Bondada Engineering IPO Day 1
Hyderabad-based Bondada Engineering is set to make its market debut with an Initial Public Offering (IPO), offering investors an opportunity to tap into the telecom and solar energy infrastructure sector. Here’s a comprehensive update on the subscription status, price expectations, and market sentiment as of Day 1.
Bondada Engineering IPO Subscription and Price Details:
The eagerly anticipated Bondada Engineering IPO officially opened for subscription on Friday, August 18, and is scheduled to conclude on Tuesday, August 22. This IPO presents potential investors with a chance to acquire equity shares at a price band of ₹75 per share, with a nominal value of ₹10 each.
Investors are invited to place bids for a minimum of 1,600 equity shares, thereafter proceeding in multiples of 1,600 equity shares. The issue price of the Bondada Engineering IPO is valuated at 7.5 times the face value of the equity share.
The IPO encompasses a fresh issue of 56,96,000 equity shares, aggregating to a total value of ₹42.72 crore. Notably, the IPO does not feature an Offer for Sale (OFS) component. As detailed in the company’s Red Herring Prospectus (RHP), the funds raised from this issuance will primarily cater to the company’s long-term working capital requirements and serve general corporate objectives.
The core team behind Bondada Engineering comprises notable individuals, namely Raghavendra Rao Bondada, Neelima Bondada, and Satyanarayana Baratam.
Leading the Path:
Vivro Financial Services Private Ltd is serving as the lead manager for the Bondada Engineering IPO, while KFin Technologies Ltd has taken on the role of registrar.
Bondada Engineering IPO Subscription Status:
On the first day of the IPO subscription, Bondada Engineering IPO garnered a subscription status of 70%. Notably, retail investors displayed a robust interest, subscribing to a portion that was 1.35 times oversubscribed. Meanwhile, non-institutional buyers exhibited a subscription rate of 4%, as per data from chittorgarh.com.
As of 18:24 IST, the company had received bids for 37,65,000 shares, a noteworthy response considering the offering of 5,696,000 shares.
Bondada Engineering IPO GMP:
The grey market sentiment for Bondada Engineering IPO has been favorable. The grey market premium, also known as GMP, stood at +20 on Friday, mirroring the previous two trading sessions. This development indicates that the shares were trading at a premium of ₹20 in the grey market, based on insights from topsharebrokers.com.
Considering the upper threshold of the IPO price band and the ongoing premium in the grey market, industry experts are anticipating a potential listing price of ₹95 per share. This projection represents a substantial 26.67% increase over the IPO price of ₹75.
On Tuesday, the Bondada Engineering IPO GMP experienced a dip, settling at ₹10.
In the financial world, the ‘grey market premium’ serves as an indicator of investor eagerness to pay beyond the issue price for shares.
With the Bondada Engineering IPO off to a promising start, market enthusiasts are keenly watching the developments, eager to witness the impact on the company’s market debut.
About Bondada Engineering:
Bondada Engineering Ltd, headquartered in Hyderabad, is an infrastructure company that caters to clients throughout India in the fields of telecommunications and solar energy. The company provides a comprehensive range of services including engineering, procurement, construction (EPC), as well as operations and maintenance (O&M).
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