Mumbai: Global private equity firm Bain Capital has called for banker pitches to take its portfolio company RSB Transmissions, an automotive component maker, to the public markets, two people familiar with the matter said. The move follows the successful listing of another similar portfolio company, Dhoot Transmission, earlier this week.
Pune-based RSB, which manufactures automotive, construction, and off-highway equipment systems and aggregates, is seeking to raise about ₹3,000 crore through an initial public offering (IPO), one of the people cited above said on the condition of anonymity.
“The discussions with the bankers are in early stages, and details around valuation and the exact structure are still being decided,” the person added.
Bain Capital and RSB did not respond to Mint’s requests for comment by the time of publishing.
According to an 11 June report by India Ratings, Bain Capital currently holds 64.3% stake in RSB, following a series of transactions, starting with an initial 30% stake buy two years ago.
In September 2024, Bain Capital invested an undisclosed sum in RSB. As part of the transaction, the private equity firm had said it would provide the resources and global automotive expertise to realize significant organic growth, pursue strategic M&A opportunities, and further establish the company as a global, diversified platform.
This June, RSB completed the acquisition of Setco Auto Systems (SASPL), a leading supplier of MHCV clutch systems and aftermarket drivetrain solutions. The transaction was funded through an equity infusion of ₹525 crore from Bain Capital and another ₹115 crore from RSB’s promoters.
The deal marked a significant step in scaling up RSB’s presence in the automotive components sector and building a systems-led, multi-product platform across the original equipment manufacturer (OEM) and aftermarket segments.
What is RSB Transmission
Founded in 1973 by R.K. Behera and S.K. Behera, RSB specializes in designing and manufacturing components for commercial vehicles, passenger cars, construction and off-highway equipment. Its products include propeller shafts, axles, gearboxes, and related aggregates, serving long standing Tier-1 customers across India and the US.
The company has manufacturing facilities across India, including in Jamshedpur, Pune, Dharwad, Chennai, as well as an international site in Mexico. It serves several OEMs like Tata Motors, Ashok Leyland, VECV, Daimler, Mahindra & Mahindra, and John Deere. In the construction equipment sector, RSB supplies major manufacturers such as CAT, Tata Hitachi, JCB, XCMM, LiuGong, Kobelco, and Komatsu.
In FY25, the company reported consolidated revenue of ₹2,853 crore, compared to ₹3,058 crore a year earlier. Its 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 the company to grow by 4-8% in FY26 with Ebitda margins closer to FY25 levels of 11.6%.
Dhoot IPO
Meanwhile, Bain built another auto platform in 2025 through a significant minority stake in Dhoot, which manufactures wiring harnesses for two- and three-wheelers and advanced models that also power heavy and light commercial vehicles, off-road vehicles, and farm equipment.
Over the years, the company has diversified into electronic sensors and controllers, automotive switches, connection systems, and an array of products for electric vehicles, including charging guns, inlets, off-board chargers, wiring harnesses, and lithium-ion battery assembly.
In April, Dhoot acquired Multilink Pvt. Ltd, which makes electronics and electrical products for two- and three-wheeler makers in India, before it went public earlier this week.