Bondada Engineering Limited

Bondada Engineering Limited’s SME IPO subscribed 106.65 times on the Final Day 

Hyderabad based infrastructure player Bondada Engineering Limited, engaged in the business of providing engineering, procurement and construction (“EPC”) services and operations and maintenance (“O&M”) services to its pan India customers operating in telecom and solar energy industry was oversubscribed by 106.65 times on the last day of subscription. 

 

The issue received bids of 60,74,99,200 shares against the offered 56,96,000 equity shares. The segment for Qualified Institutional Buyers recorded a subscription of 2.45 crore shares, with Foreign Institutional Investors (FIIs) accounting for 40.62 lakh shares and Domestic Financial Institutions (Banks/Financial Institutions (FIs)/Insurance Companies) contributing 1.78 lakh shares. In the Non-Institutional Investors category, which garnered a total subscription of 31.24 crore shares, Corporates subscribed to 1.83 crore shares, Individuals subscribed to 25.93 crore shares, and the Retail Category exhibited a subscription of 27.05 crore shares., at a fixed price issue at ₹75, according to the data available on the stock exchanges.   

Vivro Financial Services Private Limited is the sole book running lead manager and KFin Technologies Limited is the Registrar to the Offer. The Equity Shares are proposed to be listed on the SME Platform of BSE Limited (BSE SME). 

Company Information 

Bondada Engineering is a leading provider of core design, engineering, and O&M services for infrastructure projects. Their expertise, backed by a team of 550+ professionals, is evident from their successful track record. They received accolades, such as the "Telecom Infrastructure Services Provider" by the Economic Times in 2021 and "Company of the Year" by the Global India Business Forum in 2023. 

The Company offers a wide range of passive telecom infrastructure services, including turnkey solutions for cell site construction, telecom tower operation and maintenance, optical fiber cable laying, power equipment supply, and more. With over 11,600 telecom towers and poles installed, they have shown significant progress, completing 7,700 installations in the last three fiscal years. 

Bondada Engineering has a state-of-the-art tower manufacturing facility in Medchal District, Telangana, with an installed capacity of ~12 thousand MTPA for tower fabrication. During Fiscal 2023, they manufactured 34,945 telecom towers (GBT, Poles, RTT, and RTP) and provided EPC services for over 1,100 towers across India. Furthermore, they have laid 1,370.38 route kilometers (“RKM”) of OFC network for major Telecom operators. 

The Company clocked a profit of Rs 18.25 crore in the financial year FY23 against Rs 10.13 crore in the previous year. Revenue during the year FY23 increased significantly to Rs 370.59 crore from Rs 334.11 crore in the previous year, an increase of 9.84%, primarily due to increase in revenue from EPC services, due to increased projects executed for solar sector. 

The table below shows subscription data for all the categories of investors: