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 – Fundamental Analysis
Revenue Growth:
Bondada Engineering has experienced consistent revenue growth from ₹28,709.30 lakhs in 2021 to ₹37,058.85 lakhs in 2023, indicating an upward sales trend.
Profitability:
The company’s profitability has improved over the years, with a profit after tax of ₹1,825.19 lakhs in 2023, compared to ₹920.55 lakhs in 2021, demonstrating enhanced operational efficiency.
Return on Net Worth (RoNW):
RoNW has shown positive fluctuations, increasing from 19.27% in 2021 to 22.77% in 2023, indicating improved profitability in relation to shareholders’ equity.
Earnings Per Share (EPS):
Diluted EPS has risen from ₹5.91 in 2021 to ₹11.43 in 2023, reflecting increased earnings per share for investors.
Net Asset Value (NAV) per Equity Share:
NAV per equity share has grown steadily from ₹30.65 in 2021 to ₹49.27 in 2023, indicating improved asset value per share.
Asset and Liability Management:
Total assets have increased, reaching ₹17,091.69 lakhs in 2023, while total liabilities have also risen, indicating expansion and higher financial obligations.
Summary:
Bondada Engineering Limited’s financials demonstrate robust revenue growth, improved profitability, and enhanced returns for shareholders. However, potential investors should carefully consider the increasing liabilities and assess the sustainability of this growth before investing in the IPO.
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 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 Objective
Bondada Engineering Limited’s IPO aims to raise funds for a long-term working capital requirement of INR 35 crores, supporting a government-awarded project and other business needs. Additional funds will be allocated for general corporate purposes, including technology advancement and expansion.
- 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
Bondada Engineering Limited’s IPO faces risks of heavy customer dependency, with a significant portion of revenue coming from a few clients, potentially impacting the company adversely. Manpower-intensive operations pose a risk of project delays without adequate labor resources.
- 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 – 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 Limited’s IPO comprises a fresh issue of INR 42.72 Crore, intended for funding new projects and fulfilling long-term working capital needs, supporting the company’s growth and operational requirements.
- 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 Bondada Engineering Limited IPO’s allotment structure allocates 5.06% to Market Makers, 50% to Non-Institutional Investors (NIIs), and the remaining 50% to Retail Individual Investors (RIIs) with investments below Rs. 2 lakhs.
- 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?
To apply for the Bondada Engineering IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Bondada Engineering IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Bondada Engineering IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
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?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Bondada Engineering IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Bondada Engineering IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
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 Bondada Engineering IPO:
- Registrar’s Website: Visit the website of KFIN Technologies Limited, the registrar of the 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: [email protected]
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.s
