Engineering and procurement firm Bondada Engineering debuted with a bang on the BSE SME platform, rising nearly 100 percent on August 30 and joining a long list of SMEs that have delivered hefty returns to its investors.
At the opening, the stock traded at Rs 142.50, up 90 percent over the issue price of Rs 75 per share. The stock saw more demand and was locked at the 5 percent upper circuit thereafter, resulting in a total gain of 99.49 percent.
The Hyderabad-based integrated infrastructure firm is engaged in the business of providing engineering, procurement and construction (EPC) operations and maintenance (O&M) services to customers operating in the telecom and solar energy industry.
It raised Rs 43 crore from the market through its public issue, which was subscribed 112.28 times and received positive response from all quarters of investors, thanks to its strong financials. The quota reserved for retail investors was subscribed 100.05 times, and that reserved for the rest of the categories was booked 115.46 times.
Between fiscal 2021 and fiscal 2023, Bondada’s revenue grew from Rs 287.09 crore to Rs 370.58 crore, representing a CAGR of 13.61 percent, while its EBITDA grew from Rs 17.46 crore to Rs 31.17 crore at a CAGR of 33.59 percent. Its net profit surged 40.81 percent, from Rs 9.20 crore to Rs 18.25 crore in this period.
The company says it has worked on more than 11,600 telecom sites in seven states in India. It has completed contracts worth more than Rs 515.10 crore in the last three fiscals in telecom tower EPC and solar EPC segment.
“For the fiscal 2023, more than 90 percent of our total consolidated revenue from operations is derived from clients who have been doing business with us for more than 3 years, which demonstrates the strength of our relationships and our ability to consistently deliver value,” the company said in its IPO draft.
“Our long-term contracts for telecom and solar services have been a growth driver for us in the past and continue to provide us with visibility into future revenues.”
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