⚠️ Neutral
Listed
Industrial Manufacturing
Bonfiglioli Transmissions Limited IPO
₹2534 Cr · Offer for Sale (OFS) · Industrial Manufacturing
Price Band
₹558 – ₹586
Lot: 25 shares (₹14,650)
GMP (Grey Market)
₹66 (+11.26%)
Est. listing ₹652
Issue Size
₹2534 Cr
Offer for Sale (OFS)
Market Cap
₹11016.56 Cr
At upper band
P/E Ratio
46.3x
P/S: 5.5x
Listing Date
23 Oct 2026
BSE & NSE
IPO Timeline
✓
Opens
15 Oct 2026
✓
Closes
19 Oct 2026
✓
Allotment
20 Oct 2026
✓
Refund
21 Oct 2026
✓
Listing
23 Oct 2026
IPO India Hub: Neutral
Conviction
5/10
The company trades at 2.01× sector midpoint (46.3x P/E vs. 23x manufacturing baseline), exceeding the Subscribe threshold despite strong ROCE of 20.03% and a bullish 29.86% GMP. However, NPM of 11.8% falls well below the 15% margin cushion needed to justify premium valuation, and recent revenue volatility (₹2023.6 Cr in FY-1 to ₹1139.2 Cr in FY0) raises execution concerns.
Listing Performance
Issue Price
₹586
Allotment price
Listing Price
₹586
+0% on listing day
Current Price (CMP)
₹625.65
+6.8% vs issue
Listed On
23 Oct 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Strong capital efficiency and returns
ROCE of 20.03% demonstrates efficient deployment of capital and is well above the cost of capital for most Indian manufacturers. This metric suggests the company generates meaningful value from its asset base and reinvested earnings, supporting long-term shareholder returns.
✓ Strength
Bullish market sentiment and promoter retention
Grey market premium of 29.86% signals strong investor demand on the Mainboard. Promoter holding remains substantial at 77% post-issue, aligning founder interests with minority shareholders and reducing agency risk.
⚠ Risk
Severe revenue contraction in latest year
Revenue collapsed from ₹2023.6 Cr (FY-1) to ₹1139.2 Cr (FY0), a 44% year-on-year decline that is not explained in the data. This sharp drop raises questions about market conditions, customer concentration, or operational disruptions that must be clarified before investment.
⚠ Risk
Valuation premium without margin justification
At 46.3x P/E (2.01× sector midpoint), the company trades at a 100% premium to the manufacturing sector average despite an NPM of only 11.8%, well below the 15% threshold that would justify such a multiple. Investors are paying for growth or quality that is not yet visible in profitability.
₹ Valuation
Premium valuation at sector ceiling
The 46.3x P/E ratio sits at exactly 2.01× the 23x manufacturing midpoint, placing it at the boundary of the Avoid threshold. While ROCE and GMP are supportive, the 11.8% NPM does not meet the margin bar to justify this premium, and the 8.6% revenue CAGR over two years is below the 20% growth benchmark for conviction.
👁 Watch
Post-listing revenue trajectory and guidance
Investors must closely monitor Q1 FY2027 results and management guidance on the FY0 revenue decline. Any further contraction or failure to return to FY-1 levels would signal structural headwinds and justify significant downside re-rating.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Bonfiglioli Transmissions Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹2013.53 Cr
Net Profit
₹237.87 Cr
Industry
Industrial Manufacturing
Issue Type
Offer for Sale (OFS)
Promoters
SONIA BONFIGLIOLI, LUCIANO BONFIGLIOLI, LUISA LUSARDI, BON-FI S.R.L., AND BONFIGLIOLI S.P.A.
Lead Managers
Axis Capital, BNP Paribas, ICICI Securities and Jefferies India
Quick Actions
Frequently Asked Questions
Neutral. The company trades at 2.01× sector midpoint (46.3x P/E vs. 23x manufacturing baseline), exceeding the Subscribe threshold despite strong ROCE of 20.03% and a bullish 29.86% GMP. However, NPM of 11.8% falls well below the 15% margin cushion needed to justify premium valuation, and recent revenue volatility (₹2023.6 Cr in FY-1 to ₹1139.2 Cr in FY0) raises execution concerns.
The current grey market premium (GMP) is ₹66, which is 11.26% above the upper band price of ₹586. This implies an estimated listing price of around ₹652. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 25 shares. At the upper band price of ₹586, the minimum investment per retail application is ₹14,650. You can apply for up to 13 lots (₹190,450) under the retail category (up to ₹2 lakh).
The IPO opens on 15 Oct 2026. It closes on 19 Oct 2026. Allotment is expected on 20 Oct 2026. Refunds initiate on 21 Oct 2026. Listing on BSE and NSE is on 23 Oct 2026.
The lead managers for the IPO are Axis Capital, BNP Paribas, ICICI Securities and Jefferies India. Check the SEBI filing for the registrar details.
The IPO listed on 23 Oct 2026 at ₹586 against an issue price of ₹586 (+0% on listing day). The current market price (CMP) is approximately ₹625.65 (+6.8% vs issue).
Our analysis is <strong>Neutral</strong>. Consider applying selectively before the issue closes on 19 Oct 2026. The minimum investment is ₹14,650 for one lot (25 shares). The company trades at 2.01× sector midpoint (46.3x P/E vs. 23x manufacturing baseline), exceeding the Subscribe threshold despite strong ROCE of 20.03% and a bullish 29.86% GMP. However, NPM of 11.8% falls well below the 15% margin cushion needed to justify premium valuation, and recent revenue volatility (₹2023.6 Cr in FY-1 to ₹1139.2 Cr in FY0) raises execution concerns.
Our analysis is <strong>Neutral</strong>. Consider applying selectively before the issue closes on 19 Oct 2026. The IPO is priced at a P/E of 46.3x. Market cap at issue price is ₹11016.56 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 25 shares at ₹586 each, costing ₹14,650 per application. The issue closes on 19 Oct 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Bonfiglioli Transmissions Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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