Bonfiglioli Transmissions IPO Day 3: GMP Hits 22% with 99% Subscription Rate — Is It Time to Invest?

Bonfiglioli Transmissions’ initial public offering (IPO) is currently in its final bidding phase, closing today, October 19, 2026. The company aims to raise approximately Rs 2,533.66 crore through an offer for sale (OFS) of 4.32 crore shares, with no fresh issue component. The shares are priced between Rs 558 to Rs 586 each, and the basis of allotment is expected to be finalised on October 21, with a tentative listing slated for October 23 on both the BSE and NSE. As of Day 2, the overall subscription rate stood at 99%, with strong participation from Retail Individual Investors (RIIs), who subscribed 1.16 times their reserved portion.

The grey market sentiment surrounding Bonfiglioli Transmissions’ IPO indicates a current grey market premium (GMP) of Rs 130 per share, translating to a premium of about 22% over the upper IPO price band. However, it’s important to note that this premium is an unofficial sentiment indicator and does not ensure actual listing gains. Investor interest appears to be growing, particularly among Non-Institutional Investors (NIIs), who showed higher subscription levels compared to Qualified Institutional Buyers (QIBs), who subscribed only 16% of their reserved portion.

For Indian investors, the performance of Bonfiglioli Transmissions in the IPO market reflects broader trends in industrial modernization and automation. While the company’s valuation appears to be on the higher side, the long-term growth potential is supported by rising demand for automation solutions. Research analysts recommend a “Subscribe for Long Term” rating, suggesting that despite cyclical risks, increasing capital expenditure and automation trends could benefit investors willing to take a longer-term view in this sector.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)