{"id":71177,"date":"2026-10-16T17:54:09","date_gmt":"2026-10-16T12:24:09","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=71177"},"modified":"2026-10-16T17:54:13","modified_gmt":"2026-10-16T12:24:13","slug":"bonfiglioli-transmissions-ipo-day-2-%e2%82%b92533-crore-issue-crosses-halfway-mark-qib-demand-remains-low","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/bonfiglioli-transmissions-ipo-day-2-%e2%82%b92533-crore-issue-crosses-halfway-mark-qib-demand-remains-low\/","title":{"rendered":"Bonfiglioli Transmissions IPO Day 2: \u20b92,533 Crore Issue Crosses Halfway Mark; QIB Demand Remains Low"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p class=\"wp-block-paragraph\">The Bonfiglioli Transmissions IPO has crossed the halfway mark on Day 2, but demand from qualified institutional buyers (QIBs) remains subdued. As of the afternoon of October 16, 2026, the \u20b92,533.81 crore public issue was subscribed approximately 0.84 times, with QIB subscription at just 0.12 times. Investors considering the Bonfiglioli Transmissions IPO should look beyond subscription numbers and assess the company&#8217;s manufacturing business, profitability, valuation and risks before applying.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a class=\"wpil_keyword_link\" href=\"https:\/\/www.equentis.com\/researchandranking\/ipos\"   title=\"IPO\" data-wpil-keyword-link=\"linked\"  data-wpil-monitor-id=\"1726\">IPO<\/a> provides an opportunity to invest in a manufacturer of industrial gearboxes and power transmission systems. However, the issue is entirely an offer for sale, meaning the proceeds will go to the selling shareholder rather than directly to the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bonfiglioli Transmissions IPO Day 2 Subscription Status<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The latest reported figures show differences in demand across investor categories. Non institutional investors and employees have shown stronger interest, while institutional bidding remains comparatively weak.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Investor category<\/th><th>Subscription<\/th><\/tr><tr><td>Qualified institutional buyers (QIBs)<\/td><td>0.12x<\/td><\/tr><tr><td>Non institutional investors (NIIs)<\/td><td>1.39x<\/td><\/tr><tr><td>Retail individual investors<\/td><td>1.01x<\/td><\/tr><tr><td>Employee reservation<\/td><td>1.96x<\/td><\/tr><tr><td>Overall subscription<\/td><td>0.84x<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A subscription of 0.84 times means bids have covered around 84% of the shares available in the relevant categories at that snapshot. The issue remains open until October 19, so the final demand may differ.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Low QIB participation deserves attention because institutional investors often assess business fundamentals, valuation and long term earnings potential. However, their early bidding levels alone cannot determine the IPO&#8217;s eventual performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bonfiglioli Transmissions IPO Details<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The issue opened on October 15 and is scheduled to close on October 19, 2026. Here are the key details investors should know.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>IPO detail<\/th><th>Information<\/th><\/tr><tr><td>Issue size<\/td><td>\u20b92,533.81 crore<\/td><\/tr><tr><td>Price band<\/td><td>\u20b9558 to \u20b9586 per share<\/td><\/tr><tr><td>Lot size<\/td><td>25 shares<\/td><\/tr><tr><td>Minimum investment at upper price<\/td><td>\u20b914,650<\/td><\/tr><tr><td>Issue type<\/td><td>Offer for sale (OFS)<\/td><\/tr><tr><td>Tentative allotment date<\/td><td>October 21, 2026<\/td><\/tr><tr><td>Tentative listing date<\/td><td>October 23, 2026<\/td><\/tr><tr><td>Exchanges<\/td><td>NSE and BSE<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The minimum application amount is calculated at \u20b9586 multiplied by 25 shares. Investors applying at the upper end of the price band should have at least \u20b914,650 available for one lot, excluding any applicable charges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does Bonfiglioli Transmissions Do?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Bonfiglioli Transmissions manufactures mechanical and electromechanical power transmission products, including gearboxes and industrial drive systems. These products help control the speed, torque and movement of machinery used across several industrial applications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Its business operates across three broad areas: industry and automation, off highway mobility, and wind energy. Customers in these sectors require reliable transmission systems for industrial equipment, construction machinery and renewable energy applications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company is part of Italy based Bonfiglioli Group and has operated in India for more than two decades. Demand for industrial automation, infrastructure equipment and wind energy installations could support future growth, although actual performance depends on investment cycles and customer demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Financial Performance and Business Outlook<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One factor supporting investor interest is the company&#8217;s improving operating performance. Reported figures indicate that its EBITDA margin, which measures operating earnings before interest, taxes, depreciation and amortisation as a percentage of revenue, improved between December 2023 and the six months ended June 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Better margins can indicate improved cost management, pricing power or a more profitable product mix. However, investors should examine revenue growth, net profit, cash generation and debt alongside margins to understand the overall financial position.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The industrial automation and renewable energy sectors provide potential growth drivers. At the same time, manufacturing demand can fluctuate with economic conditions, capital expenditure and infrastructure spending.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Is QIB Demand Low?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">QIB subscription of 0.12 times indicates that institutional bids had covered only a small portion of the shares reserved for this category at the reported snapshot.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are several possible reasons for cautious institutional participation. Investors may be evaluating the IPO valuation, the company&#8217;s future earnings potential, industry risks or competing public issues available during the same period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is important not to assume that low QIB demand automatically means the company is weak. Institutional investors may submit bids later in the issue period, and the final subscription figure could change significantly before closing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Retail investors should also avoid using demand from other categories as a substitute for their own assessment of the business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Risks Investors Should Consider<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Bonfiglioli Transmissions IPO has several factors that deserve closer examination.