Bondada Engineering share price soars 1423.2% in nearly 8 months; here’s why

On Wednesday’s trading session, Bondada share price jumped nearly 5% to touch a 52-week high after the company, in a filing, notified the bourses about its incorporation of a wholly owned subsidiary, Bondada Green Engineering Pvt Ltd. Bondada Engineering share price opened at 1,066 apiece on the BSE; the stock touched an intraday high of 1,155 and an intraday low of 1046.70 on Wednesday. 

The company stated that the new subsidiary’s primary goal was to produce metal frames, or skeletons, for use in building structures such as bridges, towers, masts, trusses, and other related parts.

Also Read: Bondada Engineering makes stellar debut; shares list with 90% premium at 142.5 apiece on BSE SME

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“Bondada Engineering Limited operates in the integrated infrastructure sector, offering engineering, procurement, and construction (EPC) and operations and maintenance (O&M) services. The company has consistently demonstrated growth in both revenue and profit, with a robust order backlog. On technical setup the stock is in buy zone on the major momentum indicators and may continue its bull run to touch the levels of 1,200 in near term,” said Dr. Ravi Singh, SVP – Retail Research, Religare Broking Ltd. 

Also Read: Bondada Engineering IPO: Check GMP, subscription status on day 1, other details to know

The company received multiple orders in February and March (Q4FY24). The Singareni Collieries Company Limited issued Bondada Engineering Ltd a letter of intent in March regarding a contract for the design, engineering, supply, construction, erection, testing, and commissioning of a ground-based solar power plant with capacity, as well as ten years of plant operations and maintenance (O&M) valued at about 433 crores.

Pace Digitek Infra Private Limited placed an order with the company for 40M Ground Based Towers-200, valued at around 24 crores.

The company was awarded a work order by NLC India Ltd in February for the Balance of System (BOS) work related to the 81 crore SOMW Solar Power Project. In a similar vein, Sundrops Energia Private Limited placed two orders for about 4 crore and one order worth 20 crore with the firm.

On Wednesday’s session, Bondada Engineering stock price closed 3.69% higher, at 1,142.40 apiece on BSE. As per trendlyne data, Bondada Engineering shares rose 25.32% outperformed its sector by 25.84% in the past week.

Also Read: Multibagger IPO: SME stock Bondada Engineering doubles allottees’ money within one week of listing

Bondada Engineering Limited IPO

Bondada Engineering IPO subscription commenced from Friday, August 18, and closed on Tuesday, August 22. The IPO’s price band was fixed at 75 apiece of face value of 10 each. A minimum of 1600 shares, as well as multiples of those shares, were up for bid.

Bondada IPO comprised of fresh issue of 56,96,000 equity shares aggregating to 42.72 crore. There’s no offer for sale (OFS) component. The company planned to use the gross proceeds from the offering for general corporate purposes and to fund its long-term working capital requirements, as stated in its Red Herring Prospectus (RHP).

The promoters of the business are Raghavendra Rao Bondada, Neelima Bondada, and Satyanarayana Baratam.

Also Read: Multibagger IPO: SME stock Bondada Engineering turns 1.2 lakh to 4.2 lakh in two months

On the last day, Bondada Engineering IPO subscription status was 112.28 times. The issue received an overwhelming response from retail investors, whose portion set was subscribed to 100.05 times, and non-institutional buyers, whose subscriptions were fetched 115.46 times, according to data on chittorgarh.com.

Bondada Engineering shares debuted on BSE SME with robust premium of 90% at 142.50 apiece as against the issue price of 75 apiece. On the listing date, Bondada Engineering share price closed at 149.62 per share on the BSE SME, a 99.49% premium.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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Published: 12 Apr 2024, 08:30 AM IST