Bondada Engineering IPO: GMP, Subscription Period and other key details to know before investing

Bondada Engineering IPO: The subscription period for Bondada Engineering’s initial public offering (IPO), which is a provider of EPC services, will start on August 18, today.

Bondada Engineering is a Hyderabad-based firm that offers services like engineering, procurement, and construction and operations and maintenance to the customers across India in industries like telecom and solar energy.

The IPO for Bondada Engineering will begin on August 18 and end on August 22. On August 25, the company will fix the basis for allocation, and on August 28, it will start issuing refunds. The eligible investors’ demat accounts will probably receive the Bondada Engineering shares on August 29.

Bondada Engineering IPO shares are anticipated to list at BSE SME platform on August 30, Wednesday.  The company intends to use the gross proceeds from the issue to meet long-term working capital requirements and for general corporate purposes, according to its Red Herring Prospectus.

Bondada Engineering IPO Price

The shares in the Bondada Engineering IPO will be sold at a fixed price of Rs.75 per equity share. Each share has a face value of Rs.10.

Bondada Engineering IPO Size

IPO Size: The 56.96 lakh new equity shares that make up the Bondada IPO total 42.72 crore. No offer for sale element is present. 1,600 shares constitute the IPO’s smallest lot size. Retail investors must make a minimum investment of 120,000.

35% of the shares in the IPO have been set aside by the company for retail investors. There are 2.88 lakh shares in the market maker portion.

Bondada Engineering IPO GMP

The Bondada Engineering IPO GMP (Grey Market Premium), is Rs. 20 per share, according to topsharebrokers. It means shares of Bondada Engineering are currently trading in the grey market at a 20 percent premium to their issue price. Bondada Engineering’s IPO listing is anticipated to occur at 95 per share, which is 26.67% higher than the GMP as of today and the IPO price.

Bondada Engineering Financials

In comparison to FY22, company reported a net profit of 18.25 crore, up from 10.13 crore. Revenue for the company increased from 334.21 crore in FY22 to 370.95 crore in FY23.

Bondada Engineering IPO Registrar, Lead Manager and Promoters

KFin Technologies Ltd. is the registrar and Vivro Financial Services Private Ltd. is the lead manager for the public issue. The company’s promoters are Satyanarayana Baratam, Neelima Bondada, and Raghavendra Rao Bondada.

 

Key Performance Indicator for Bondada Engineering

KPI Values
P/E (x) 6.56
Market Cap (₹ Cr.) 162.02
ROE 22.77%
ROCE 35.63
Debt/Equity 1.07