Bonfiglioli Transmissions IPO Day 3: GMP at 22%, issue subscribed 99%; Should you apply?

Bonfiglioli Transmissions’ initial public offering (IPO) entered its third and final day of bidding on Monday, October 19, 2026. The IPO’s grey market premium (GMP) stood at 22%, down from 30% earlier, suggesting that unofficial market expectations for listing gains have moderated. However, the GMP is an unofficial indicator and does not guarantee the stock’s actual listing performance.On Day 2, the IPO was subscribed 99% overall against 3.02 crore shares on offer.

The Retail Individual Investors (RIIs) category saw relatively stronger demand, with the portion subscribed 1.16 times against 1.51 crore shares reserved for retail investors.The Rs 2,533.66-crore IPO comprises an offer for sale (OFS) of 4.32 crore shares, with no fresh issue component. Consequently, the company will not receive any proceeds from the offering, as the entire amount raised through the OFS will go to the selling shareholders.Bonfiglioli Transmissions 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.Live EventsRetail 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 StatusBonfiglioli Transmissions’ IPO received a mixed response from investors on Day 2, with the issue subscribed 99% overall against 3.02 crore shares on offer.Among investor categories, Non-Institutional Investors (NIIs) led the demand, subscribing 1.71 times their reserved portion, against 64.78 lakh shares on offer.

Retail Individual Investors (RIIs) subscribed 1.16 times their allotted portion, compared with 1.51 crore shares reserved for the category.Meanwhile, Qualified Institutional Buyers (QIBs) subscribed to 16% of their reserved portion, against 86.37 lakh shares on offer.Bonfiglioli Transmissions IPO GMP TodayBonfiglioli Transmissions’ latest grey market premium (GMP) stood at Rs 130 per share, indicating a premium of approximately 22% over the upper end of the IPO price band of Rs 586.

Based on this premium, the estimated listing price works out to around Rs 716 per share.However, the GMP is an unofficial indicator of market sentiment and does not guarantee the actual listing price or listing gains. It 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.Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here(You can now subscribe to our ETMarkets WhatsApp channel)