Bonfiglioli Transmissions IPO to cut promoter stake to 77%

Bonfiglioli Transmissions plans to raise ₹2,534 crore through an offer for sale in an upcoming initial public offering, The Economic Times reported in an Oct. 16 news article.

The proposed sale equals about 1.3 times the company’s 2025 revenue of ₹2,013.5 crore, according to Atlas360 calculations, and would cut the promoter group’s holding to 77% from 100%.

An offer for sale is an IPO structure in which existing shareholders sell stock to public investors. That makes the promoter sell-down central to the transaction, rather than a fresh capital raise for expansion.

Bonfiglioli Transmissions makes precision gearboxes, geared motors and drive systems used in industrial automation, construction, mining, material handling and pharmaceuticals, ET reported. The company was incorporated in 1998 and is promoted by Italy-based Bonfiglioli S.p.A.

The business is spread across three main verticals. Industry and automation solutions account for 41% of revenue, off-highway mobility contributes 25%, and the wind industry contributes 32%, according to the article.

Bonfiglioli Transmissions operates three manufacturing plants, two in Tamil Nadu and one in Maharashtra. Frost & Sullivan, cited by ET, put the company’s 2025 share among domestic manufacturers of yaw and pitch drives for wind turbines at 67.9%.

The company’s financials show faster profit growth than sales growth over the recent period covered in the report. Revenue from operations rose at a 9.2% annual rate to ₹2,013.5 crore between 2023 and 2025, while net profit rose at a 27.4% annual rate to ₹237.9 crore in 2025.

For the six months ended June 2026, revenue increased 17.9% from a year earlier and net profit rose 29.2%, ET reported. The company’s Ebitda margin, a measure of operating profit before depreciation and amortisation as a share of revenue, expanded consistently between the year ended December 2023 and the six months ended June 2026.

Valuation is less straightforward because ET reported that Bonfiglioli Transmissions has no directly comparable listed peer. Its price-to-earnings multiple works out to 46 times based on 2025 net profit and 37 times on annualised 2026 net profit.

ET compared those levels with gearbox, bearing and power-transmission companies including Elecon Engineering, Timken India and Shanthi Gears, which trade at price-to-earnings multiples of 32 to 53. Their annualised FY27 multiples range from 39 to 104, according to the article.

The main operating risk highlighted in the report is foreign-exchange exposure. Bonfiglioli Transmissions sources nearly 30% of its raw materials from overseas, leaving costs sensitive to currency movements.

The company also pays about 4% of revenue to its promoter group as royalty for intellectual property, including use of the Bonfiglioli brand, ET reported. The source material did not provide IPO opening dates, a price band, subscription timetable or listing date.

Source: news article, The Economic Times, Oct. 16, 2026