
| Profit After Tax | 237.87 | 114.96 | 148.58 |
Note: FY2025 data refers to the period ending 31/12/2025; H1 FY2026 refers to period ending 30/06/2026.
Objects of the Issue
- Offer for Sale: The company intends to carry out an Offer for Sale of equity shares by the Promoter Selling Shareholder.
- Listing Benefits: Aims to enhance visibility, brand image, and provide liquidity through listing on stock exchanges.
- Proceeds Utilisation: All offer proceeds will be received by the Promoter Selling Shareholder after deducting expenses and taxes; the company will not receive proceeds.
Risk Factors
- Supplier Dependence: Reliance on a limited number of suppliers, including related party Bonfiglioli Riduttori S.p.A., which accounted for up to 19.98% of raw material purchases.
- IP License Dependency: Operations depend on a non-exclusive license from BSPA to use the 'Bonfiglioli' brand, terminable with notice.
- Customer Concentration: Top 10 OEM customers contributed 31.72%–37.83% of revenue, with no long-term binding purchase commitments.
- Raw Material Volatility: Raw materials constitute ~61.53%–64.77% of revenue, exposing the company to global commodity price fluctuations and import duties.
What's Next
The IPO closes on October 19, 2026. Allotment is scheduled for October 21, 2026, with the listing date set for October 23, 2026.
Will the persistent lack of QIB interest at 0.08x impact the post-listing price stability and institutional support for Bonfiglioli Transmissions?
How might the termination of the non-exclusive brand license from the parent company affect the company's long-term valuation and investor confidence?
Can the company sustain its recent revenue growth trajectory given its heavy reliance on raw material imports and exposure to global commodity price volatility?
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