Chamunda Electricals IPO booked 16x on first day; check subscription, price band and other key details

The initial public offering (IPO) of Chamunda Electricals Ltd opened to strong demand across investor categories on Tuesday, February 4. The ₹14.6-crore issue was fully subscribed within hours of launch, led by the retail investors.

The public offer of the operation and maintenance services provider for electric substations is open for subscription till February 6. The NSE SME issue was overall booked nearly 16 times at the end of bidding at 5 pm on the first day.

Chamunda Electricals IPO garnered bids for over 3.06 crore shares against 19.32 lakh shares on offer, leading to a subscription of 15.86 times.

The retail portion of the issue was booked 24.99 times, with bids for more than 2.41 crore shares against 9.66 lakh shares on offer. The Non-Institutional Investors (NIIs) subscribed their segment 7.7 times. The NIIs applied for 31.89 lakh shares against 4.14 lakh shares set aside for the category. The Qualified Institutional Buyers (QIBs) applied for 33.24 lakh shares against their allocation of 5.52 lakh shares.

Here’s a look at the key details about the issue for the investors interested in applying for the shares of Chamunda Electricals Ltd.

Chamunda Electricals raise ₹4.11 crore from anchor investors

Ahead of the launch of its IPO, Chamunda Electricals raised ₹4.11 crore from anchor investors. The anchor allocation round was held on February 3.

According to the circular on the NSE, the company allotted 8.22 lakh shares to three anchor investors at an offer price of ₹50 per equity share.

Vikasa India EIF I Fund - Incube Global Opportunities is the leading anchor investor of the IPO, securing anchor investor portions of 48.91%. The remaining two investors - Paradise Moon Investment Fund I, and SMC India Opportunities Fund were allocated 24.45% and 26.64% of the anchor investor portions, respectively.

Chamunda Electricals IPO price band and other details

The IPO comprises a fresh issue of 29.19 lakh shares worth ₹14.6 crore, and no offer-for-sale (OFS) component.

The company has fixed the price band at ₹47 to ₹50 per share for the IPO. The minimum lot size is 3,000 shares.

The retail investors need to apply for at least a single lot size with a minimum investment of ₹1,50,000.

GYR Capital Advisors Private Ltd is the book-running lead manager of the Chamunda Electricals IPO, while Kfin Technologies Ltd is the registrar for the issue. The market maker for the IPO is Wiinance Financial Services Private Ltd.

Chamunda Electricals IPO key dates

The IPO allotment status is expected to be finalised on Friday, February 7. Refunds will be issued on Monday, February 10, and the allottees will also receive shares in their Demat accounts on the same day.

The company has proposed to list shares on the NSE SME platform on Tuesday, February 11.

About Chamunda Electricals and use of IPO proceeds

Chamunda Electricals Ltd is a leading provider of specialised services for the operation, maintenance, testing and commissioning of electrical substations and solar power generation parks.

In the renewable energy domain, the company has completed projects like the establishment of a solar power generation park with a 1.5 MW capacity in Banaskantha district of Gujarat. The firm has also entered into a 25-year Power Purchase Agreement (PPA) with Uttar Gujarat Vij Company Ltd (UGVCL).

The company intends to utilise the funds generated from the issue to meet its capital expenditure for the purchase of net testing kit and equipment. A portion of the IPO funds will also be used for working capital requirements, repaying term loans and cash credit, and general corporate purposes.

Chamunda Electricals key financials

Chamunda Electricals’ revenue from operations of ₹18.29 crore for the period ended on December 31, 2024. Its profit after tax (PAT) was recorded at ₹2.81 crore during the same period.

For the financial year ended March 31, 2024, the company’s revenue from operations stood at ₹19.94 crore compared to ₹13.94 crore in the preceding fiscal. The company’s net profit in FY24 increased multifold to ₹2.43 crore against ₹31.21 lakh in FY23.