Chamunda Electricals Limited (CHAMUNDA), a company specializing in substation maintenance and solar power generation, made a robust debut on the NSE SME platform on February 11, 2025. The company's shares are listed at ₹70, marking a 40% premium from its issue price of ₹50.
Chamunda Electricals IPO Overview
Chamunda Electricals' Initial Public Offering (IPO) opened for subscription from February 4 to February 6, 2024. The ₹14.60 crore SME IPO was a fresh issue of 29.19 lakh shares with no offer-for-sale component.
IPO Subscription Details
The IPO saw overwhelming demand, with total subscription requests exceeding 737.97 times. The retail investor category was the most subscribed, with a 554.13 subscription, followed by non-institutional investors (NII), which saw a 1,943.09 subscription. The Qualified Institutional Buyers (QIB) segment was also oversubscribed by 155.13 times.
This strong response underscored investor confidence in the company's growth and potential.
IPO Utilization of Proceeds
The proceeds from the IPO are planned to be utilized for several key business objectives:
- Capital Expenditure: Acquisition of new testing kits and equipment.
- Working Capital: To support day-to-day operations and business growth.
- Loan Repayments: Repayment of term loans and cash credit.
- General Corporate Purposes: Allocating funds toward various corporate activities and expenses related to the issue.
About Chamunda Electricals
Chamunda Electricals was Founded in June 2013, and it specializes in operating, maintaining, testing, and commissioning substations up to 220 KV. The company also generates solar power with a capacity of about 1.5 MW. With over 600 engineers and support staff, Chamunda Electricals offers comprehensive services for high-voltage (EHV) equipment, including erecting structures, controlling cable works, and earthing for up to 220 KV substations.
The company's vast expertise in the field positions it as a trusted player for critical infrastructure projects across India.
Market Debut and Investor Outlook
Chamunda Electricals' strong market debut reflects investor optimism, backed by the company's impressive order book and diversified portfolio. The listing price of ₹70 per share offers an attractive 40% premium, indicating confidence in its continued growth and the ability to execute complex projects.
As the company expands its operations and diversifies its offerings in the renewable energy space, investors will likely monitor its long-term prospects.
Chamunda Electricals IPO Summary
- Listing Date: February 11, 2025
- Listing Price: ₹70 (40% premium over the issue price of ₹50)
- Subscription Details: IPO subscribed 737.97 times
- Sector: Electrical Services, Solar Power, and Infrastructure
- Offer Type: Fresh Issue of 29.19 lakh shares
- Proceeds Utilization: Capital expenditure, working capital, loan repayment, and corporate purposes
Summary
Chamunda Electricals Limited debuted strongly on the NSE SME platform on February 11, 2025, with its share price listing at ₹70, a 40% premium over its issue price of ₹50. Its ₹14.60 crore IPO saw massive demand, subscribed 737.97 times. The funds will be used for capital expenditure, working capital, and loan repayment. Founded in 2013, the company specializes in substation maintenance and solar power generation. The substantial listing reflects investor confidence in its growth potential and role in India's electrical and renewable energy sectors.
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