Chamunda Electrical Ltd

Published On: 01/02/20252.4 min read

Chamunda Electrical Limited, a prominent player in the electrical services sector, is set to launch its Initial Public Offering (IPO) on February 4, 2025. This article provides a comprehensive overview of the company’s background, IPO specifics, financials, and other pertinent details to assist potential investors in making informed decisions.

Company Overview

Chamunda Electrical Limited specializes in providing specialized services for the operation and maintenance of substations up to 66 KV, testing and commissioning of electrical substations up to 220 KV, and operates a solar power generation park with a capacity of 1.5 MW. Their services encompass the erection of EHV class equipment, structures, earthing, control cable works, and other associated tasks for substations up to 220 KV. The company’s tailored service offerings have garnered a diverse clientele across various industries.

IPO Timeline

  • Issue Opening Date: February 4, 2025
  • Issue Closing Date: February 6, 2025
  • Listing Date: February 10, 2025

Price Band

The IPO is priced between ₹47 to ₹50 per equity share.

Lot Size

Investors can bid for a minimum of one lot, comprising 3,000 shares. Therefore, the minimum investment amount is ₹150,000.

Key Dates

  • Anchor Investor Bidding Date: February 3, 2025
  • Allotment Date: February 8, 2025
  • Refunds Initiation: February 9, 2025
  • Shares Credit to Demat Accounts: February 9, 2025
  • Listing Date: February 10, 2025

Financials

As per the Draft Red Herring Prospectus (DRHP) filed on September 26, 2024, Chamunda Electrical reported the following financials:

  • Revenue: ₹20.07 Crores
  • Profit After Tax (PAT): ₹2.46 Crores

These figures reflect the company’s steady growth and profitability in the electrical services sector.

Strengths

  • Diverse Service Portfolio: The company offers a wide range of services, including operation and maintenance of substations, testing, commissioning, and solar power generation.
  • Experienced Management Team: Led by industry veterans, the company benefits from extensive expertise in the electrical services domain.
  • Established Clientele: Chamunda Electrical has built strong relationships with clients across various industries, underscoring its reputation and service quality.

Risks

  • Industry Competition: The electrical services sector is highly competitive, with numerous players vying for market share.
  • Regulatory Challenges: Compliance with evolving industry regulations can pose challenges and impact operations.
  • Project Execution Risks: Delays or issues in project execution can affect profitability and client satisfaction.

IPO Anchor Investors Details

As of now, specific details regarding anchor investors have not been disclosed. Investors are advised to monitor official announcements for updates.

IPO Promoter Holding

Detailed information about the promoter holding structure is currently unavailable. Investors should refer to the company’s official communications for comprehensive details.

IPO Grey Market Premium (GMP)

As of February 1, 2025, the Grey Market Premium for Chamunda Electrical’s IPO is estimated at ₹11, suggesting a potential listing price of ₹61 per share, which indicates a 22% gain over the upper price band.

Final Thoughts

Chamunda Electrical Limited’s upcoming IPO presents an opportunity for investors to participate in a company with a solid track record in the electrical services sector. Potential investors should carefully consider the company’s financials, strengths, and associated risks before making investment decisions. Staying updated with official announcements and consulting financial advisors is recommended to make informed choices.

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