Bain Capital has called banker pitches for RSB Transmissions' ₹3,000 crore IPO. The move follows the listing of Dhoot Transmission, another Bain-backed auto parts firm.
Bain Capital has called for banker pitches to take its portfolio company RSB Transmissions public, two people familiar with the matter said. The Pune-based automotive component maker is seeking to raise about ₹3,000 crore through an initial public offering.
Discussions with bankers are in early stages, one of the people said, declining to be named. Valuation and the exact structure of the IPO are still being decided.
The move follows the listing of Dhoot Transmission, another Bain-backed auto parts company, earlier this week.
Bain Capital holds a 64.3% stake in RSB, according to an India Ratings report from June 11. The private equity firm first bought a 30% stake two years ago and invested an undisclosed sum in September 2024.
In June, RSB completed the acquisition of Setco Auto Systems (SASPL), a supplier of MHCV clutch systems and aftermarket drivetrain solutions. The transaction was funded through a ₹525 crore equity infusion from Bain Capital and another ₹115 crore from RSB's promoters.
RSB manufactures components for commercial and passenger vehicles, along with off-highway equipment. Its product lineup includes propeller shafts, axles, gearboxes, and related aggregates. The company serves Tier-1 customers in India and the US, including Tata Motors, Ashok Leyland, VECV, Daimler, Mahindra & Mahindra, and John Deere. In the construction equipment segment, RSB supplies Caterpillar, Tata Hitachi, JCB, XCMM, LiuGong, Kobelco, and Komatsu.
Founded in 1973 by R.K. Behera and S.K. Behera, RSB has manufacturing facilities in Jamshedpur, Pune, Dharwad, Chennai, and Mexico.
For fiscal 2025, RSB reported consolidated revenue of ₹2,853 crore, down from ₹3,058 crore a year earlier. Net profit narrowed to ₹37.38 crore from ₹130.96 crore in FY24, according to filings sourced by Tofler from the ministry of corporate affairs.
India Ratings expects RSB to grow 4-8% in FY26, with Ebitda margins close to FY25 levels of 11.6%. The rating agency cited the company's diversified product base and customer relationships as supporting factors.
The IPO comes as Bain Capital builds a broader auto components platform in India. The firm's investment in Dhoot Transmission, which makes wiring harnesses and EV components, complements its majority stake in RSB. Dhoot acquired Multilink Pvt. Ltd in April before going public this week.
Bain Capital and RSB did not respond to requests for comment.
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