The Indian unit of Italian gearmaker Bonfiglioli Group, Bonfiglioli Transmissions, is reportedly considering an initial public offering (IPO) in Mumbai that could raise approximately $250 million. Sources familiar with the matter indicate that the company, which specializes in gearboxes and gearmotors for mobile machinery and wind turbines, has engaged Axis Capital and ICICI Securities as advisors for the potential offering.

Bonfiglioli India's move towards a public listing aligns with the strong momentum in the Indian IPO market, which is seeing diverse sectoral options attracting investor interest. The company's expansion plans and strategic focus on the growing industrial automation sector in India make it an attractive prospect for investors.

The Indian industrial automation market is experiencing significant growth, with a valuation of $14.18 billion in 2024 and projected to reach $39.65 billion by 2033, exhibiting a CAGR of 12.10%. Similarly, the industrial gearbox market is growing at a CAGR of 4.09% and is expected to reach $1.46 billion by 2033. Bonfiglioli India is strategically positioning itself to capitalize on this growth through significant investments in manufacturing, research and development, and workforce expansion.

Bonfiglioli India has allocated ₹320 crore ($38.5 million) to establish a 25-acre manufacturing facility in Cheyyar, Tamil Nadu, which is slated to open in 2025. This facility will focus on producing heavy-duty industrial gearboxes for energy-intensive sectors such as cement, steel, and renewable energy. Additionally, the company has established a Technology and Innovation Hub in Chennai, employing 180 engineers, to accelerate R&D in IoT-enabled and AI-integrated gear solutions.

These investments align with the Indian government's "Make in India" and "Digital India" initiatives, which are driving demand for localized, high-tech manufacturing. Bonfiglioli India aims to achieve a turnover of ₹1,900 crore ($225 million) by 2025, demonstrating its confidence in capturing a significant share of the market.

The IPO pipeline in India remains strong, with fundraising expected to maintain its momentum, offering investors a wide array of sectoral options. Domestic investors, supported by robust mutual fund inflows, are playing a crucial role in deal pricing. IPO activity is likely to center on mid-sized companies seeking to unlock value and raise capital for expansion. As of May 31, mutual fund assets under management had reached a record ₹72.2 lakh crore, with ₹13.3 lakh crore added in the previous year.