Chamunda Electricals, a prominent player in electrical services, is launching its IPO with a fresh issue of 29.19 Lakh shares, aiming to raise ₹ 14.60 Crores. The IPO will open on February 4, 2025, and close on February 6, 2025. With a price band of ₹ 47 to ₹ 50 per equity share, investors have a chance to subscribe to this growing company. Chamunda Electricals specializes in testing and commissioning of electrical substations up to 220 KV and solar power generation parks with capacities as high as 1.5 MW. The company also offers operation and maintenance services for substations up to 66 KV, along with other associated works for electrical setups. With the grey market premium (GMP) for the IPO currently at ₹ 8, it shows promising listing gains.

Overview of Chamunda Electricals IPO

The IPO, with a lot size of 3,000 shares, allows retail investors to invest a minimum of ₹ 1,50,000, while high-net-worth individuals (HNIs) need to invest a minimum of ₹ 3,00,000 for 2 lots. The market capitalization of Chamunda Electricals, if priced at ₹ 50 per share, will be ₹ 55.02 Crores, indicating a decent size and growth potential for the company.

Key Highlights of the IPO:

• Price Band: ₹ 47 to ₹ 50 per share
• Lot Size: 3,000 shares
• Subscription Period: February 4, 2025, to February 6, 2025
• Expected Listing Date: February 11, 2025
• Grey Market Premium: ₹ 8 (approx 16% listing gain)
• Anchor Investors: Raised ₹ 4.11 Crores from anchor investors at ₹ 50 per share

Company’s Financial Performance and Metrics

Chamunda Electricals has shown strong growth in its revenues over the last few years. The revenues from operations for the fiscal year ending December 31, 2024, stood at ₹ 1,842.57 Lakh, which is an increase from ₹ 1,132.25 Lakh in FY 2022. The EBITDA for FY 2024 was ₹ 501.17 Lakh, reflecting the company’s improved profitability. The Profit After Tax (PAT) in FY 2024 was ₹ 281.48 Lakh, a significant jump from a loss of ₹ 51.28 Lakh in FY 2022. These positive results indicate the company’s strong financial position and growth trajectory.

IPO Pricing and Key Performance Indicators:

• Pre-issue EPS: ₹ 3.69
• Post-issue EPS: ₹ 2.21
• P/E Ratio: Pre-issue 13.55x, Post-issue 22.58x
• ROCE: 36.82%, ROE: 52.43%, RoNW: 41.54%

These metrics suggest that the IPO is fairly priced for investors looking for listing gains, with a potential for higher returns given the company’s stable financials.

Chamunda Electricals IPO Subscription and Allotment

As of 12:30 PM on February 4, 2025, the IPO subscription stands at 5.97 times on its first day, indicating strong demand from investors. If you're interested in checking your allotment status, the IPO allotment is expected to be finalized on February 7, 2025. Investors can track the status of their application on the registrar’s website, where they can check by entering their PAN or application number.

Objectives for Raising Funds:

Chamunda Electricals intends to utilize the net proceeds from the IPO for the following purposes:

1. ₹ 120.51 Lakhs for purchasing new testing kits and equipment.
2. ₹ 550.00 Lakhs to meet the working capital requirements of the company.
3. ₹ 285.07 Lakhs for the repayment of term loans and cash credit facilities.
4. To meet the general corporate purposes.
5. To meet the issue expenses.

How Investors Can Benefit

Given the strong financials and the promising market opportunities in the electrical services sector, this IPO offers a good opportunity for investors who are looking for solid returns and exposure to the growing electrical infrastructure industry. The grey market premium suggests the potential for listing gains, although it's essential for investors to remain cautious and evaluate their risk tolerance.

If you are considering investing in this IPO, you can apply now and join the growing trend of stock market investments in the Indian SME segment.

Key Takeaways and How to Apply

• Apply in the IPO through your demat account. If you don’t have one yet, you can easily open a free demat account with Choice Broking FinX.
• Stay up-to-date with the latest IPO news by joining our Finance Saathi Telegram Channel and get regular stock market insights and IPO updates.
• For trading calls and investment tips, join Trading with CA Abhay Telegram Channel for expert guidance from a SEBI Registered Research Analyst.

The Upcoming IPOs in this week and coming weeks are Ken Enterprises, Amwill Healthcare, Readymix Construction, Solarium Green, Eleganz Interiors.

The Current active IPO is Chamunda Electricals.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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