The Bondada Engineering IPO Overview
The Bondada Engineering Initial Public Offering (IPO) has entered its second day of subscription, commencing on Friday, August 18, and set to conclude on Tuesday, August 22. The IPO is offering equity shares with a face value of ₹10 each at a price band of ₹75 per share. The minimum bidding quantity stands at 1,600 equity shares, with bids to be placed in multiples of 1,600 equity shares. Notably, the IPO issue price is established at 7.5 times the face value of the equity share.
Diving into the specifics, the Bondada IPO comprises a fresh issue of 56,96,000 equity shares, accumulating a total value of ₹42.72 crore. Unlike some IPOs, there is no offer for sale (OFS) component associated with this offering. As outlined in the company’s Red Herring Prospectus (RHP), the generated proceeds from the issue will be allocated towards fulfilling long-term working capital necessities and catering to general corporate objectives.
Meet the driving forces behind Bondada Engineering: Raghavendra Rao Bondada, Neelima Bondada, and Satyanarayana Baratam, who are the distinguished promoters of the company.
Stalwarts Behind the Scenes
The Bondada Engineering IPO is adeptly managed by Vivro Financial Services Private Ltd, and the registrar entrusted with handling the IPO proceedings is KFin Technologies Ltd.
Understanding Bondada Engineering Ltd: A Glance into its Endeavors
Hailing from Hyderabad, Bondada Engineering Ltd is a prominent player in the infrastructure sector. It extends its services throughout India, particularly catering to the telecommunications and solar energy industries. The company’s forte lies in providing comprehensive engineering, procurement, and construction (EPC) services, coupled with operations and maintenance (O&M) services.
Bondada Engineering IPO Subscription Status: Day 2 Figures
As of the end of day 2, the subscription status of the Bondada Engineering IPO is impressive, having been subscribed a remarkable 17.54 times. This noteworthy response is particularly evident among retail investors, with their segment’s subscription ratio standing at an impressive 24.54 times. Additionally, non-institutional buyers have exhibited substantial interest, subscribing at a rate of 6.49 times. The data, sourced from chittorgarh.com, indicates bids received for 9,48,75,200 shares, surpassing the 5,696,000 shares offered.
Earlier, on day 1, the IPO subscription status marked a significant 70%.
Also Read: Bondada Engineering IPO Details | GMP, Date, Price, Review
Bondada Engineering IPO GMP:
In the grey market, the Grey Market Premium (GMP) for Bondada Engineering IPO was observed to be +26 on Monday, slightly surpassing levels from previous trading sessions. This implies that the shares were being traded at a premium of ₹26 in the grey market on the aforementioned day. Notably, factoring in the higher end of the IPO price band and the prevailing grey market premium, an estimated listing price of ₹101 per share is projected. This estimation reflects a remarkable 34.67% increase compared to the IPO price of ₹75.
Furthermore, the GMP for the Bondada Engineering IPO on Sunday was documented at ₹26.
Decoding the Grey Market Premium
The term ‘Grey Market Premium’ (GMP) is indicative of investors’ willingness to pay a premium beyond the issued price, serving as an indicator of market sentiment and demand for the IPO shares.
About Bondada Engineering:
Bondada Engineering, founded on March 29, 2012, specializes in delivering a comprehensive range of services encompassing engineering, procurement, construction, as well as operations and maintenance. The company extends these services to clients within India, focusing on the telecom and solar energy sectors.
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