Bonfiglioli Transmissions shares list flat at IPO price of Rs 586 on BSE, NSE — should you buy, sell or hold?

The grey market premium (GMP) had indicated an estimated listing gain of around 11 per cent on the morning of October 23, according to InvestorGain. Investors must note that the GMP is an unofficial indicator of investor sentiment and does not guarantee listing gains. However, the actual listing price remained unchanged from the IPO issue price, meaning investors who received shares in the public issue did not make any listing gains.

Read Also: Tonbo Imaging shares list at 66% premium on BSE, NSE — should you buy, sell or hold? The Rs 2,533.66-crore IPO closed on October 19 with an overall subscription of 46.05 times, according to exchange data. Investors submitted bids for 1,39,44,35,300 shares against 3,02,82,330 shares on offer. Qualified Institutional Buyers (QIBs) led the subscription, with their reserved portion subscribed 120.78 times.

The Non-Institutional Investors (NIIs) category was subscribed 40.39 times, while the Retail Individual Investors (RIIs) portion received 5.90 times subscription. The company is an Indian subsidiary of Italy-based Bonfiglioli S.p.A. The IPO is entirely an offer for sale, meaning the proceeds will go to the promoter selling its shares rather than to the company. The IPO opened for subscription on October 15 and closed on October 19.

The price band was fixed at Rs 558-586 per share, with a lot size of 25 shares. At the upper end of the price band, the minimum investment for a retail applicant was Rs 14,650. Should you buy, sell or hold? Mahesh M. Ojha, Vice President Research & Business Development at Kantilal Chhaganlal Securities Pvt. Ltd. said, "IPO allotted investors who have short term view can book partial listing gain, remaining can be held.

Long-term investors can hold the same." Another analyst, Sarvam Goel, Founder of Pocketful, said, "Investors who received allotment can consider booking profits on listing. Those who missed the IPO can wait for more comfortable valuations before entering." About Bonfiglioli Transmissions Bonfiglioli Transmissions provides mechanical and electromechanical power transmission and industrial drive solutions.

Its products include precision-engineered gear motors, gearboxes and drive systems used by original equipment manufacturers (OEMs) and end-users. The company serves customers across industrial automation, off-highway mobility and wind energy, among other applications.