Chamunda Electricals IPO Sees Strong Demand, Subscribed 16x on Day 1

Chamunda Electricals’ ₹14.6 crore IPO witnessed strong investor demand, being oversubscribed nearly 16 times on the first day. The company plans to list on the NSE SME platform on February 11, with funds allocated for capital expenditure, working capital, and debt repayment. Additionally, the stock market will see five new SME IPOs opening for subscription this week, along with the upcoming listings of Dr Agarwal’s Health Care and Malpani Pipes.

CONTENTS:

• Chamunda Electricals IPO Sees Strong Demand, Subscribed 16x on First Day
• Chamunda Electricals IPO: GMP, Allotment Status, and Listing Details
• Upcoming SME IPOs and Listings This Week: Key Details to Watch

Chamunda Electricals IPO Sees Strong Demand, Subscribed 16x on Day 1

Chamunda Electricals IPO Sees Strong Demand, Subscribed 16x on First Day

Chamunda Electricals IPO Sees Strong Demand The ₹14.6-crore initial public offering (IPO) of Chamunda Electricals Ltd opened to a strong response on February 4, with the issue being fully subscribed within hours. By the end of the first day, the IPO had received bids for 3.06 crore shares against the 19.32 lakh shares available, resulting in an overall subscription of 15.86 times.

Key Subscription Details:

• Retail Investors: Subscribed 24.99 times (2.41 crore shares bid vs. 9.66 lakh shares available).
• Non-Institutional Investors (NIIs): Booked 7.7 times (31.89 lakh shares bid vs. 4.14 lakh shares available).
• Qualified Institutional Buyers (QIBs): Applied for 33.24 lakh shares against an allocation of 5.52 lakh shares.

IPO Details:

• Issue Size: 29.19 lakh fresh shares, raising ₹14.6 crore.
• Price Band: ₹47-₹50 per share.
• Lot Size: Minimum 3,000 shares (₹1,50,000 investment required for retail investors).
• Subscription Period: February 4-6.
• Listing Date: Proposed for February 11 on the NSE SME platform.

Anchor Investor Participation:

Ahead of the IPO, Chamunda Electricals raised ₹4.11 crore from anchor investors on February 3. The company allotted 8.22 lakh shares at ₹50 per share to three investors:

• Vikasa India EIF I Fund – Incube Global Opportunities (48.91%)
• Paradise Moon Investment Fund I (24.45%)
• SMC India Opportunities Fund (26.64%)

Use of IPO Proceeds:

Chamunda Electricals plans to allocate funds towards:

• Capital expenditure (purchase of testing kits and equipment).
• Working capital needs.
• Loan repayments.
• General corporate expenses.

Financial Performance:

• April-December 2024 Revenue: ₹18.29 crore
• Profit After Tax (PAT): ₹2.81 crore
• FY24 Revenue: ₹19.94 crore (up from ₹13.94 crore in FY23)
• FY24 Net Profit: ₹2.43 crore (vs. ₹31.21 lakh in FY23)

Chamunda Electricals IPO Sees Strong Demand Chamunda Electricals specializes in operation, maintenance, testing, and commissioning of electrical substations and solar power projects. The company has developed a 1.5 MW solar park in Gujarat and signed a 25-year Power Purchase Agreement (PPA) with Uttar Gujarat Vij Company Ltd (UGVCL).

With strong demand from investors, the IPO is expected to be closely watched as it moves toward listing.

Chamunda Electricals IPO: GMP, Allotment Status, and Listing Details

Chamunda Electricals IPO Sees Strong Demand Chamunda Electricals Ltd has launched its ₹14.6 crore IPO, consisting entirely of a fresh issue of 29.19 lakh equity shares. The bidding window opened on February 4 and will remain open until February 6. Shares are priced between ₹47-₹50 per unit, with a minimum lot size of 3,000 shares.

Company Overview

Headquartered in Palanpur, Chamunda Electricals specializes in:

• Operation and maintenance of substations up to 66 KV.
• Testing and commissioning for substations up to 220 KV.
• Renewable energy projects, including a 1.5 MW solar power generation park.

