Bondada Engineering Share Price Surged by 1423.2%, Know Why?

Tanushree Jaiswal Tanushree Jaiswal 12th April 2024 - 02:16 pm
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Bondada Engineering, standout in integrated infrastructure sector, witnessed extraordinary surge in its share price, soaring by impressive 1423.2% since its debut on BSE SME platform in August 2023. Investors who were part of IPO allocation saw significant gains, potentially earning 18.3 lakhs in just over eight months. This surge in stock price is attributed to multiple factors, including company's incorporation of new subsidiary, Bondada Green Engineering Pvt Ltd, which focuses on metal frames for building structures. This strategic move, along with strong financial performance, propelled investor confidence, leading to remarkable bull run for nearly eight months.

Bondada Engineering Shares Surged up

On Wednesday's trading session, Bondada Engineering share price surged by nearly 5%, hitting 52-week high after announcement of its subsidiary's incorporation. Bondada Engineering Limited operates in engineering, procurement, & construction (EPC) as well as operations & maintenance (O&M) services segment, catering to various infrastructure projects. Company's consistent revenue & profit growth, coupled with robust order backlog, further bolstered investor sentiment.

Why Bondada Engineering Surged up?

Bondada Engineering won a work order from NLC India Ltd in February for the Balance of System (BOS) work on an ₹81 crore solar power project. Sundrops Energia Private Limited placed orders of ₹4 crores and ₹20 crores with the business.

What does Technical Indicators say?

Dr. Ravi Singh, SVP - Retail Research at Religare Broking Ltd, highlighted technical indicators signalling stock's buy zone, projecting potential upward trajectory to reach levels around ₹1,200 in near term. Company secured several significant orders in February & March (Q4FY24), including substantial contract from Singareni Collieries Company Limited for solar power plant project valued at approximately ₹433 crores. Other notable orders from Pace Digitek Infra Private Limited & NLC Indi Ltd further underscored Bondada Engineering's growing presence in infrastructure domain.

All about Bondada Engineering’s Surged up & IPo

Bondada Engineering IPO witnessed overwhelming demand from investors, with subscriptions oversubscribed by 112.28 times. Retail investors & non-institutional buyers showed strong interest, subscribing 100.05 times & 115.46 times, respectively. IPO, priced at ₹75 per share, comprised fresh issue of 56,96,000 equity shares, with proceeds intended for general corporate purposes & long-term working capital requirements.

To Summarize

Following its listing on BSE SME platform, Bondada Engineering shares debuted with premium of 90%, closing at ₹149.62 per share on listing date. Stock continued its upward trajectory, closing at ₹1,142.40 per share on Wednesday's trading session, reflecting premium of 99.49% over issue price. This exceptional performance underscores investor confidence in Bondada Engineering's growth prospects & solidifies its position as multibagger stock in infrastructure sector.

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