Bondada Engineering Limited IPO Message Board (Page 12)

The Issue is at a Pre-IPO PE of 9x when computed with 162 Cr of Mkt Cap and the Profit of 17.85 Cr in FY 23.
It is still attractive.
I remember one other similar business company "Salasar Techno". It got oversubscribed by 200x times in 2018 !!

VAIBHAV SIR
THANKS YOU VERY MUCH FOR EXPLAINING MEANING OF ST

SIRJI CAN SOME ONE EXPLAIN WHAT IS ST

@MuStrFc Right 👍

In Retail Quota how much time will be subscribe any tentative figure

Bondada      
Company’s businesss is fabrication and erection of towers, fabrication and erection of solar plants, AAC blocks and uPVC doors and windows. FY 22-23 revenue was Rs 370 cr and it has order book of Rs 1520 cr.
YoY inventory and receivables have jumped by Rs 63 cr while creditors have increased by Rs 22 cr.
Working capital intensive business as PBT of last 3 years is Rs 50 cr while CFOB4T for the same period is negative Rs 6 cr, mainly due to increase in debtors and short term loans and advances
YoY advances to vendors have jumped from Rs 10 cr to Rs 20 cr
Out of total receivables, Rs 5 cr is more than 6 months. Whether this is a normal retention money withheld by customer or disputed amount is not known.
Company has made investment of Rs 1.5 cr in Feepad Private Limited, classified as non-current investment. What future benefit is expected from this investment is unknown.
In Feb & Mar 23, company made private placement of shares @ Rs 1953/- per share. Post 18:1 bonus this works out to be Rs 102 per share which is higher than IPO price of Rs 75 per share, fellow boarders may double check and verify (page 57 of RHP)
Margin wise EPC segment is showing consistent margins over last 3 years whereas Products and Services segments have seen margins jump from 2.3%to 6.2% and 2.9% to 6.1% in 22-23
Capital employed is highest among EPC segment followed by Products and then Services
Employee cost was Rs 69.46 cr in 20-21 has dropped to Rs 19.37 cr in 22-23. Do not know whether company has outsourced its labor intensive processes or it is something else. During same period, revenue from operations grew from Rs 287 cr to Rs 370 cr
Based on working capital assumptions, company projects revenue from operations of Rs 560 cr in 23-24
Directors have provided unsecured interest free loan of Rs 3.7 cr to company as on 31-Mar-23
Interest rates on cash credit is in the range of 9% to 9.8%
Company had a bad debt write off for Rs 25.36 lacs and donation to political party of Rs 10 lacs in 22-23.

@YBPK  Thanks a lot for your Honest Feedback, please keep posting yours findings.

Thank u for your insight..🙏

- company is diversified EPC player. have presence in telecom towers, telecom OFC as well as solar projects. all three businesses have very good growth prospects. generally EPC players have expertise in 1 segment, but having expertise in 3 segments is big positive.
- Company also does O&M for its own EPC projects and some other projects as well. this is low lying fruit and builds annuity income
- Huge orderbook of 1520 crore as on March 2023. seems another order of 1156 crore recently awarded. solid order book gives visibility of growth over next 3 years.
- Promoters or company does not have any legal cases ongoing. even tax disputes are minimal. this is rare specially for EPC players where you need muscle power on ground to execute projects
- financials are on bit weaker side. EBIDTA margin of ~6-8% range coupled with ~ 150 days of WC is a concern.
- Valuation of 9 p/e on diluted basis is attractive especially having visibility of solid growth.
- Decent size of Rs. 42 crore issue without QIB quota. Seems LM is not active and bringing IPO after long time. MM track record is also questionable.

Overall, there are grey areas and listing gain will be uncertain. can be very good like 60%+ as well as can be negligible also. however for medium term 1-1.5 year should give at least 50% return.

I will apply to target 1 lot.

p.s. i do not read RHP in detail and scan through few sections. so in case if i am missing any imp. aspects, pls highlight.

86

sold for 80k. IMO more than 60% gain on listing will be difficult, so current grey rates are offering good value.

for long term though, its good to hold.

