Bondada Engineering has fixed the record date for the split of equity shares. The firm has announced Monday, September 2, 2024, as the record date for the entitlement of shareholders to this corporate action.
Once the subdivision is approved, each equity share of ₹10 face value will be subdivided or split into five equity shares of ₹2. The purpose of this move is to reduce the unit price and make the shares more accessible to investors, which may eventually increase liquidity.
Read the official notification here
Table of Contents
Company Overview
Bondada Engineering Limited is an engineering and construction company based in Hyderabad, Telangana. It has wide operational footprints in India and is known for its proficiency across multiple engineering domains, primarily in infrastructure development. Focusing on innovation and quality, Bondada has established a strong track record of project deliveries, achieving high benchmarks and earning a reputable image as a reliable partner in the industry.
Financial Performance
Bondada Engineering Limited is a profitable entity with a solid financial performance over the years, supported by its robust order book and efficient project execution. It has consistently grown its revenue while remaining profitable. For FY 23-24, the company generated a revenue of ₹801 crore with a net profit of ₹46 crore.
The latest decision to demerge some of its equity shares aligns with its strategic agenda of creating long-term shareholder value and broadening market participation.
Key Financial Metrics
| Metric | Value |
|---|---|
| Market Capitalization | ₹ 7,959 crore |
| Total Assets | ₹505 crore |
| Debt-to-Equity Ratio | 0.39 |
| P/E Ratio | 178 |
| ROE | 37.2% |
| EPS | ₹20.7 |
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Implications for Shareholders
The subdivision will see existing shareholders receive five times the number of shares they had before, while their total stake in the company, and thus its value subject to market fluctuations, remains unchanged.
For example, if a shareholder has 100 shares of ₹10 face value, after the split, they will have 500 shares with a face value of ₹2 each. This move is expected to attract more investors to the stock by lowering its share price, fueling greater trading volume, and sharper pricing in the market.
Shareholding Pattern
| Shareholder Category | Holding (%) |
|---|---|
| Promoters | 63.33% |
| Foreign Institutional Investors (FII) | 0 |
| Domestic Institutional Investors (DII) | 0 |
| Public | 36.08% |
Conclusion
Bondada Engineering Limited announces the record date for the subdivision of its equity shares. This move makes the company’s shares more accessible to a broader range of investors, increasing market participation. The share split is anticipated to help Bondada Engineering’s market and shareholder value grow, along with the rest of its activities, as it continues to expand to serve a larger customer base.
VISIT THE OFFICIAL WEBSITE TO LEARN MORE
Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.