Bondada Engineering Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Bondada Engineer

CMP

2,436.80

+116.00 (5.00%)

₹75

Offer Price

₹ 42.72 Cr

Issue Size

₹ 1,20,000

Min Investment

1,600

Lot size

Time Line

  • 18
    Aug 2023
    Open
  • 22
    Aug 2023
    Close
  • 25
    Aug 2023
    Finalisation of Basis of Allotment
  • 28
    Aug 2023
    Initiation of Refunds
  • 29
    Aug 2023
    Transfer of Shares to Demat Account
  • 30
    Aug 2023
    Listing Date

Objects of the Offer

  • Capitalise on growth opportunities in telecom infrastructure and data services.

  • Renewable energy proving clean and sustainable source of energy for the future.

  • Growth of OFC infrastructure.

  • Deepen its client engagement and increase incremental revenue opportunities from its clients.

  • Increase its Geographical spread with existing services and provide further services where the company is present.

Products & Services

  • The Company is engaged in the business of providing EPC and O&M services.

Strengths

  • Experienced management team.

  • Existing relationship with customers.

  • On time completion of the projects.

  • Quality assurance.

  • Strong management information systems.

Risks

  • The company is dependent on and derive a substantial portion of its revenue from a limited number of customers and over-dependence on one or some of the customers may expose it to liquidity risks, which may adversely affect its business, results of operations and financial condition.

  • The company require sizeable amounts of working capital for the continued operation and growth. Its inability to meet its working capital requirements could have a material adverse effect on the business, results of operations and financial condition.

  • The company has, and continue to, bid for various tenders with Government customers. There can be no assurance that even if its are the lowest bidder (L-1), the projects will be awarded to it or that the projects for which the company has obtained purchase orders or advance work orders will be converted into confirmed orders or that its will actually realize revenues from any such projects.

  • The company may be unable to accurately estimate costs under fixed-price EPC contracts, fail to maintain the quality and performance guarantees under its EPC contracts and the company may experience delays in executing its EPC contracts in timely manner, which may increase the construction costs and working capital requirements, and may have a material adverse effect on the financial condition, cash flow and results of operations.

  • The company is dependent on award of EPC and O&M contracts, which are subject to cancellation and changes in scope of services and, therefore, Its Order Book is not necessarily indicative of the company future revenues or profit. It may result in disputes or contractual penalties due to cost over-runs, delay in delivery, failures to meet contract specifications or delivery schedules, which may adversely affect its business, results of operations and financial condition.

Company Promoters

Promoters Holding

Issue For IPO
22.67%
Pre Holding

86.00%

Post Holding

63.33%

Top Promoters Holding

Financials

All values in Cr

Mar-2021 Mar-2022 Mar-2023 3-Yr trend
Revenue 287.09 (-) 334.11 (16.40%) 370.59 (10.90%)
Gross Profit 287.09 (-) 334.11 (16.40%) 370.59 (10.90%)
Net Income 287.09 (-) 334.11 (16.40%) 370.59 (10.90%)
Assets 287.09 (-) 334.11 (16.40%) 370.59 (10.90%)
Liabilities 287.09 (-) 334.11 (16.40%) 370.59 (10.90%)

Book Running Managers

  • Vivro Financial Services Pvt Ltd

Registrar & Transfer Agent

KFin Techologies Ltd

Karvy Selenium Tow-B,
31&32 Financial Dist,
Nanakramguda - Hyderabad-500032
Phone : 91-40-67162222 Fax: 91-40-23001153/23420814

Company Contact Information

1-1-27/37 Ashok Manoj Nagar,
Kapra,
Hyderabad - 500062
Phone : +91 72070 34662 Email : cs@bondada.net www.bondada.net

Offer Related Information

Initial public issue of 56,96,000 equity shares of face value of Rs. 10/- each of Bondada Engineering Limited ("BEL" or the "Company" or the "Issuer") for cash at a price of Rs. 75/- per equity share including a share premium of Rs. 65/- per equity share (the "Issue Price") aggregating upto Rs. 42.72 crores ("The Issue"), of which 2,88,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 75/- per equity share including a share premium of Rs. 65/- per equity share... More

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