The Chamunda Electricals IPO 2025 has attracted attention with its fresh issue of 29.19 Lakh shares, amounting to ₹ 14.60 Crores. With a price band of ₹ 47 to ₹ 50 per share, the IPO is seen as a promising investment opportunity, with the potential for 28% listing gains as indicated by its Grey Market Premium (GMP). The IPO subscription period opened on February 4, 2025, and closed on February 6, 2025, with an impressive 679.98 times oversubscription on the final day of the subscription period.

Business Overview of Chamunda Electricals

Chamunda Electricals is engaged in specialized services such as testing and commissioning of electrical substations up to 220 kV and solar power generation parks with a capacity of 1.5 MW. The company's services extend to operation and maintenance of substations up to 66 kV and include the erection of EHV class equipment, earthing, and control cable works.

Their current scope includes both major electrical infrastructure services and niche solar power park installations, demonstrating their diverse capabilities in the electrical services sector. The company's expertise in handling complex electrical systems positions it as a strong player in the industry.

Chamunda Electricals IPO Key Details

The Chamunda Electricals IPO has a total issue size of ₹ 14.60 Crores, consisting entirely of a fresh issue of 29.19 Lakh shares. At an issue price of ₹ 50 per share, the market capitalization of Chamunda Electricals stands at ₹ 55.02 Crores. Investors must consider the lot size, which is set at 3,000 shares, meaning retail investors are required to invest a minimum of ₹ 1,50,000. Meanwhile, High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (6,000 shares), totaling ₹ 3,00,000.

Financials and Performance Metrics

As of December 31, 2024, Chamunda Electricals reported revenues from operations of ₹ 1,842.57 Lakhs, showing growth over previous fiscal years. Notably, the Profit After Tax (PAT) for FY24 stands at ₹ 281.48 Lakhs, a remarkable improvement from the negative figures in FY22. The company's EBITDA for FY24 is ₹ 501.17 Lakhs, indicating solid profitability.

The Pre-issue EPS for FY24 is ₹ 3.69, and the Post-issue EPS drops to ₹ 2.21, given the new share issuance. The P/E ratio stands at 13.55x pre-issue and 22.58x post-issue, reflecting the valuation based on the price band. Chamunda Electricals boasts impressive metrics such as a ROCE of 36.82% and ROE of 52.43% for FY24, suggesting that the company is performing well within its industry.

Chamunda Electricals IPO Grey Market Premium and Subscription Status

As of February 5, 2025, the GMP (Grey Market Premium) for Chamunda Electricals stood at ₹ 14, indicating 28% listing gains. The GMP is a non-official market gauge that gives a hint about the expected listing price of the stock. However, investors must exercise caution, as the GMP is not always an accurate predictor of actual market conditions once the shares are listed on the NSE SME.

The Chamunda Electricals IPO subscription saw 679.98 times oversubscription on the final day, showcasing significant investor interest. This oversubscription reflects the growing confidence of retail and institutional investors in the company’s future growth and market prospects.

Chamunda Electricals IPO Allotment and Listing

The allotment date for the Chamunda Electricals IPO is set for February 7, 2025, with results expected to be available on the Registrar's website. Investors can check their allotment status by entering details such as their PAN, application number, or DP Client ID.

The IPO shares are expected to be listed on the NSE SME on February 11, 2025, and the listing price will provide a clearer picture of the company's performance post-issue. Given the strong GMP and subscription data, many analysts expect a positive listing for Chamunda Electricals.

Chamunda Electricals IPO Use of Proceeds

Chamunda Electricals plans to utilize the net proceeds from the IPO for several purposes, including:

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

Conclusion and Recommendation

Given Chamunda Electricals' strong financials, diverse service offerings, and the positive GMP, this IPO appears to be a promising investment opportunity. The company’s market performance, coupled with its growth trajectory, suggests that it could provide listing gains for investors, especially for those who are willing to take on a risky investment.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

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