Bonfiglioli Transmissions IPO Day 2: GMP at 24%; Check subscription status. Should you subscribe?

ETMarkets.com

On Day 1, the IPO was subscribed to 48% overall against 3.02 crore shares on offer. The Retail Individual Investors (RIIs) category witnessed relatively stronger demand, with subscriptions reaching 57% against 1.51 crore shares reserved for the segment.

The Rs 2,533.66-crore IPO is entirely an offer for sale (OFS) of 4.32 crore shares. As the issue does not include a fresh issue of shares, the company will not receive any proceeds from the IPO. Instead, the entire amount raised through the offering will go to the selling shareholders.

The company has fixed the IPO price band at Rs 558-586 per share. The issue will close on October 19, 2026, while the basis of allotment is expected to be finalised on October 21.

The shares are tentatively scheduled to list on the BSE and NSE on October 23, 2026.

Retail investors can apply for a minimum of 25 shares per lot. At the upper end of the price band of Rs 586 per share, the minimum investment works out to Rs 14,650.

Axis Capital, BNP Paribas, ICICI Securities and Jefferies India are the book-running lead managers for the issue, while MUFG Intime India has been appointed as the registrar.

Bonfiglioli Transmissions IPO Subscription Status

Bonfiglioli Transmissions' IPO witnessed a mixed response from investors on Day 1, with the issue subscribed to 48% overall against 3.02 crore shares on offer.

Among investor categories, Non-Institutional Investors (NIIs) showed the strongest demand, subscribing to 78% of their allocated portion against 64.78 lakh shares on offer. Retail Individual Investors (RIIs) subscribed to 57% of their reserved portion, compared with 1.51 crore shares available in the category.

Meanwhile, Qualified Institutional Buyers (QIBs) subscribed to 8% of their allocated portion against 86.37 lakh shares on offer.

Bonfiglioli Transmissions IPO GMP Today

Bonfiglioli Transmissions IPO's latest grey market premium (GMP) stood at Rs 140 per share, representing a premium of approximately 23.89% over the upper end of the IPO price band of Rs 586. At this GMP, the estimated listing price works out to around Rs 726 per share, based on current grey market trends.

However, the GMP is an unofficial indicator of market sentiment and does not guarantee the actual listing price or listing gains. The premium may fluctuate before the shares make their stock market debut.

Should you subscribe to the Bonfiglioli Transmissions IPO?

According to Anand Rathi's research report, Bonfiglioli Transmissions is valued at 47.7 times its CY26 price-to-earnings (P/E) ratio and 60.7 times its CY26 enterprise value to EBITDA (EV/EBITDA) at the upper end of the price band. This implies a market capitalisation of Rs 1,10,166 million, making the IPO appear fully valued.

The brokerage noted that rising industrial modernisation and increasing adoption of automation offer long-term growth opportunities for the company. However, cyclical demand in end-user industries, competitive pressures and volatility in input costs remain key risks.

Going forward, industrial capital expenditure, greater automation adoption and the expansion of renewable energy could support business growth. Taking these factors into account, Anand Rathi has assigned a "Subscribe for Long Term" rating to the IPO.

About Bonfiglioli Transmissions Ltd.

Bonfiglioli Transmissions Ltd. is one of India's leading technology-driven companies offering mechanical and electromechanical power transmission and industrial drive solutions. Its product portfolio includes high-precision gearboxes, gear motors, electric motors, variable frequency drives, servo motors and precision drives for robotics and automation. The company serves three key segments: Industry and Automation Solutions, Off-Highway Mobility and Wind Industry, catering to both original equipment manufacturers (OEMs) and end-users.

As of June 30, 2026, the company had 71 customer sales and service touchpoints across India, including three manufacturing facilities, 13 sales offices, 13 authorised third-party service facilities and 44 authorised dealers operating 54 outlets. Its supplier network comprised 285 suppliers, including 215 in India and 70 overseas across countries such as Italy, China, the US and Germany. The company had 1,032 personnel, including on-roll employees and contract workers.