Bondada Engineering
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Aug 2023 – 22 Aug 2023
- Listing date
- 30 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹42.72 Cr
- Market cap at offer price
- ₹162 Cr
- Promoter holding
- 86.00% → 63.33% pre-issue → post-issue
- ISIN
- INE0Q8P01011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Vivro Financial Services Pvt.Ltd.
- Registered office
- 1-1-27/37, Ashok Manoj Nagar Kapra, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,88,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.43 | — |
| P/E (×) | 6.56 | — |
| Market cap | — | ₹162 Cr |
Key performance indicators
- Return on net worth
- 22.77%
- ROCE
- 35.63%
- Debt / equity
- 1.07
- PAT margin
- 4.92%
- NAV per share
- ₹49.27
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Bondada Engineering
Bondada Engineering Limited (formerly Bondada Engineering Private Limited) was incorporated on March 29, 2012 in Hyderabad, Telangana and was converted into a public limited company pursuant to a certificate dated May 31, 2023. It is an ISO 9001:2015 certified integrated infrastructure company serving telecom and solar energy customers pan-India, run by promoters Raghavendra Rao Bondada, Neelima Bondada and Satyanarayana Baratam (together 86.00% pre-issue). It earns revenue from five streams (Fiscal 2023, consolidated): EPC services (63.98% of revenue from operations - telecom tower EPC, telecom OFC EPC and solar EPC), O&M services (13.81%), telecom tower manufacturing (11.54%), AAC blocks and other construction products sold through subsidiary SmartBrix Infra Technologies Private Limited under the 'SmartBrix' brand (7.26%), and uPVC doors and windows sold through subsidiary Bondada Abodes Private Limited under the 'SmartWindoor' brand (3.42%). Till date it has installed over 11,600 telecom towers and poles, laid over 3,432.74 RKM of optical fiber network, and commissioned solar plants with cumulative capacity of over 198 MW; its gross Order Book stood at ₹ 1,51,996.55 lakhs (including GST) as on March 31, 2023, anchored by a recently awarded ₹ 1,15,645.33 lakhs Government of India enterprise work order under the USOF-funded 4G Saturation Project. In Fiscal 2023 the company reported revenue from operations of ₹ 37,058.85 lakhs and profit after tax of ₹ 1,825.19 lakhs, having grown revenue at a 47.68% CAGR from ₹ 751.10 lakhs in Fiscal 2013. A third subsidiary, Bondada E&E Private Limited (LED lights), was incorporated in June 2023.
Company Analysis
from DRHPBondada Engineering Limited is an ISO 9001:2015 certified integrated infrastructure company that provides engineering, procurement and construction (EPC) and operations & maintenance (O&M) services to telecom and solar energy customers across India, and also manufactures telecom towers, AAC building blocks and uPVC doors and windows.
Bondada Engineering Limited (formerly Bondada Engineering Private Limited) was incorporated on March 29, 2012 in Hyderabad, Telangana and was converted into a public limited company pursuant to a certificate dated May 31, 2023. It is an ISO 9001:2015 certified integrated infrastructure company serving telecom and solar energy customers pan-India, run by promoters Raghavendra Rao Bondada, Neelima Bondada and Satyanarayana Baratam (together 86.00% pre-issue). It earns revenue from five streams (Fiscal 2023, consolidated): EPC services (63.98% of revenue from operations - telecom tower EPC, telecom OFC EPC and solar EPC), O&M services (13.81%), telecom tower manufacturing (11.54%), AAC blocks and other construction products sold through subsidiary SmartBrix Infra Technologies Private Limited under the 'SmartBrix' brand (7.26%), and uPVC doors and windows sold through subsidiary Bondada Abodes Private Limited under the 'SmartWindoor' brand (3.42%). Till date it has installed over 11,600 telecom towers and poles, laid over 3,432.74 RKM of optical fiber network, and commissioned solar plants with cumulative capacity of over 198 MW; its gross Order Book stood at ₹ 1,51,996.55 lakhs (including GST) as on March 31, 2023, anchored by a recently awarded ₹ 1,15,645.33 lakhs Government of India enterprise work order under the USOF-funded 4G Saturation Project. In Fiscal 2023 the company reported revenue from operations of ₹ 37,058.85 lakhs and profit after tax of ₹ 1,825.19 lakhs, having grown revenue at a 47.68% CAGR from ₹ 751.10 lakhs in Fiscal 2013. A third subsidiary, Bondada E&E Private Limited (LED lights), was incorporated in June 2023.
