“IPO has positively impacted us”
Why did your SME decide to go public? What were the key factors or strategic considerations that influenced this decision?
The Initial Public Offering (IPO) market has witnessed remarkable growth in the SME market in the recent past. In general, most of the SMEs face funding gap during their business growth for managing working capital requirements/capital requirements, which is the case even with us. More than that, our major focus was access to the capital market, and we wanted to understand our company’s positioning in the capital market. At the same time, we understand the compliance norms for SME listings is simpler compared to main board listings. Also, for our size of issue, we thought, SME platform is more appropriate.
Can you share insights into the experience of the IPO listing process for your SME? What challenges did you face, and how did you navigate them?
Even though we are a fully compliant company in all the aspects such as regulatory or financial compliance, filing the documents with regulatory authorities etc., however every step heading towards IPO was a challenge. Heading towards something for the first time would always be challenging for any newcomer. Determining the right valuation was the biggest challenge and there was a delicate balance between attracting investors and ensuring fair pricing.
Since your SME's IPO listing, how has the stock performed in the market? Have there been any notable trends or factors impacting its performance?
The performance of our stock is tremendous. As you are aware, the issue price was Rs 75 per share and today within a period of under 6-months the price has hit an all time high at Rs 638.85 which is more than 8.50 times of the invested amount. This remarkable performance of our stock can be mainly attributed to the company’s performance followed by its strong order book.
How has the IPO positively impacted your SME's visibility, credibility, and access to capital?
Yes, the IPO has positively impacted us. It increased our presence in the capital market and enhanced our “Bondada Group” brand visibility. It has also enhanced our reputation and brand image with our customers. And the great thing among all is the market cap of the Company stands at around Rs 1400 crore which is a great achievement so far to the company. Furthermore, we gained the confidence of multitudinous investors and we are indebted to each and every investor who has shown faith in us and for their overwhelming response to us.
