Chamunda Electricals IPO: Huge Demand with 28.5 Times Subscription on Day 2
The SME IPO of Chamunda Electricals has witnessed tremendous demand, with an impressive 28.5 times oversubscription on the second day of bidding, as of 12:22 pm on February 5, 2025. The company is offering a book-built issue worth Rs 14.60 crores, comprising 29.19 lakh shares. The IPO will remain open for subscription until February 6, 2025, making it one of the most anticipated IPOs in the SME sector.
Retail and Institutional Demand
The retail portion of the IPO has seen an overwhelming response, with 43.2 times subscription, indicating strong confidence among individual investors. Meanwhile, the issue was subscribed 24.1 times in the non-institutional investor category, while the qualified institutional buyers (QIBs) segment saw a 6.02 times subscription.
Grey Market Premium (GMP)
Ahead of its listing, the shares of Chamunda Electricals were trading at a grey market premium (GMP) of Rs 13 on Day 2, reflecting a 26% premium over the upper end of the IPO price band of Rs 50. This indicates positive sentiment among investors and a strong possibility of a solid listing on the NSE SME platform.
Chamunda Electricals IPO Price Band & Proceeds Usage
The price band for Chamunda Electricals IPO has been set at Rs 47-50 per share, with a lot size of 3,000 shares. The IPO allocation is split into 50% for institutional investors, 35% for retail investors, and 15% for non-institutional investors.
The net proceeds from the IPO will be utilized for various purposes, including:
- Capital expenditure to acquire new testing kits and equipment.
- Support for working capital requirements.
- Debt repayment.
- Funding for general corporate purposes.
IPO Allotment and Listing Date
The allotment process for the IPO is expected to be finalized on February 7, 2025, with the shares scheduled to be listed on the NSE SME platform on February 11, 2025.
About Chamunda Electricals
Chamunda Electricals is a prominent player in the operation and maintenance of substations up to 66 KV (kilovolt) and the testing and commissioning of substations up to 220 KV. The company is also involved in solar power generation parks with a capacity of 1.5 MW. Its services encompass the erection of EHV class equipment, structures, earthing, control cable works, and more for substations up to 220 KV.
The company has a track record of strong performance, with a revenue of Rs 18 crore and a profit after tax (PAT) of Rs 2.81 crore for the period ending November 2024. This growth is supported by the increasing demand for power generation in India, which grew at a CAGR of 4.75% from FY10 to FY23.
Stay tuned for more updates as the Chamunda Electricals IPO continues to make waves in the SME sector.