New Delhi, Oct. 14 -- Bonfiglioli Transmissions, the Indian subsidiary of Italy's Bonfiglioli S.p.A., is launching a Rs.2,533.66-crore initial public offering (IPO) with a price band of Rs.558-586 per share. The issue opens on Thursday and closes Monday.

The company, which manufactures gearboxes, gear motors, and drive systems for industrial machinery, construction equipment, and wind turbines, boasts a strong client base, including JCB India, Schwing Stetter India, Ajax Engineering, and Suzlon Energy. Overseas customers generate 27.5% of total revenue.

Does a debt-free balance sheet and deep customer ties offer enough upside to offset key concerns around profitability, sustainability, and reliance on its parent company?

Bonfiglioli is...