Chamunda Electricals Limited, operation and maintenance services provider for electrical substations, is gearing up for its highly anticipated market debut with an Initial Public Offering (IPO) valued at ₹14.60 crores. The company is offering 29.19 lakh fresh shares, with the subscription window set to open on February 4, 2025, and close on February 6, 2025. Investors will have the opportunity to follow the company’s journey as it prepares for its listing on the NSE SME platform, scheduled for February 11, 2025.
The IPO offers equity shares with a ₹10 face value, priced within a band of ₹47 to ₹50 per share, with a minimum lot size of 3,000 shares. Retail investors can enter with a minimum investment of ₹150,000 for one lot, while High Net-worth Individuals (HNIs) are required to invest at least ₹300,000 for two lots. The share allotment process is expected to be quick, with notifications due on February 7, 2025. As Chamunda Electricals steps into the public market, it offers a compelling investment opportunity within India’s growing energy sector.
Chamunda Electricals Limited IPO is a fundraise worth ₹14.60 crores consisting purely of a fresh issue with 165,000 shares reserved for the market maker Wiinance Financial Services Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from February 4, 2025, to February 6, 2025, providing an opportunity for investors looking to gain a stake in the energy sector.
| Chamunda Electricals IPO date | February 4, 2025 - February 6, 2025 |
| Price band / Fixed price | ₹47 to ₹50 per share |
| Face value | ₹10 per share |
| Lot size | 3,000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 29,19,000 shares amounting to ₹14.60 crores |
| Total issue size | 29,19,000 shares amounting to ₹14.60 crores |
| Listing at | NSE SME |
| Market maker portion | 165,000 - Wiinance Financial Services Pvt Ltd |
| Shareholding post-issue | 1,10,04,594 shares |
| Shareholding pre-issue | 80,85,594 shares |
The Chamunda Electricals Limited IPO opens for subscription on February 4, 2025, and closes on February 6, 2025, with allotment scheduled for February 7, 2025.
| IPO open date | February 4, 2025 (Tuesday) |
| IPO close date | February 6, 2025 (Thursday) |
| Basis of allotment | February 7, 2025 (Friday) |
| Initiation of refunds | February 10, 2025 (Monday) |
| Credit of shares to Demat account | February 10, 2025 (Monday) |
| Listing date on BSE / NSE SME | February 11, 2025 (Tuesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 6, 2025 (Thursday) |
Chamunda Electricals Limited, established in June 2013, specializes in the operation and maintenance of substations up to 66 KV, testing and commissioning of substations up to 220 KV, and 1.5 MW solar power generation. The company offers services including the erection of EHV class equipment, structures, earthing, control cable works, and other tasks related to substations up to 220 KV. With over 600 skilled engineers, supervisors, and staff, Chamunda Electricals ensures high precision and efficiency in managing complex projects.
The company’s operations are divided into three main categories: the operation, maintenance, testing, and commissioning of electrical substations; the setup of solar power generation parks; and the installation and commissioning of electrical equipment designed to operate at voltages typically up to 220 kV. As of December 31, 2024, Chamunda Electricals had a workforce of 637 full-time employees dedicated to these activities.
The proceeds from the issue will be used for several purposes, including purchasing new testing kits and equipment, funding the company’s working capital needs, repaying term loans and cash credit, covering general corporate expenses, and addressing issue-related costs.
The Chamunda Electricals Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 52.43%, Return on Capital Employed (ROCE) at 36.82% and a Debt-to-Equity ratio of 0.78. The Return on Net-Worth (RoNW) stands at 41.54%, and the PAT Margin was 12.21%. The Price to Book Value was 10.59. The company’s market capitalisation is ₹55.02 crore.
| Period Ended | December 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 18.06 | 12.13 | 8.71 | 8.74 |
| Revenue | 18.43 | 20.07 | 14.01 | 11.32 |
| Profit After Tax | 2.81 | 2.44 | 0.31 | -0.51 |
| Net Worth | 10.93 | 5.86 | 3.43 | 3.12 |
| Reserves & Surplus | 2.84 | 3.86 | 1.43 | 1.12 |
| Total Borrowing | 2.92 | 4.61 | 3.69 | 4.65 |
Amount in ₹ crores
The pre-IPO EPS is at ₹3.01 while the post-IPO EPS will be ₹3.41. Similarly, the pre-IPO Price to Earnings ratio is 16.59 and will become 14.66 post-IPO.
Chamunda Electricals Limited brings robust technical expertise and execution capabilities to the power sector, built on over a decade of operational experience. Their advanced equipment and skilled workforce of over 600 employees enables them to handle complex projects with precision across 77 substations. This technical foundation is reinforced by strong leadership, with experienced promoters and board members providing strategic direction that has helped establish their reputation in the industry.
The company demonstrates strong potential for growth through their scalable business model and substantial work order book. Their expansion into EHV testing and commissioning services opens up new market opportunities, while their proven track record in executing complex power sector projects positions them well for securing future contracts. Their investment in cutting-edge technology and modern machinery further enhances their competitive advantage in delivering high-quality electrical infrastructure solutions.
A significant vulnerability lies in the company's heavy dependence on government contracts and high customer concentration, with their top 10 clients accounting for 100% of revenue. This overdependence on a limited customer base, combined with the uncertainties inherent in government tender processes, creates substantial revenue risks. Additionally, their limited geographical presence outside their primary operating regions restricts their market reach and growth potential.
The company faces operational challenges due to the working capital-intensive nature of their business model. Payment delays and cost overruns can significantly impact their liquidity and project timelines. Moreover, their narrow focus on electrical substation projects, which accounts for over 85% of revenue, exposes them to sector-specific risks and limits their ability to diversify revenue streams. The high operational costs associated with maintaining advanced technology and a skilled workforce further pressures their profit margins in an intensely competitive bidding environment.
Becoming one of the first public investors in Chamunda Electricals Limited offers an exciting opportunity to be part of the company’s growth in the thriving energy sector. However, potential investors should thoroughly evaluate various factors, such as the company's operational performance, financial stability, market trends, and growth strategy. It’s also important to align this investment with your personal financial goals and risk tolerance. To make a well-informed decision, it's advisable to review the offer document carefully and consult with a financial advisor if necessary before committing to the IPO.
What is the Chamunda Electricals Limited IPO?
The Chamunda Electricals Limited IPO is an NSE SME offering consisting of 29.19 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹14.60 crores. The price band has been set between ₹47 to ₹50 per share, with a minimum order quantity of 3,000 shares. This IPO will be open for subscription from February 4, 2025, to February 6, 2025. GYR Capital Advisors Private Limited is the book-running lead manager, Kfin Technologies Limited is the registrar while Wiinance Financial Services Private Limited is the market maker.
When will the Chamunda Electricals IPO open?
The Chamunda Electricals Limited IPO will open for subscription on February 4, 2025, and will close on February 6, 2025.
When is the Chamunda Electricals IPO listing date?
The tentative listing date for the Chamunda Electricals Limited IPO is Tuesday, February 11, 2025.
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