Curated By: Business Desk
Last Updated: August 31, 2023, 20:59 IST
Bondada Engineering made a stellar stock market debut.
This company has major exposure in the telecom sector and other telecom infrastructure-related services.
Hyderabad-based infrastructure company, Bondada Engineering Limited made a strong market debut on August 30 and the shares continued its rally for the second day on Thursday. Its shares were listed with a premium of 90% at Rs 142.50 apiece on the BSE SME, as against the issue price of Rs 75 per share.
Shares of Bondada Engineering closed 4.75% higher at Rs 149.62 apiece on BSE on its first day of trading. The stock continued its gaining streak for the second day and closed at Rs 156.15 per share, up 4.36% on BSE on Thursday.
Bondada Engineering is an integrated infrastructure company that offers engineering, procurement, and construction (EPC) services to its clients. This company has major exposure in the telecom sector and other telecom infrastructure-related services.
The pre-opening price was decided at Rs 142.5 apiece and soon the stock surged to Rs 149.62 apiece after opening and it remained at the same price level till its closing on Wednesday’s trade, marking a 99.5% premium compared to the issue price. It was also locked in a 5% upper circuit compared to the pre-opening price.
The company’s initial public offering (IPO) was open on August 18, and the bids were accepted until August 22. The IPO was subscribed 112 times. The face value of its shares is Rs 10 per share. The issue was open for bidding at a lot size of 1600 shares. The total number of shares issued was Rs 42.72 crore and the company issued 56,96,000 fresh shares.
The company will utilise IPO proceeds for its requirements for long-term capital and general corporate purposes. The company had a trading volume of 18.75 lakh shares on its first day. This is largely attributed to the robust demand for IPO investors last week and also includes a healthy financial performance.
Bondada Engineering received an overwhelming response to its IPO. This strongly hints at a remarkable debut in the market.
Bondada Engineering also offers its EPC services in the solar energy industry, which include site surveys, land levelling, and designing and installing solar systems. As per reports, until March 31, 2023, the combined order book of the company stood at around Rs 338 crore. It has installed more than 11,600 telecom towers and poles and laid 1370.3 km of optical fibre cables.
