5:1 Stock Split & Rs 5,342 Crore Order Book: Solar Company Approved Fund Raise of Rs 185 Crore and Allotment of 31,25,448 Equity Shares
The stock gave multibagger returns of 774.2 per cent from its 52-week low of Rs 74.01 per share.
On Monday, shares of Bondada Engineering Ltd gained 8.74 per cent to Rs 647 per share from its previous closing of Rs 594.95. The stock’s 52-week high is Rs 753.98 per share and its 52-week low of Rs 74.01 per share. The shares of the company saw a spurt in volume by more than 2.30 times on BSE.
Bondada Engineering Limited's board of directors has approved a proposal to raise up to Rs 185 crore through the issuance of equity shares or other eligible securities. This includes the potential issuance of debentures, non-convertible debt instruments, warrants, convertible debentures, or other equity-based instruments. The fundraising may be done through one or more public or private offerings, including preferential issues, qualified institutional placements, or other methods. The company plans to issue up to 31,25,448 equity shares for Rs 591.90 per share, subject to shareholder and regulatory approvals.
The proposed equity shares will have a face value of Rs 2 each and will be issued through a preferential issue under SEBI ICDR Regulations. The total issue size is expected to be Rs 184.99 crore. The issue price of Rs 591.90 per share has been determined based on a valuation report from a registered valuer and is not lower than the floor price calculated under SEBI ICDR Regulations. The company will receive cash consideration for the equity shares.
Earlier, the company secured a substantial Rs 1,08,90,02,500 contract from the Bihar Renewable Energy Development Agency to implement the Mukhyamantri Gramin Solar Street Light Yojana in Bihar. The project entails designing, supplying, installing, testing, and commissioning smart solar street lighting systems on existing electric poles, along with a five-year maintenance service and remote monitoring. Additionally, the company has successfully commissioned its inaugural 2.80 MW DC Independent Power Producer (IPP) Solar Project in Hyderabad, with power generation underway and BHEL as the designated purchaser. A Board meeting is scheduled on December 7, 2024, to discuss a potential fund-raising initiative through equity shares or other securities, subject to regulatory approvals and shareholder consent.
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Furthermore, the shares of the company ex-traded stock split in the ratio 5:1 on September 02, 2024, i.e., the existing 1 equity share of the company having a face value of Rs 10 each fully paid-up shall be sub-divided/split into 5 equity shares having a face value of Rs 2 each fully paid-up.
Incorporated in 2012, Bondada Engineering Limited provides engineering, procurement, and construction (EPC) services and operations and maintenance (O&M) services to companies operating in the telecom and solar energy industry. The company has a market cap of over Rs 6,800 crore and the order book as of October 2024, stands at Rs 5,342 crore. The stock gave multibagger returns of 774.2 per cent from its 52-week low of Rs 74.01 per share. The company's shares have an ROE of 37 per cent and an ROCE of 35 per cent. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.