Strong Debut! Chamunda Electricals Shares List at ₹70 on NSE SME, Surging 40% Above IPO Price
Chamunda Electricals made a remarkable entry into the stock market on February 11, 2025, with its shares debuting at ₹70 on the NSE SME platform—a 40% premium over the IPO price of ₹50. This strong listing highlights the overwhelming investor demand and positive sentiment surrounding the company.
Chamunda Electricals IPO Overview
Chamunda Electricals’ initial public offering (IPO), valued at ₹14.60 crore, was open for subscription from February 4 to February 6. The IPO price was fixed at ₹50 per share, with a minimum lot size of 3,000 shares, requiring investors to commit at least ₹1.41 lakh to participate.
Ahead of the IPO launch, the company secured ₹4.11 crore from anchor investors on February 3, 2024, signaling early confidence in the company’s growth potential.
Outstanding Subscription Numbers
Chamunda Electricals’ IPO witnessed a staggering 737.97 times subscription, making it one of the most sought-after SME IPOs. The breakdown of the subscription figures is as follows:
- Retail investors: 554.13 times subscribed
- Non-Institutional Investors (NII): 1,943.09 times subscribed
- Qualified Institutional Buyers (QIB): 155.13 times subscribed
The sheer demand, especially from high-net-worth individuals and retail investors, played a crucial role in the company’s impressive listing.
Post-Listing Stock Performance
Despite opening at ₹70 per share, the stock saw some volatility in its early trading hours. Investors who secured shares at the IPO price enjoyed immediate gains of 40%, reflecting strong demand in the secondary market.
Chamunda Electricals’ market capitalization now stands at ₹52.3 crore, and analysts are keeping a close eye on its performance, given its robust financials and promising growth trajectory.
Utilization of IPO Proceeds
Chamunda Electricals plans to use the funds raised through its IPO for several strategic initiatives:
- Acquiring new testing kits and equipment to enhance operational efficiency.
- Meeting working capital requirements to support business expansion.
- Repayment of loans and cash credit, reducing its overall debt burden.
- General corporate expenses and IPO-related costs.
These investments are expected to strengthen Chamunda Electricals’ position in the power infrastructure sector.
About Chamunda Electricals
Founded in June 2013, Chamunda Electricals Limited is a power infrastructure company specializing in:
- Operation and maintenance of substations up to 66 KV.
- Testing and commissioning of substations up to 220 KV.
- Installation of EHV class equipment, structures, control cables, and grounding systems.
- 1.5 MW solar power generation, contributing to the renewable energy sector.
The company boasts a strong workforce of over 600 engineers, supervisors, and support staff, ensuring high-quality execution of complex power projects.
Financial Ratios & Key Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹52.3 Cr. |
| Current Price | ₹66.5 |
| Stock P/E | 21.2 |
| ROCE (Return on Capital Employed) | 44.4% |
| ROE (Return on Equity) | 52.8% |
| Debt to Equity Ratio | 0.78 |
| Debt | ₹4.61 Cr. |
| Industry P/E | 16.6 |
| Piotroski Score | 7.00 |
These financial indicators highlight Chamunda Electricals’ strong profitability and efficient capital utilization, making it an attractive stock for investors.
Future Outlook
Chamunda Electricals’ listing success signals strong investor confidence in its growth potential. With high demand for power infrastructure projects in India, the company is well-positioned to expand its footprint in the industry.
Key factors that could drive its future growth include:
- Government initiatives supporting infrastructure development.
- Increased investments in the renewable energy sector.
- Growing demand for high-voltage power solutions in industrial and commercial sectors.
While the stock’s high valuation post-listing suggests optimism, investors should keep an eye on its financial performance and industry trends.
Final Thoughts
Chamunda Electricals has set a new benchmark in the SME IPO space, with its stellar 40% listing gain. The overwhelming demand and strong fundamentals suggest long-term growth potential for the company.
With its expanding project portfolio, strong financial ratios, and high investor interest, Chamunda Electricals is certainly a stock to watch in the coming months.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.