Chamunda Electricals IPO closes today; subscription soars 56x, GMP at 30%

Chamunda Electricals IPO Day 3: The initial public offering (IPO) of Chamunda Electricals, which opened for public subscription on Tuesday, February 4, 2025, is set to close today, Thursday, February 6, 2025. Available at a price band of Rs 47-50 per share, with a minimum lot size of 3,000 shares, the Rs 14.60 crore SME offering has witnessed strong investor demand.

 

According to data from the National Stock Exchange (NSE), the IPO was oversubscribed 56.10 times as of 10:26 AM on Thursday.

 

Chamunda Electricals IPO consists of a fresh issue of 29,19,000 equity shares. Retail investors are required to invest a minimum of Rs 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 Rs 3,00,000.

 

Unlisted shares of Chamunda Electricals continue to command a strong premium in the grey market. Sources tracking grey market activity revealed that the company’s shares were trading at approximately Rs 65 apiece, reflecting a GMP (grey market premium) of Rs 15 or 30 per cent over the upper price band.

 

The basis of allotment of Chamunda Electricals shares is expected to be finalised on Friday, February 7, 2025, and the successful investors will likely receive the company’s shares in their demat accounts by Monday, February 10, 2025. Chamunda Electricals is slated to list on the NSE SME platform tentatively on Tuesday, February 11, 2025.

 

KFin Technologies serves as the registrar for the IPO, while GYR Capital Advisors is the book-running lead manager.

 

Chamunda Electricals has already raised Rs 4.11 crore from anchor investors in a bidding process completed on February 3, 2025. In its Red Herring Prospectus (RHP), the company stated that it intends to use the IPO proceeds for capital expenditure, including acquiring new testing kits and equipment, meeting working capital requirements, repaying term loans and cash credit, funding general corporate purposes, and covering issue-related expenses.

 

Chamunda Electricals is engaged in the business of providing specialised services in operation and maintenance of substations up to 66 KV, testing and commissioning of electrical substations up to 220 KV, and solar power generation, including the operation of a 1.5 MW solar park. The company also provides services for the erection of EHV-class equipment, structures, earthing, control cable works, and other associated activities for substations up to 220 KV (D Class).