Chamunda Electricals IPO takes off; subscription soars 10x, GMP hits 22%

The initial public offering (IPO) of Chamunda Electricals, which opened for public subscription today, has received an overwhelming response from investors so far. The Rs 14.60 crore offering, available at a price band of Rs 47-50 per share with a lot size of 3,000 shares, has been oversubscribed by 10 times as of 2:30 PM on Tuesday, February 4, 2025.

 

The strong demand for this SME IPO is also reflected in the grey market, where the company's shares are commanding a strong premium. Sources tracking grey market activities revealed that Chamunda Electricals unlisted shares were trading at around Rs 61 apiece, indicating a grey market premium (GMP) of Rs 11 or 22 per cent over the upper end of the IPO price band.

 

Chamunda Electricals IPO comprises a fresh issue of 29,19,000 equity shares and will remain open for public subscription until Thursday, February 6, 2025. Investors can bid for a minimum of 3,000 shares and in multiples thereof. A retail investor requires a minimum of Rs 1,50,000 to bid for one lot (3,000 shares), whereas high-net-worth individuals (HNIs) need to bid for at least two lots (6,000 shares), amounting to Rs 3,00,000.

 

The basis of allotment for Chamunda Electricals IPO shares is tentatively scheduled to be finalised on Friday, February 7, 2025. Successful allottees will receive their shares by Monday, February 10, 2025.

 

Shares of Chamunda Electricals are expected to be listed on the NSE SME platform tentatively by Tuesday, February 11, 2025.

 

Ahead of the public issue, Chamunda Electricals announced that it had raised Rs 4.11 crore from anchor investors through a bidding process that concluded on February 3, 2025. Kfin Technologies is the registrar for the issue, while GYR Capital Advisors is acting as the book-running lead manager.

 

According to its Red Herring Prospectus (RHP), the company plans to utilise the IPO proceeds for capital expenditure, including the purchase of new testing kits and equipment, funding working capital requirements, repayment of term loans and cash credit, general corporate purposes, and issue-related expenses.

 

Chamunda Electricals is engaged in providing specialized services, including the operation and maintenance of substations up to 66 KV, testing and commissioning of electrical substations up to 220 KV, and managing a 1.5 MW solar power generation park. The company’s scope of work also includes the erection of Extra High Voltage (EHV) class equipment, structures, earthing, control cable works, and other associated services for substations up to 220 KV (D Class).