- IPO opens October 15: Price band fixed at ₹558–586; subscription closes October 19
- Anchor book attracts ₹759.26 crore: BlackRock, SBI Mutual Fund and other global and domestic investors participate
- Entirely an offer for sale: Promoter Bonfiglioli S.p.A. to sell up to 4.32 crore shares; company receives no IPO proceeds
- ₹11,017-crore valuation: Promoter holding expected to decline from 100% to 77% after the offer
- Engineering drives the business: Gearboxes, gear motors and industrial drive systems serve automation, mobility and wind applications
- Gujarat footprint: Ahmedabad and Surat representative offices, five dealers and 13 service centres
R MANICKAVASAGAM
AHMEDABAD, OCT 14
Can a nearly seven-decade global engineering legacy, backed by growing industrial demand for precision drive systems, translate into investor appetite for a ₹2,534-crore public offering? Bonfiglioli Transmissions Limited is putting that proposition to the test as its initial public offering (IPO) opens on Thursday, October 15, following an anchor-investor fundraising of ₹759.26 crore.
The company allotted approximately 1.30 crore equity shares to anchor investors at ₹586 apiece, the upper end of its price band of ₹558–586. Participants included BlackRock, Goldman Sachs Asset Management, Abu Dhabi Investment Authority, SBI Mutual Fund and other domestic and international investment institutions.
The IPO will close on October 19. Investors can bid for a minimum of 25 shares and in multiples of 25 thereafter, translating into a minimum retail application of ₹14,650 at the upper price band.
Entirely an offer for sale
The issue comprises an offer for sale of up to 4,32,39,042 equity shares by promoter Bonfiglioli S.p.A., with no fresh issue component. Consequently, the company will not receive proceeds from the IPO; the proceeds will go to the selling promoter.
The offer reserves 50% for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors, subject to the applicable allocation provisions. The company’s stated pre- and post-issue market capitalisation is approximately ₹11,016.56 crore, while the promoter’s holding is expected to fall from 100% to 77%.
Engineering for industrial transformation
Bonfiglioli Transmissions, the Indian subsidiary of Italy-based Bonfiglioli S.p.A., manufactures mechanical and electro-mechanical power transmission products, including gearboxes, gear motors and drive systems. Its solutions serve industrial automation, off-highway mobility and wind applications.
The company’s legacy rests on the Bonfiglioli brand, which has nearly 70 years of global presence and more than 25 years of operations in India.
Gujarat emerges as a strategic market
Explaining the company’s regional presence, Sanjay Patwari, Director of Strategic Marketing, said: “We have representative offices in Ahmedabad and Surat; 5 dealers and 13 service centres. Further, some of the major engineering, pharma, renewable energy and other sectors.”
The footprint places the company close to Gujarat’s engineering, pharmaceutical, renewable-energy and industrial customers, although the company did not provide a state-wise revenue contribution in the supplied briefing.
R&D remains central to growth
Asked about research and development expenditure, Kennedy V. Kaipally, Managing Director, said: “About four percent of the company’s annual revenue is ploughed back for R&D.”
The commitment is significant for a business whose competitiveness depends on precision engineering, product reliability and evolving industrial requirements.
The equity shares are proposed to be listed on the BSE and the NSE on October 23, subject to completion of the issue process and applicable approvals.