Strong Debut! Chamunda Electricals shares list at ₹70 on NSE SME, a premium of 40% from IPO price

Chamunda Electricals IPO listing: Chamunda Electricals shares made a strong debut on Tuesday, February 11, listing at ₹70 on NSE SME, a premium of 40 percent over the issue price of ₹50.

Chamunda Electricals' initial public offering (IPO), valued at ₹14.60 crore, was open for subscription from February 4 to February 6. The SME IPO price was fixed at ₹50 per equity share.

Following the three days of bidding, Chamunda Electricals IPO closed with overwhelming demand, garnering 737.97 times bids. The IPO received bids for 142.57 crore shares against 19.32 lakh shares on offer. The retail investor segment was booked 554.13 times, while the non-institutional investors (NII) category was subscribed 1,943.09 times. Meanwhile, the Qualified Institutional Buyers quota was bid 155.13 times in the 3 days of bidding.

About the IPO

Chamunda Electricals IPO was entirely a fresh issue of 29.19 lakh shares with no offer for sale component. Retail investors could apply with a minimum lot size of 3,000 shares, requiring a minimum investment of ₹1.41 lakh.

Chamunda Electricals raised ₹4.11 crore from anchor investors ahead of the IPO on February 3, 2024.

The company intends to utilize the proceeds from the issue for several key objectives, including capital expenditure for acquiring new testing kits and equipment, funding its working capital requirements, and repaying term loans and cash credit. Additionally, a portion of the funds will be allocated toward general corporate purposes and covering issue-related expenses.

GYR Capital Advisors Private Limited is the book-running lead manager of the Chamunda Electricals IPO, while Kfin Technologies Limited is the registrar for the issue. The market maker for Chamunda Electricals IPO is Wiinance Financial Services Private Limited.

About the Company

Established in June 2013, Chamunda Electricals Limited specializes in the operation and maintenance of substations up to 66 KV, as well as testing and commissioning services for substations up to 220 KV. The company is also involved in 1.5 MW solar power generation. Its expertise extends to the erection of EHV class equipment, structures, earthing, control cable works, and other related tasks for substations up to 220 KV (D Class).

Backed by a team of over 600 engineers, supervisors, and support staff, the company is well-equipped to execute complex projects with precision and efficiency.