Bondada Engineering Limited is coming up with an IPO amounting to INR 42.72 Crores. The company intends to utilize these funds for meeting their long term working capital requirement.
Bondada Engineering Limited IPO – Important Details
| Bondada Engineering IPO Date | 18th to 22nd August 2023 |
| Bondada Engineering IPO Listing Date | 30th August 2023 |
| Bondada Engineering IPO Price | INR 75 per share |
| Bondada Engineering IPO Lot Size | 1600 Shares |
| Bondada Engineering IPO Total Issue Size | INR 42.72 crores |
| Bondada Engineering IPO Basis of Allotment | 25th August 2023 |
| Bondada Engineering IPO Initiation of Refunds | 28th August 2023 |
| Bondada Engineering IPO Credit of Shares to Demat | 29th August 2023 |
| Bondada Engineering IPO Issue Type | Fixed Price Issue IPO |
| Bondada Engineering IPO Listing At | BSE, NSE |
Bondada Engineering Limited IPO – Company Profile
Bondada Engineering Limited is an ISO certified integrated infrastructure company engaged in the business of providing engineering,procurement and construction(EPC) services and operation & maintenance (O&M) services.The company’s customer base mainly include establishments from telecom and solar energy industry.
The company has successfully implemented multiple projects under the leadership of Mr.Raghavendra Rao Bondada and Mr.Satyanarayana Baratam who are also the promoters of the company.
The company has been awarded for their excellence as “Telecom Infrastructure Service Provider” of the year 2021 by Economic Times. The company has also been recognised as “Company of the Year” 2023 by Global India Business Forum.
Bondada Engineering Limited IPO Objective
The key objective behind Bondada Engineering’s IPO is to support the company’s robust growth plans. With the capital raised, the company aims to:
- Working Capital requirement: The main aim of the company is to fund their long term working capital requirement amounting to INR 35 crores,in order to fund the project awarded by Government of India and to support the incremental business requirement .
- General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,ordinary business expense etc
Bondada Engineering Limited IPO Risks And Challenges
Investing in IPOs comes with its own set of risks and challenges. For Bondada Engineering, these are some of the major risks and challenges:
- Dependency on fewer customers:The company is largely dependent on limited customers for a major portion of their revenue. As on 31st March 2023, 54.09% of the company’s outstanding book value comes from their largest customer and 92.49% comes from their top 5 customers. If the inherent risks in their business materializes, high dependency on fewer customers may have an adverse impact on the company.
- Manpower Risk: The business of the company is manpower intensive and if the company is not able to pool contract labours, the project may not be completed on time.
Bondada Engineering Limited IPO Peer Comparison
As the company is engaged in multiple businesses, there are no comparable listed companies in India whose business portfolio is comparable with that of the company’s business. Accordingly, it is not possible to provide an industry comparison.
Bondada Engineering Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 28,709.30 | 33,411.11 | 3 7,058.85 |
| Equity (₹ in lakhs) | 4 ,775.88 | 5,789.41 | 8,241.59 |
| Expenses (₹ in lakhs) | 27,669.17 | 31,956.82 | 34,718.34 |
| Profit and Loss After Tax (₹ in lakhs) | 920.55 | 1,013.53 | 1,825.19 |
| RoNW (%) | 19.27 | 17.51 | 22.77 |
| Diluted EPS only (₹) | 5.91 | 6.51 | 11.43 |
| NAV per Equity Share (₹) | 30.65 | 37.16 | 49.27 |
| Total Assets (in lakhs) | 25,115.46 | 15,761.73 | 17,091.69 |
| Total Liabilities (in lakhs) | 12,315.81 | 9,972.32 | 16,873.87 |
Bondada Engineering Limited IPO – Industry & Market Potential
Infrastructure development has remained a recurring theme in India’s economic development. The launch of flagship policies like National Infrastructure Pipeline (NIP), and PM Gati Shakti plan have provided the coordination & collaboration that was lacking earlier. In its Union Budget FY 2023, the Government has increased the capital expenditure by 35% to nearly ₹ 7.5 lakh crore which indicates the strong Government focus on improving the overall infrastructure landscape in India.
Share of renewable energy in total energy consumption in India has gone up in recent years primarily in response to supportive policy measures by the government. Increasing dependence on imports for its energy needs and rising environmental pollution caused by non-renewable energy usage has prompted the government to promote clean energy sources. As a result, solar, wind, biomass, biogas, and tidal power segments have seen rapid addition in generation capacity.
India has the second largest (in terms of subscriber base) and one of the fastest growing telecom markets in the world. The magnitude of the subscriber base can be gleaned by the net subscriber addition monthly. Between October and November of 2022 Indian mobile industry added nearly 24 million subscribers, taking the overall subscriber base to over one billion.
Bondada Engineering Limited IPO – Type of Offer
Bondada Engineering Limited is coming up with an IPO amounting to INR 42.72 Crores. The company intends to utilize these funds for meeting their long term working capital requirement.
Bondada Engineering Limited IPO Offer Size
Bondada Engineering’s IPO consists of fresh issue amounting to INR 42.72.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 42.72 Crore. This fund will be used to fuel new projects and to meet the company’s long term working capital requirement.
Bondada Engineering Limited IPO Allotment Structure
The IPO allotment structure for Bondada Engineering is planned as follows:
- Market Maker Reservation Portion: As per SEBI regulations, 5.06% of the shares offered through the IPO will be reserved for Market Maker Reservation Portion.
- Non-Institutional Investors (NII): 50% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lahks.
- Retail Individual Investors (RII): The remaining 50% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lahks.
How to apply for a Bondada Engineering IPO through Alice Blue?
- Click the link to log in to the IPO console.
- Select the IPO you wish to apply for from the list of open issues.
- Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
- Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
- When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
- After completing all the steps, read the declaration and click ‘Submit’.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Bondada Engineering IPO Allotment Status on Alice Blue?
To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.
Visit the Link Intime page to determine the status of the allotted IPO.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the India Bondada Engineering IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the India Bondada Engineering IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Bondada Engineering Limited IPO Offer Registrar
The registrar for Bondada Engineering’s IPO is KFIN Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN Technologies Limited
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad 500 032, Telangana, India.
Phone: +91 40 6716 2222
Email: einward.ris@kfintech.com
Website:www.kfintech.com
Bondada Engineering Limited IPO FAQs
1. What is the allotment date of the Bondada Engineering Limited IPO?
The allotment date of the Bondada Engineering Limited IPO is 25th August 2023.
2. What is the price band of Bondada Engineering Limited IPO?
The price band of Bondada Engineering Limited IPO is INR 75 per share.
3. What is the size of the Bondada Engineering Limited IPO?
Bondada Engineering Limited is coming up with an IPO amounting to INR 42.72 Crores. The company intends to utilize these funds for meeting their long term working capital requirement.
4. What is the listing date of the Bondada Engineering Limited IPO?
The listing date of the Bondada Engineering Limited IPO is 30th August 2023.