Summary:
RSB Transmissions is exploring a potential ₹3,000-crore IPO to fund expansion and acquisitions. The company recently acquired Setco Auto Systems for ₹185 crore and targets ₹10,000 crore revenue in five years.
RSB Transmissions backed by Bain Capital has entered into initial conversations with investment banks regarding a potential ₹3,000-crore initial public offering as the auto components maker looks to raise funds to fuel its growth. The talks are at a preliminary stage and the valuation, IPO size, and timing of the listing have yet to be worked out, as per a previous stock market listing by another Bain-backed auto component firm
Bain Capital Owns 64.3% in RSB Transmissions Company
In early September 2024, Bain Capital made a strategic investment decision to grow RSB Transmissions on an organic basis, make acquisitions, and expand its footprint globally. Bain Capital owns 64.3% as of May 31, 2026, while the company promoters and their families hold the remaining 35.7%.
The potential listing would see current shareholders cash out some of their stakes, while the company raises funds to fuel its growth. It is still unclear whether the ₹3,000-crore IPO will be through fresh issuance, offer for sale, or a combination of both.
RSB Transmission Acquired Setco Auto Systems Worth ₹185 Crore in June 2026
RSB Transmission expanded its commercial vehicle clutch product portfolio in June 2026 after acquiring a majority stake in Setco Auto Systems, a manufacturer of medium and heavy commercial vehicle clutch systems and aftermarket drivetrain solutions, for around ₹185 crore. Share Price of Setco Auto Systems
The company aims to complete the acquisition by FY27. An equity infusion of ₹525 crore from Bain Capital and ₹115 crore from RSB Transmission promoters has enabled the ₹185-crore acquisition of Setco Auto Systems.
The ₹3,000-Crore IPO will Enable RSB Transmissions to Create A Multi-Product Platform
RSB Transmissions company is a manufacturer of components and systems for commercial, passenger cars, and construction and off-highway equipment. It was founded back in 1973 by R.K. Behera and S.K. Behera. It produces and supplies propeller shafts, axles, gearboxes, transmission components, and aggregates.
List of Auto Ancillary Sector Stocks
The company has 15 manufacturing plants across India, with two abroad in Mexico, supported by its sales offices in Jamshedpur, Pune, Dharwad, and Chennai. Its customer base consists of automobile and commercial vehicle manufacturers, equipment makers, and other suppliers. RSB Transmission’s FY25 revenue came to ₹2,853 crore, down from ₹3,058 crore in FY24. Its net profit for FY25 was ₹37.38 crore compared to ₹130.96 crore in FY24. Its EBITDA came to 11.6% for FY25, down from 14.2% in FY24.
The revenue growth is expected to come in at 4%-8% for FY26, with margins broadly stable to that of the last fiscal year. Looking ahead, the company targets to scale its revenues from the current level of around ₹3,000 crore to about ₹10,000 crore in the next five years with the help of acquisitions, increased exports, and the introduction of new mobility products.
