by Chamunda Electricals IPO (SME): An Overview
Chamunda Electricals launched its initial public offering (IPO) on February 4, 2025, with the subscription window open until February 6, 2025. The IPO aims to raise ₹14.60 crore through a fresh issue of 29.19 lakh shares. The shares are offered at a price range of ₹47 to ₹50 apiece. Investors can bid for a minimum of 3,000 equity shares and in multiples thereof. The IPO is scheduled to be listed on the NSE SME platform Emerge on February 11, 2025.
Chamunda Electricals intends to use the net proceeds from the IPO for capital expenditure, including acquiring new testing kits and equipment, strengthening working capital, repaying debt, and supporting general corporate purposes.
About the Company
Founded in June 2013 and based in Palanpur, Chamunda Electricals specializes in operating and maintaining up to 66 KV substations, testing and commissioning for up to 220 KV substations, and 1.5 MW solar power generation. The company’s services include erecting EHV class equipment, structures, earthing, control cable works, and other associated tasks for up to 220 KV (D Class) substations. Chamunda Electricals operates a 1.5 MW solar power park in Gujarat, secured under a 25-year PPA with UGVCL, contributing to India’s clean energy transition and long-term sustainability goals.
Management and Issue Details
GYR Capital Advisors Private Limited is the book-running lead manager for the IPO, with Kfin Technologies Limited serving as the registrar. Wiinance Financial Services Private Limited is the market maker. Ahead of its IPO, Chamunda Electricals raised ₹4.11 crore via anchor investors by allocating them 8,22,000 equity shares. The anchor book included names like Paradise Moon Investments, Vikasa India EIF, and SMC India Opportunities Fund.
Key IPO Dates
- IPO Open Date: February 4, 2025
- IPO Close Date: February 6, 2025
- Allotment Date: February 7, 2025
- Refund Initiation: February 10, 2025
- Shares Credit to Demat: February 10, 2025
- Listing Date: February 11, 2025
Pricing and Lot Size
The IPO price band is set at ₹47 to ₹50 per share. The minimum lot size for retail investors is 3,000 shares, requiring a minimum investment of ₹1,50,000. Other investors need to apply for a minimum of two lots, or 6,000 equity shares, amounting to ₹3 lakh.
How to Apply
To apply for the Chamunda Electricals IPO, follow these steps:
- Log in to Your Trading Account: Access your trading account through your broker’s platform.
- Navigate to the IPO Section: Go to the IPO section to view active IPO listings.
- Select Chamunda Electrical IPO: Find “Chamunda Electrical IPO” and click on the ‘Apply’ button.
- Enter Application Details: Specify the number of lots (minimum lot size: 3,000 shares) and the bid price within the range of ₹47 to ₹50 per share.
- Provide Your UPI ID: Enter your UPI ID for payment authorization. Ensure sufficient funds are available in your linked account.
- Review and Submit: Verify all the details entered before submitting the application. Approve the UPI mandate before 5 PM on February 6, 2025, to complete your application process.
Financial Performance
Chamunda Electricals has shown growth in its total assets, increasing from ₹8.74 crore in FY22 to ₹18.06 crore as of December 2024.
Industry Outlook
India’s power sector is rapidly expanding, making it the third-largest electricity producer globally. The renewable energy sector is also growing, with the government aiming to meet 50% of electricity needs from renewable sources by 2030. This transition creates significant opportunities for Chamunda Electricals to contribute through solar power generation and substation projects.
Grey Market Premium (GMP)
Chamunda Electricals is commanding a Grey Market Premium (GMP) of ₹11 in the unlisted market ahead of the issue opening, indicating a premium of 22%.
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