Bonfiglioli Transmissions, the Indian arm of Italian industrial gearmaker Bonfiglioli Group, is planning an initial public offering (IPO) in Mumbai that could raise around USD 250 million (~INR 2,080 crore), as signalled by some industry reports. This is in line with the trend of multinational corporations (MNCs) cashing in on the revival of Indian equity markets and the attractive valuations in the auto and industrial components space.
According to reports, Axis Capital, ICICI Securities, JPMorgan Chase & Co. and BNP Paribas SA have been appointed as lead managers for the proposed listing. Bonfiglioli IPO is still in the works, and the final size or structure—whether it will be a fresh issue of shares or an offer for sale (OFS)—is yet to be decided.
Strategic Expansion and Market Strength
Bonfiglioli IPO buzz comes after a series of strategic investments by the company in India. The company is investing INR 250 crore to set up new facilities in Cheyyar (Tamil Nadu) and Pune (Maharashtra). The Cheyyar facility, spread over 25 acres, will start operations by 2025 and cater to the growing domestic demand for heavy-duty industrial gearboxes. An INR 100 crore Pune facility for light and medium-duty gearboxes will be operational by 2026.
Bonfiglioli recently inaugurated its first global competence centre—Bonfiglioli Technology Space—in Chennai, with 180 engineers, which will double up soon. This R&D hub is focused on innovation, simulation and testing for gear solutions, to strengthen the company’s global technology leadership.
Bonfiglioli India reported INR 1,700 crore in revenue last year, will close this fiscal with INR 1,850 crore and target INR 2,000 crore by 2026, indicating strong operational growth.
Riding the MNC IPO Wave
Bonfiglioli IPO comes after a series of big listings by global auto and component companies in India. Hyundai Motor raised INR 27,870.16 in a record IPO last October. Carraro India raised INR 1,250 crore, and Tenneco India filed a DRHP for an INR 3,000 crore IPO.
The MNC-backed IPO wave is driven by India’s well-developed auto component sector, which is attracting investor interest. With high capex, Make in India policies and technology investments, the sector offers a perfect mix of growth and value. Many of these IPOs, including Carraro and Tenneco, have had Offers for Sale (OFS), and Bonfiglioli’s IPO may also have an OFS component.
Sector Overview and Investor Outlook
Bonfiglioli’s products, including gearboxes and gearmotors, are used in industries such as mobile machinery, wind turbines, food processing, packaging, cement and steel. As India ramps up manufacturing and renewable energy plans, the demand for such industrial components will rise.
Analysts say IPO-bound companies with a strong domestic presence, export potential and alignment with India’s industrial and infrastructure growth story are in a sweet spot. The Indian auto component industry’s valuations have become more attractive, creating a ripe environment for both primary and secondary share sales.
Conclusion
As deliberations continue, Bonfiglioli’s proposed IPO is more than just a capital-raising event—it marks a significant moment in its Indian growth journey and reflects broader confidence in India’s industrial economy. If launched, the listing could not only enhance Bonfiglioli’s visibility but also unlock value for its global parent and investors, riding the current surge in cross-border industrial IPOs on Indian bourses.
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