Objects of the Issue
- To meet long-term working capital requirements ₹ 3,500.00 lakhs p.68
- General Corporate Purposes p.69
Issue Structure
- Total Issue
- [●] Equity Shares aggregating upto ₹ 4,500.00 Lakhs
- Fresh Issue
- [●] Equity Shares aggregating upto ₹ 4,500.00 Lakhs (the entire issue constitutes a fresh issue)
- Offer for Sale
- Nil
- Price Band
- Not applicable – 100% Fixed Price Issue; Issue Price of ₹ [●] per Equity Share (including share premium of ₹ [●]) not yet disclosed
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue primarily from fixed-price EPC contracts (engineering, procurement and construction) for telecom towers, optical fiber cable networks and solar power plants; from recurring O&M service contracts for telecom towers/sites, OFC routes and solar plants; and from manufacturing and product sales - telecom towers fabricated at its ~12 thousand MTPA Telangana plant, AAC blocks, jointing mortar and ready plaster sold under the 'SmartBrix'/'SmartFix'/'SmartPlast' brands via subsidiary SITPL, and uPVC doors and windows sold under the 'SmartWindoor' brand via subsidiary BAPL. In Fiscal 2023 these contributed 63.98%, 13.81%, 11.54%, 7.26% and 3.42% of revenue from operations, respectively.
Business Segments
SWOT Analysis
- • Strong project management and execution capability with 11,600+ telecom sites delivered(p.104)
- • Long-term client relationships providing revenue visibility (>90% of FY23 revenue from clients of 3+ years)(p.104)
- • Diversified business mix across telecom EPC/O&M, solar EPC/O&M, OFC and manufacturing reduces single-stream dependence(p.104)
- • Experienced management team driving high growth (revenue CAGR 47.68% since Fiscal 2013)(p.105)
- • Large order book of ₹1,51,996.55 lakhs (incl. GST) as on March 31, 2023(p.24)
- • Award-winning track record and ISO-certified integrated infrastructure company(p.101)
- • Major Government of India enterprise work order under 4G Saturation Project worth ₹1,15,645.33 lakhs(p.101)
- • Heavy customer concentration — top 5 customers = 92.49% of FY23 revenue; largest customer = 54.09%(p.22)
- • High working capital intensity and rising borrowings; negative operating cash flow in FY23(p.22)
- • Negative cash flow from operating activities of ₹(3,238.69) lakhs in fiscal 2023(p.31)
- • Restrictive covenants in loan agreements may constrain business flexibility(p.25)
- • Lengthening debtor cycle (126 days in FY23 vs 86 days in FY22)(p.25)
- • Dependence on leased premises including registered office leased from a Promoter(p.29)
- • Trademarks being assigned to Promoter Raghavendra Rao Bondada rather than retained by Company(p.28)
- • Past instances of non-compliance/discrepancies in secretarial filings with RoC(p.30)
- • Unable to trace consent to establish for factory premises at Keesara Mandal(p.30)
- • Dependence on contract labour availability at project locations(p.32)
- • No long-term employment contracts with key personnel; retention risk(p.28)
- • Contingent liabilities of ₹5,381.03 lakhs as on March 31, 2023 (bank guarantees & corporate guarantees)(p.31)
- • Telecom tower base expected to nearly double to ~1.67 million by FY2030 (~130,000 new towers p.a.)(p.88)
- • Solar capacity addition of ~237 GW between 2022-2030 creating cumulative EPC opportunity of ₹110,000 crore(p.83)
- • O&M spending on telecom towers growing from ~₹3,800 crore (FY24) to ~₹7,500 crore (FY30)(p.89)
- • OFC network expansion from 36 lakh kms to ~79 lakh kms by 2030 driven by 5G fiberisation(p.92)
- • Government renewable targets: 500 GW renewables by 2030 with solar share rising to 39% by 2032(p.106)
- • Strategy to deepen client engagement and expand incremental O&M revenue from existing clients(p.106)
- • Strategy to widen geographical spread — already executed projects in 23+ states(p.106)
- • uPVC doors & windows market expected to grow from ~₹1,500 crore to over ₹5,000 crore per annum by FY2030(p.99)
- • Intense competition from larger, better-resourced EPC and O&M contractors(p.24)
- • Fixed-price EPC contracts expose company to cost estimation errors and cost overruns(p.23)
- • Government tender outcomes uncertain even if L-1; contracts cancellable at customer discretion(p.23)
- • Order Book realization not assured; contracts subject to cancellation/termination/suspension(p.24)
- • Penalty exposure under O&M service level commitments with telecom operators(p.24)
- • Regulatory/compliance risk — environmental, health, safety and labour laws may raise costs or suspend permits(p.26)
- • Tax policy changes (GST, Finance Act 2023) could adversely impact financials(p.36)
- • Inflationary pressures may compress margins if costs cannot be passed on(p.40)
- • Macroeconomic/geopolitical shocks (global instability, Russia-Ukraine oil prices) affect demand and costs(p.37)
- • Natural disasters, epidemics/pandemics and civil unrest could disrupt operations(p.37)
- • No assurance of active/liquid market post-listing; SME platform liquidity risk(p.34)
- • Industry cyclicality — dependence on telecom and solar sectors exposes company to sector-specific downturns(p.22)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Raghavendra Rao Bondada | Promoter; Chairman & Managing Director | 62.83% | — |
| Neelima Bondada | Promoter; Non-Executive Director | 11.23% | — |
| Satyanarayana Baratam | Promoter; Whole-time Director & CFO | 11.95% | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.