Stock of this SME telecom infrastructure company nearly doubles in 5 weeks

Shares of Bondada Engineering were locked in 10-per cent upper circuit after the company received five-year operations and maintenance (O&M) contract worth of Rs 381 crore from BSNL

Shares of Bondada Engineering were locked in the 10-per cent upper circuit at Rs 331.10 on the BSE on Thursday at 11:48 AM, after the company received five-year operations and maintenance (O&M) contract worth of Rs 381 crore from the state-owned company Bharat Sanchar Nigam (BSNL).

Over the past five weeks, the stock price of the telecom infrastructure company has nearly doubled, zooming 99 per cent. The stock, which debuted on the bourses on August 30, 2023, is trading 344 per cent higher against its issue price of Rs 75 per share.

In an exchange filing, Bondada Engineering said after market hours on Wednesday that the company has received an addendum work order from BSNL for providing infrastructure as a Service (IaaSP) for supply and erection of GBT, Infrastructure as a Service Provider (IaaSP) for supply installation of Infrastructure Item, and subsequent O&M for five years, amounting to Rs 381.28 crore.

On Tuesday, October 31, the company had said that it has received work order amounting to Rs 24.27 crore from another state-owned company Bharat Heavy Electricals Limited (BHEL) for setting up 2MW Solar PV projects on build, own, operate, and transfer basis. The time period for the same work order is 25 years, the company said.

Bondada Engineering provides engineering, procurement, and construction (EPC) services, and O&M services to companies operating in the telecom and solar energy industry.

The company provides passive telecom infrastructure services which include cell site construction, erection, operation, and maintenance of telecom towers with civil, electrical, and mechanical works, supply of poles and towers, laying and maintenance of optical fiber cables, supply of power equipment, and other telecom infrastructure related services to major telecom companies and telecom tower operators in India.

The company has installed over 11,600 telecom towers and poles, out of which 7,700 telecom towers and poles were installed in the last three fiscal.

Bondada Engineering is trading under ‘M’ i.e. Small and Medium Enterprises (SME) group. The SME segment has a larger-than-normal lot size – the minimum number of shares you can buy or sell in each transaction. Bondada Engineering has a lot size of 1,600 equity shares.

SME IPOs offer opportunity to the investors for early investment in businesses which are at a small scale. SME listed companies eventually move to the main exchange once they grow.