Chamunda Electricals is a key player in providing specialized services for the testing and commissioning of electrical substations up to 220 KV and solar power generation parks. Their services include the erection of EHV-class equipment, structures, earthing, control cables, and maintenance of substations. The company is now planning an IPO to raise funds for its expansion and business requirements.

The IPO, set at a fresh issue of ₹14.60 Crores, consists of 29.19 lakh shares with a price band of ₹47 to ₹50 per equity share. The IPO subscription period opens from February 4, 2025, and closes on February 6, 2025. The listing date for the IPO is set for February 11, 2025, with GYRCAPITAL ADVISORS PRIVATE LIMITED as the book running lead manager.

Grey Market Premium and IPO Subscription Status
As of February 5, 2025, the IPO is 70.41 times subscribed on its final day, indicating strong demand. The Grey Market Premium (GMP) is expected to be around ₹8, which suggests potential listing gains of 16%. However, it is essential to note that trading in the Grey Market is informal, and the GMP only serves as a reference.

Key Investment Objectives of the IPO
Chamunda Electricals plans to use the funds raised from the IPO for several key objectives:

• ₹120.51 Lakhs to purchase new testing kits and equipment.
• ₹550 Lakhs to fund working capital needs.
• ₹285.07 Lakhs for the repayment of term loans and cash credit.
• Remaining funds will be used for general corporate purposes and issue expenses.

Financial Performance and Metrics
The company's Revenue from Operations has shown steady growth over the years, with a significant jump in the EBITDA and Profit after Tax for the year ended December 31, 2024. With a pre-issue EPS of ₹3.69 and a post-issue EPS of ₹2.21, Chamunda Electricals is pricing its shares fairly based on its P/E ratio of 13.55x (pre-issue) and 22.58x (post-issue). This suggests that the IPO is priced reasonably within the market context.

Promoter Background
Chamunda Electricals is led by Mr. Chiragkumar Natvarlal Patel, who brings over a decade of experience in the business, along with Mr. Natvarbhai K Rathod, who has 30 years of experience in the Gujarat Electricity Board, and Mrs. Purnikaben C Patel, an expert in administrative activities.

How to Check IPO Allotment Status
The IPO allotment status for Chamunda Electricals will be finalized on February 7, 2025. Investors can check their status by visiting the registrar's website and entering their application number or PAN. This is crucial for investors to confirm if they have received the shares allotted to them.

Given the strong subscription and the GMP trends, the Chamunda Electricals IPO is an appealing option for risky investors looking for listing gains. However, potential investors should weigh the risks and rewards carefully before applying.

The Upcoming IPOs in this week and coming weeks are Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering, Hexaware Technologies.

The Current active IPO are Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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