Chamunda Electricals IPO sees massive demand, with a ₹14.60 Cr issue at ₹47-₹50 per share
Chamunda Electricals Limited, a prominent player in India’s electrical infrastructure sector, has recently launched its Initial Public Offering (IPO), garnering significant attention from investors. The IPO, which opened on February 4, 2025, and closed on February 6, 2025, aims to raise ₹14.60 crore through the issuance of 29,19,000 equity shares. The price band for the offering is set between ₹47 and ₹50 per share, with a minimum lot size of 3,000 shares.
Company Overview
Established in 1992, Chamunda Electricals has built a reputation for delivering comprehensive electrical solutions across various industries, including power, infrastructure, and real estate. The company’s services encompass design, supply, installation, testing, and commissioning of electrical projects. Over the years, Chamunda Electricals has demonstrated a commitment to quality and innovation, positioning itself as a trusted partner in India’s evolving electrical landscape.
IPO Objectives
The primary objectives of the IPO are to fund business expansion initiatives and strengthen the company’s financial stability. Proceeds from the offering are expected to be utilized for working capital requirements, debt repayment, and general corporate purposes. This strategic move aims to enhance Chamunda Electricals’ operational capabilities and market presence, enabling it to capitalize on emerging opportunities in the electrical infrastructure sector.
Subscription Details
The IPO has witnessed an overwhelming response from investors. By the end of the subscription period on February 6, 2025, the issue was oversubscribed by approximately 23.29 times, indicating robust demand. Retail investors are required to invest a minimum of ₹1,50,000 for one lot (3,000 shares), while high-net-worth individuals (HNIs) must bid for at least two lots (6,000 shares), amounting to ₹3,00,000.
Grey Market Premium (GMP) Insights
The Grey Market Premium (GMP) serves as an indicator of investor sentiment toward an IPO before its official listing. As of February 6, 2025, Chamunda Electricals’ shares are commanding a GMP of ₹15, suggesting a potential listing price of ₹65 per share. This reflects a premium of 30% over the upper end of the issue price band, underscoring positive market expectations.
Key Dates and Listing Information
The basis of allotment for the IPO shares is scheduled to be finalized on February 7, 2025. Successful allottees can expect the credit of shares to their demat accounts by February 10, 2025. The company’s shares are anticipated to be listed on the NSE SME platform on February 11, 2025.
Market Expectations and Analyst Perspectives
The strong subscription numbers and notable GMP indicate high investor confidence in Chamunda Electricals’ growth prospects. Analysts attribute this optimism to the company’s established track record, strategic focus on infrastructure development, and the increasing demand for electrical solutions in India. The successful IPO is expected to provide the company with the necessary capital to expand its operations, invest in new technologies, and strengthen its market position.
Chamunda Electricals’ IPO has garnered significant attention, reflecting the company’s strong market standing and growth potential. The funds raised are poised to support strategic initiatives aimed at business expansion and financial fortification. As the company prepares for its listing, investors and market observers will keenly monitor its performance, anticipating that Chamunda Electricals will leverage the IPO proceeds to drive future success in the dynamic electrical infrastructure sector.
