Chamunda Electricals made a strong debut on the NSE SME exchange with a 40% premium listing at ₹70 per share, compared to its IPO price of ₹50. However, shortly after the initial excitement, the stock hit a 5% lower circuit, signaling a volatile trading session for investors.

Chamunda Electricals IPO Performance and Listing Details

The IPO, which was open for subscription from February 4 to February 6, 2025, saw an overwhelming response from investors, with a subscription rate of 679.98 times. Retail investors, HNIs, and institutional investors all showed significant interest, making it one of the most subscribed SME IPOs in recent times.

At the listing price of ₹70 per share, investors who received allotment made an initial profit of ₹69,000 per lot, as each lot contained 3,000 shares and the minimum investment was ₹1,41,000. However, the stock soon witnessed a downturn, triggering a 5% lower circuit due to selling pressure.

Company Overview – Chamunda Electricals

Chamunda Electricals is engaged in testing and commissioning of electrical substations up to 220 KV, along with solar power generation operations with a capacity of 1.5 MW. The company also specializes in operation, maintenance, and erection of electrical substation equipment.

With a market capitalization of ₹55.02 crore at the IPO price of ₹50 per share, Chamunda Electricals raised a total of ₹14.60 crore through a fresh issue of 29.19 lakh shares. The funds will be utilized for:

1. Purchasing new testing kits and equipment.
2. Meeting working capital requirements.
3. Repaying term loans and cash credit.
4. General corporate purposes.
5. Covering issue expenses.

Chamunda Electricals IPO Grey Market Premium (GMP) Trends

The Grey Market Premium (GMP) for Chamunda Electricals IPO indicated potential listing gains of 28%, with the price expected to be ₹64 per share before listing. However, GMP is unofficial and does not guarantee actual market performance.

Chamunda Electricals IPO Subscription and Allotment Details

The anchor investor segment saw an investment of ₹4.11 crore, with 8,22,000 equity shares allocated at ₹50 per share. The allotment was finalized on February 7, 2025, and investors can check their Chamunda Electricals IPO allotment status online by:

• Visiting the registrar’s website.
• Selecting Chamunda Electricals IPO from the dropdown menu.
• Entering application number, PAN, or DP Client ID to check the status.

Financial Performance of Chamunda Electricals

The company has shown strong financial growth, with increasing revenue and profitability over the years.

Key performance indicators include:

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

Should You Invest in Chamunda Electricals IPO?

Chamunda Electricals IPO was initially attractive due to:

• Strong financial growth and profitability.
• Robust demand, with 679.98x subscription.
• High Grey Market Premium (GMP) of ₹14.

However, the 5% lower circuit post-listing indicates possible selling pressure. While the company has strong financials and a niche business, investors should assess market volatility before making decisions.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipmwnt, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Solarium Green, Ajax Engineering, Chandan Healthcare.

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