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1. Currency risk: Nearly 30% of its raw materials are imported, according to reported IPO coverage. Changes in the rupee&#8217;s value can increase procurement costs and affect margins if the company cannot pass on those increases to customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. Industrial demand: A slowdown in manufacturing investment or renewable energy installations could affect orders and capacity utilisation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3. Valuation risk: Even a business with improving margins can deliver disappointing investment returns if its IPO valuation is too high relative to future earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. Offer for sale structure: Since the IPO is entirely an OFS, the company will not receive the issue proceeds for expansion or debt repayment. The offering provides an exit route for the existing promoter shareholder and introduces the company to public markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Should You Apply for the Bonfiglioli Transmissions IPO?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The decision depends on your investment horizon, risk tolerance and assessment of the valuation. Investors seeking exposure to industrial manufacturing may find the company&#8217;s established operations and presence across automation, mobility and wind energy worth evaluating.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, low QIB demand, currency exposure and the OFS structure are important considerations. Investors should review the company&#8217;s financial statements, valuation multiples, competitive position and risks outlined in its offer documents before applying.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The grey market premium, where available, should not be treated as a reliable forecast of listing gains. It is unofficial, can fluctuate sharply and does not guarantee the actual listing price.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Bonfiglioli Transmissions IPO has crossed the halfway mark in subscription on Day 2, but institutional demand remains weak. The company offers exposure to industrial manufacturing and potentially growing automation and renewable energy markets, while imported raw materials and valuation remain important risks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investors should monitor final subscription figures through October 19 and assess whether the offer price is justified by the company&#8217;s financial performance. A considered decision based on fundamentals is more useful than applying simply because an IPO is open or expecting immediate listing gains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. What is the Bonfiglioli Transmissions IPO subscription status on Day 2?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As of the afternoon of October 16, 2026, the issue was subscribed approximately 0.84 times. QIB demand stood at 0.12 times, while NII, retail and employee categories showed stronger demand. These are time specific figures, and the final subscription level may change before the IPO closes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. What is the price band of the Bonfiglioli Transmissions IPO?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The price band is \u20b9558 to \u20b9586 per share. Investors can bid within this range according to the IPO&#8217;s application rules. At the upper price of \u20b9586 and a lot size of 25 shares, the minimum application amount is \u20b914,650 for one lot.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. When does the Bonfiglioli Transmissions IPO close?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The IPO opened on October 15, 2026, and is scheduled to close on October 19, 2026. Investors should verify the applicable application and payment deadlines with their broker or bank and avoid waiting until the final minutes to submit an application.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. What is the minimum investment for the Bonfiglioli Transmissions IPO?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The lot size is 25 shares. At the upper price band of \u20b9586, one lot costs \u20b914,650. The actual amount depends on the bid price, and applying does not guarantee that shares will be allotted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Why is QIB subscription important for an IPO?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">QIB subscription indicates demand from institutional investors, including eligible financial institutions and mutual funds. Their participation can provide information about institutional appetite for an issue. However, low QIB demand does not automatically predict poor listing performance or mean that the company is fundamentally weak.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. What does Bonfiglioli Transmissions manufacture?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Bonfiglioli Transmissions manufactures gearboxes, mechanical and electromechanical power transmission products, and industrial drive systems. Its products serve industry and automation, off highway mobility, and wind energy applications. Demand depends on industrial activity, customer investment and the performance of the sectors it serves.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Is the Bonfiglioli Transmissions IPO a fresh issue or an OFS?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The IPO is entirely an offer for sale. Existing shareholders are selling shares to public investors, so the company will not directly receive the sale proceeds. Investors should consider this structure when evaluating the purpose of the listing and the company&#8217;s future capital requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. What are the major risks of the Bonfiglioli Transmissions IPO?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Key risks include imported raw material costs, currency fluctuations, changing industrial demand and the possibility that the IPO valuation does not leave sufficient room for future returns. Investors should also evaluate profitability, cash flow, competition and the company&#8217;s ability to maintain its operating margins.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. When will Bonfiglioli Transmissions IPO allotment and listing take place?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The allotment is tentatively scheduled for October 21, 2026, and the listing for October 23, 2026, on the NSE and BSE. These dates are subject to the official timetable. Investors should verify the final dates and allotment status through the relevant official channels.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Should investors rely on the grey market premium before applying?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No. The grey market premium is an unofficial indicator of sentiment and is not a guarantee of listing gains. It can change with demand, market conditions and investor expectations. Investors should prioritise the company&#8217;s financial performance, valuation and risks rather than basing an IPO decision mainly on the GMP.<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-a377517bdd8f600e0c2e7efd2ef366fd wp-block-paragraph\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis \u2013 Research &amp; Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL &amp; certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bonfiglioli Transmissions IPO has crossed the halfway mark on Day 2, but demand from qualified institutional buyers (QIBs) remains [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":71183,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948],"tags":[],"class_list":["post-71177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/71177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=71177"}],"version-history":[{"count":1,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/71177\/revisions"}],"predecessor-version":[{"id":71187,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/71177\/revisions\/71187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/71183"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=71177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=71177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=71177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}