New Delhi: Bonfiglioli Transmissions, the Indian subsidiary of Italy-based Bonfiglioli Group, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO), and people familiar with the matter pegged the issue size at over Rs 2,000 crore. The IPO is entirely an offer-for-sale (OFS) of 4.7 crore shares by promoter Bonfiglioli S.p.A with no fresh issue component, according to the draft red herring prospectus (DRHP) filed on Monday.
Since the IPO is completely an OFS, the company will not receive any funds from the issue; all the proceeds from the issue will go to the selling shareholder. At present, the promoter holds a 100 per cent stake in the company. Bonfiglioli Transmissions is a technology-driven provider of mechanical and electro-mechanical power transmission and industrial drive solutions.
The Bonfiglioli brand has a global presence spanning nearly seven decades across more than 80 countries. The company manufactures a wide range of mission-critical and highly precision-engineered gearboxes and drive systems used across diverse end-user markets. It primarily caters to three business verticals -- Industry and Automation Solutions, Off-Highway Mobility and Wind Industries, based on the end-use applications. Axis Capital, BNP Paribas, ICICI Securities and Jefferies India have been appointed as merchant bankers to assist the company in its maiden public offering.
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