Founded in June 2013, the company also provides services such as erection of EHV class equipment, control cable works, and grounding systems for 220 KV substations.

IPO Subscription and Market Response

As of 2:30 PM on the first day of bidding, the IPO was subscribed 8.86 times, receiving 1.71 crore bids for the 19.32 lakh shares available. The breakdown of investor interest is as follows:

• Retail Investors: Subscribed 15.56 times.
• Non-Institutional Investors (NIIs): Booked 4.6 times.
• Qualified Institutional Buyers (QIBs): Bids reached 56% of their allotted quota.

The IPO’s grey market premium (GMP) stood at ₹11 per share, indicating a potential 22% listing gain at the upper price band.

Anchor Investors and IPO Utilization

Before the public issue, Chamunda Electricals raised ₹4.11 crore from anchor investors, allocating 8.22 lakh shares to:

• Vikasa India EIF
• Paradise Moon Investments
• SMC India Opportunities Fund

The IPO proceeds will be used for:

• Capital expenditure (testing equipment and infrastructure).
• Working capital needs.
• Repayment of loans.
• General corporate purposes.

Key IPO Dates and Listing Plan

• Allotment Finalization: February 7
• Share Credit to Demat Accounts: February 10
• Listing Date: February 11 on the NSE Emerge platform

Financial Performance and Valuation

• April–December 2024 Revenue: ₹18.43 crore
• Net Profit for the Period: ₹2.91 crore
• FY24 Revenue: ₹20.07 crore
• FY24 Net Profit: ₹2.44 crore

Chamunda Electricals IPO Sees Strong Demand Post-IPO, Chamunda Electricals is expected to have a market capitalization of over ₹55 crore.

With strong investor interest and a promising business model, Chamunda Electricals’ IPO is poised for a robust listing.

Upcoming SME IPOs and Listings This Week: Key Details to Watch

The stock market is set to welcome five new SME IPOs this week, offering fresh investment opportunities. While the mainboard IPOs take a break, these small and medium enterprise (SME) issues are gaining attention.

Below is a breakdown of the IPOs opening for subscription, including price bands and key highlights:

1. Chamunda Electricals IPO

• Subscription Period: February 4 – February 6
• Price Band: ₹47 – ₹50 per share
• Fundraising Target: ₹14.6 crore (fresh issue of 29.19 lakh shares)
• Utilization of Proceeds: Capital expenditure, purchase of testing kits, and debt reduction

2. Ken Enterprises IPO

• Subscription Period: February 5 – February 7
• Price Band: ₹94 per share
• Fundraising Target: ₹83.65 crore
  • Fresh issue: ₹58.27 crore
  • Offer for sale (OFS): ₹25.38 crore

3. Amwill Healthcare IPO

• Subscription Period: February 5 – February 7
• Price Band: ₹105 – ₹111 per share
• Lead Manager: Unistone Capital
• Registrar: Bigshare Services
• Market Maker: Globalworth Securities

4. Readymix Construction IPO

• Subscription Period: February 6 – February 10
• Price Band: ₹121 – ₹123 per share
• Fundraising Target: ₹37.66 crore

5. Eleganz Interiors IPO

• Subscription Period: February 7 – February 11
• Price Band: ₹123 – ₹130 per share
• Lead Manager: Vivro Financial Services
• Registrar: Bigshare Services
• Market Maker: Rikhav Securities
• Allotment Date: February 12
• Listing Date: Tentatively February 14 on NSE SME

Upcoming IPO Listings to Watch

Chamunda Electricals IPO Sees Strong Demand In addition to these new IPOs, two recently concluded IPOs are set to debut on the stock market:

• Dr Agarwal’s Health Care IPO: Scheduled to list on February 5
• Malpani Pipes IPO: Expected to list on February 4

With multiple SME IPOs opening and key listings around the corner, investors have a range of opportunities to explore in the coming days.