The initial public offering (IPO) Chamunda Electricals opened for bidding on Tuesday, February 4 and can be subscribed until Thursday, February 6. The company is offering its shares in the range of Rs 47-50 apiece and investors can bid for a minimum of 3,000 equity shares and its multiples.
Palanpur-based 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. Founded in June 2013, 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 is looking to raise a total of Rs 14.60 crore via IPO, which is entirely a fresh share sale of 29,19,000 equity shares. Ahead of its IPO, the company raised a total of Rs 4.11 crore via anchor investors by allocating them 8,22,000 equity shares. Anchor book included names like Paradise Moon Investments, Vikasa India EIF and SMC India Opportunities Fund.
Retail investors can apply for a single lot only or 3,000 equity shares amounting to Rs 1.5 lakh. Other investors need to apply for a minimum of two lots, or 6,000 equity shares, amounting to Rs 3 lakh. Last heard, the company was commanding a grey market premium of Rs 11 apiece, suggesting an upside potential of 22 per cent for the investors on the upper end of the price band.
The issue was overall subscribed 8.86 times as of 2.30 pm on Tuesday. The issue saw bids for 1,71,24,000 shares for the 19,32,000 shares offered. The portion for retail investors was booked 15.56 times, while the quota for non-institutional investors (NIIs) was subscribed 4.6 times. The allocation for qualified institutional bidders (QIBs) saw bids for 56 per cent as of the same time.
It has a team of more than 600 engineers, supervisors and other supporting staff well-equipped to handle complex projects with a high degree of accuracy. The net proceeds from the issue shall be utilized towards meeting the capital expenditure; funding the working capital requirements, repayment of term loans and cash credit; and meeting general corporate purposes.
GYR Capital Advisors is the book running lead manager of the Chamunda Electricals IPO, while Kfin Technologies is the registrar for the issue. The market maker for Chamunda Electricals IPO is Wiinance Financial Services. Shares of the company shall be listed on NSE emerge platform on February 11, while basis of allotment shall be finalized by Friday, February 7 and the share will be credited by Monday, February 10.
For the nine-month ended on December 31, 2024, Chamunda Electricals reported a net profit of Rs 2.91 crore with a revenue of Rs 18.43 crore. The company clocked a bottomline of Rs 2.44 crore with a revenue of Rs 20.07 crore in the financial year 2023-24. The company shall command a market capitalization of little more than 55 crore.