5:1 Stock Split & Rs 5,342 Crore Order Book: Solar Company Signs MoU Worth Rs 450 Crore with Hon'ble Minister of Education, Welfare of Plain Tribe & Backward Classes
The stock gave multibagger returns of 371 per cent from its 52-week low of Rs 124.10 per share.
Dr. Bondada Raghavendra Rao, Chairman and Managing Director of Bondada Engineering Limited, signed a Memorandum of Understanding (MoU) with Assam's Education Minister Ranoj Pegu at the Advantage Assam 2.0 Summit in Hyderabad. This MoU signifies the Bondada group's intent to invest in a 100 MW hybrid renewable energy plant in Assam under the UNNATI Scheme. The project will combine solar and wind power and is estimated to cost Rs 450 crore.
Earlier, the company received a significant work order from KPI Green Energy Limited, a domestic entity. This contract, valued at Rs 88,49,76,223 (including GST), mandates BONDADA to provide crucial BOS (Balance of System) items and associated services. These services are integral to the execution of Engineering, Procurement, and Construction (EPC) works undertaken by KPI Green Energy at three distinct locations: Vagra, Amod, and Rajkot. The scope of this contract necessitates BONDADA to diligently fulfil its obligations within a stipulated timeframe of 90 days from the date of receiving the purchase order. This substantial order underscores the growing prominence of BONDADA in the renewable energy sector and signifies a significant step forward in their business trajectory.
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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 5,600 crore and the order book as of October 2024, stands at Rs 5,342 crore. The stock gave multibagger returns of 371 per cent from its 52-week low of Rs 124.10 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.