Bondada 26 rs premium buyer

This IPO is doubtful. because retail 1.35 and Other 0.04 and total- 0.70. Total application 3.75. How can is possible of this. Total subscription -3.75.

Category      Subscription (times)
Other      0.04
Retail      1.35
Total      0.70
Total Application : 6,343 (3.75 times)

Applied for 1 lot but main issue to get allotment, irrespective of listing prospect.

Vishnu Prakash Punglia
Vishnu Prakash Punglia
Dates      24 – 28 August 2023
IPO Price : 94 – 99

Sungarner Energies Limited is offering wide range of power solutions such as Solar Power, UPS, Batteries, and Inverters. The company is also engaged in the trading of solar panel business.

IPO Opening Date      21 August 2023
IPO Closing Date      23 August 2023
Issue Type      Fixed Price Issue IPO
Worth ₹5.31 Crore
IPO Price      ₹83
Market Lot      1600 Share

Things to consider :
Pros :
No OFS
LM & MM Track record
110% CAGR for 4 years as per management estimates
CY P/E Post Issue : 20.24, with 4.1 EPS as compared to High P/E peers
FY 24 P/E : 16.43, with 5.05 EPS

Cons :
No QIB (Probably due to small size)
Small size can be manipulated
Missing Financials of group entities for 1 year and 2 year respectively (No concrete reason given)

Suggestions / corrections to the above are most welcome.

Fundamentals looks good, need to see how will be the listing but even if listing is average I am willing to hold this for long term.
I applied 3 HNI applications of 4 lots each, others can join if interested.

Anyone else joining for 4 lots HNI?

Don't worry...there will be many many joining you on 4 lot

Sungarner energy lmtd
21-23

Jeena Sikho LM

https://www.sungarner.com/img/Final%20RHP%20_SunGarner%20Energies%20Limited.pdf

@lokes  I am new to SME IPO. Could you please share your view on "Bondada Engineering SME"? Is it worth to consider this IPO for retail application?

Also, please provide your view on "Pyramid Technoplast IPO". Thank you.

@Biswojit yes you can apply in this ipo in retail application, here their business type and sector both are great and they are showing good and consistent growth in their revenue and profits which will still keep growing at good pace in my view, they have great order book and their margins also increasing due to solar sector O&M services....
Some concerns are big size issue without qib, bad market maker image due to some recent ipos, (Lead Manager coming after long time and handled few issues and looks average) and increase in borrowings which is usually there in such kind of business due to working capital needs...
Overall i don't feel it will list negative so no need to fear here in my view and it should do in mid to long term holding also...
still if possible , we can sell in grey and then apply in retail else apply open....

@lokes Thank you so much for your response.

Dear CG friends to update on Shritectex.
Today 5% UC and from monday 20% circuit revised....
So can say counter was in incubator and now comming out of that on monday will start new journey of north with few haults..........looks good for MED to Long....

Is there any grey market operators in Jodhpur??..if yes how can I contact him.

KAB SE KHAALI PADE D-MAAT KE LIYE
BUS , EK LAAT KE LIYE
KAHI FUND BLOCK KAR JAATE HAI
CHALO EK APPLICATION LAGATE HAI..

Thanks , it's my SOP for ipo applying

@Vaibhavvd 

LiveMint _ Dhanya Nagasundaram _ 18th Aug 2023.
Bondada GMP +20/-

I have a doubt, in retail so far it is subscribed 1.01 time and in application wise its is showing 2.79 time. how it is possible.

In main board ipos application wise subscription will always be less than total number of times subscribed

Must be some technical error.

Must apply.
ST 30k Ahmedabad.

Dar lage to bech ke apply karo

@Mj Jitendra Ask your broker if he has gray market connections

Bro it's zerodha , I don't think so if he offers such thing.

Guys my Frist time in sme ipo
I want to apply 7 retail application in bondada
Negative to nai jayega na

Prefer only mainline IPOs unless have good profits to offset the losses from SMEs

Two big negatives - Huge size and no QIB.
No matter how good the company, there will be a huge selling pressure on listing day.

Premiums are good. Better to sell and apply.