Bonfiglioli Transmissions Ltd.’s IPO entered its final bidding day Monday, Oct. 19, with the offer 0.99 times subscribed at Friday’s close and all sale proceeds going to the selling shareholder.
Bonfiglioli S.p.A. is offering up to 43,239,042 existing shares, with no new shares being issued, according to the company’s red herring prospectus. The transaction is valued at about ₹2,534 crore, and the proceeds will go to the seller rather than Bonfiglioli Transmissions. The price band is ₹558 to ₹586 per share, and a 25-share application lot costs ₹14,650 at the top of the range.
National Stock Exchange of India (NSE) data showed bids for 30,027,100 shares against 30,282,330 shares on offer by Friday, Oct. 16. The qualified institutional buyer portion was subscribed 0.16 times; the non-institutional investor portion reached 1.71 times and the retail portion 1.16 times. Those figures reflect the position before Monday’s final session.
Grey-market premium readings differed. The Economic Times reported ₹130 per share, about 22% of the ₹586 upper price, at 12:12 a.m. EDT (04:12 UTC) Monday, down from 30% earlier. IPOWiz’s 1:10 a.m. EDT (05:10 UTC) snapshot showed ₹125, or 21.33%. Grey-market quotes are unofficial and should not be treated as a forecast of the listing price.
Bonfiglioli supplies transmission and drive products to industrial automation, off-highway mobility and wind customers. Anand Rathi Research recommended subscribing for the long term in an Oct. 14 report, citing potential support from industrial investment, automation and renewable energy. At the upper price band, the report put the company at a CY26 price-to-earnings multiple of 47.7 times and a CY26 enterprise value-to-EBITDA multiple of 60.7 times. It described the valuation as fully priced and cited cyclical end-market demand, competition and input-cost volatility as risks.
The prospectus says allotment is expected Wednesday, Oct. 21, with listing tentatively scheduled for Friday, Oct. 23, on BSE and the NSE.
