IPO closes on 19 Oct'26
Bonfiglioli Transmissions Limited
Minimum Investment
₹ 14,650 / 25 shares
Our Verdict:
Neutral
- Earnings are compounding steadily rather than spiking: PAT rose from ₹148.49 crore (CY23) to ₹237.87 crore (CY25), up 31% and 22% in the last two years, as EBITDA margin widened from ~14.3% to ~18.3% on revenue growth of only ~9% a year. The six months to June 2026 extended the trend (revenue +17.9%, PAT +29.2% versus the year-ago half).
- Quality is good but tied to the parent: operations run on a licence and intercompany service agreements with Bonfiglioli S.p.A., and a related entity is also the largest supplier (~16–20% of purchases) with no supply agreement. Sourcing terms and technology access therefore depend partly on a related party that is also the seller in this offer.
- Valuation leaves limited cushion: the implied market value is ~46x CY25 earnings and ~11x book value against an RoNW of ~24%. The net-cash balance sheet and rising margins support quality, but the price assumes the faster 2026 growth continues rather than the ~9% revenue growth of CY24–CY25.
About the company
Founded in
23 Jun'98
Managing director
Kennady V Kaippally
- Bonfiglioli Transmissions Limited (formerly Bonfiglioli Deepak Private Limited), the Indian arm of the Bonfiglioli Group, makes gearboxes, gear motors, drives, variable frequency drives, servo drives and precision drives for Industry & Automation, Off-Highway Mobility and Wind applications.
- It operates three plants (Thirumudivakkam and Mannur in Tamil Nadu, Talegaon in Maharashtra) and an India R&D centre in Chennai, with over 11,800 SKUs as of December 31, 2025.
- The financial year ends December 31: total income grew from ₹1,701.80 crore (CY23) to ₹2,023.59 crore (CY25), and the six months to June 30, 2026 delivered revenue of ₹1,139.17 crore and PAT of ₹148.58 crore.
- Promoters: Sonia Bonfiglioli, Luciano Bonfiglioli, Luisa Lusardi, BON-FI S.r.l. and Bonfiglioli S.p.A.
STRENGTHS
- Bonfiglioli Transmissions Limited (formerly Bonfiglioli Deepak Private Limited), the Indian arm of the Bonfiglioli Group, makes gearboxes, gear motors, drives, variable frequency drives, servo drives and precision drives for Industry & Automation, Off-Highway Mobility and Wind applications.
- It operates three plants (Thirumudivakkam and Mannur in Tamil Nadu, Talegaon in Maharashtra) and an India R&D centre in Chennai, with over 11,800 SKUs as of December 31, 2025.
- The financial year ends December 31: total income grew from ₹1,701.80 crore (CY23) to ₹2,023.59 crore (CY25), and the six months to June 30, 2026 delivered revenue of ₹1,139.17 crore and PAT of ₹148.58 crore.
- Promoters: Sonia Bonfiglioli, Luciano Bonfiglioli, Luisa Lusardi, BON-FI S.r.l. and Bonfiglioli S.p.A.
RISK FACTORS
- Parent and Related-Party Dependence: Relies on a licence agreement and intercompany service agreement with Bonfiglioli S.p.A., and the largest supplier is a related entity at ~16–20% of purchases without a supply agreement.
- Supplier and Input Cost Exposure: The top 10 suppliers were ~42–48% of purchases with no definitive agreements, and raw material prices and import duties (inputs sourced from Vietnam, Japan, China and Italy) can swing margins.
- End-Market Cyclicality: Demand is concentrated in industrial automation, off-highway and wind, and depends on a limited set of OEM customers and capital-spending cycles.
- Manufacturing Disruption: Unscheduled disruption at any of the three plants, or product defects and weak after-sales service, could affect deliveries and the brand.
- Parent Sell-Down and Valuation: The offer is entirely a sale by the parent, so the company receives no proceeds, and promoter holding falls from 100% to roughly 77%; the implied ~46x CY25 earnings leaves limited room for slippage.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ Up to ₹2,533.66 crore
Fresh Issue
₹ Nil
OFS
₹ Up to ₹2,533.66 crore
Price range
₹ 558 - 586
Lot size
25 shares
Issue Objective
- This is entirely an Offer for Sale of up to 4,32,39,042 equity shares by the promoter selling shareholder, Bonfiglioli S.p.A. (weighted average cost of acquisition ₹6.77 per share), including an employee reservation of up to 50,000 shares. The company will not receive any proceeds from the offer.
Dates
Bidding open
15 Oct'26
Bidding close
19 Oct'26
Allotment date
21 Oct'26
Refund date
22 Oct'26
Listing
23 Oct'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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