Chamunda Electricals IPO Review

Chamunda Electricals Limited is launching its SME IPO on the NSE platform, opening for subscription on February 4, 2025, and closing on February 6, 2025. The Chamunda Electricals IPO aims to raise ₹14.60 crores through a 100% fresh issue. The price band is set at ₹47 to ₹50 per share, with a minimum lot size of 3,000 shares. while Doing Chamunda Electricals IPO Review, it is imposrtant to track GMP. As of today, the Chamunda Electricals IPO GMP (Grey Market Premium) is ₹0, indicating no extra demand in the unofficial market.

Chamunda Electricals IPO GMP Today

As of February 1, 2025, the Chamunda Electricals IPO GMP is ₹0, suggesting no significant demand in the grey market. Investors should not rely solely on GMP and should evaluate financial performance, promoter holdings, and business model before investing.

Chamunda Electricals IPO Details

Particulars	Details
Issue Size	₹14.60 crores
Offer for Sale (OFS)	Not applicable (entirely a fresh issue)
Price Band	₹47 to ₹50 per share
Minimum Lot Size	3,000 shares
Retail Quota	35% of the net issue
Non-Institutional Investors	15% of the net issue
Qualified Institutional Buyers	50% of the net issue
IPO Type	Book Built Issue
IPO Opening Date	February 4, 2025
IPO Closing Date	February 6, 2025
Allotment Date	February 7, 2025
Listing Date	February 11, 2025
DRHP	DRHP PDF

IPO Objectives

Chamunda Electricals Ltd plans to use the IPO funds for:

Capital Expenditure – Buying new testing kits and equipment.
Working Capital Requirements – To support day-to-day operations.
Debt Repayment – Reducing outstanding loans.
General Corporate Purposes.

Chamunda Electricals Limited: Company Overview & Operating Model

Chamunda Electricals Limited, incorporated in 2013, is engaged in power infrastructure services, specializing in operation, maintenance, testing, and commissioning of electrical substations up to 220 KV. The company has a strong presence in Gujarat and Dadra & Nagar Haveli, where it provides solutions for government utilities, state electricity boards, and private power distribution companies.

Business Model & Revenue Streams

Chamunda Electricals operates a B2B model, generating revenue through:

Substation Erection, Testing & Commissioning – Installation of transformers, circuit breakers, and high-voltage electrical equipment.
Operation & Maintenance (O&M) Contracts – Ensuring uninterrupted power supply through periodic maintenance.
Solar Power Generation – Managing a 1.5 MW solar plant, aligning with India’s renewable energy goals.
Earthing & Control Cable Works – Providing safety and infrastructure solutions to electrical substations.

The company’s top 5 clients contribute 100% of its revenue, highlighting its dependency on a few key customers.

Market Presence & Expansion Strategy

Chamunda Electricals currently derives 85.64% of revenue from Gujarat and 14.36% from Dadra & Nagar Haveli, with plans to expand geographically and diversify its customer base. The company is also investing in:

Advanced Testing Equipment – Setting up a NABL-certified testing lab in Surat to improve service capabilities.
EHV Expansion – Increasing expertise in Extra High Voltage (EHV) power transmission systems to secure large-scale projects.

Despite its strengths, the company faces challenges such as limited geographical presence and dependency on a few clients. However, its scalable business model and focus on infrastructure growth position it well for future expansion

Financial Performance

Financial Year	Revenue (₹ in crores)	Profit After Tax (₹ in crores)
FY 2023	14.01	0.31
FY 2024	20.07	2.46

Key Financial Observations:

Revenue grew by 43% YoY.
Profit increased nearly 8 times in FY 2024.
Chamunda Electricals SME IPO financials show strong growth but with a small base.

Peer Comparison

Chamunda Electricals operates in a niche segment with limited direct competitors. However, investors can compare it with listed SME power infrastructure companies for relative valuation.

Promoter Holding

Promoter	Pre-Issue Holding (%)	Post-Issue Holding (%) (Tentative)
Chiragkumar Natvarlal Patel (MD & CFO)	53.04%	[●]
Natvarbhai K Rathod (Whole-Time Director)	21.48%	[●]
Purnikaben C Patel	8.60%	[●]
Shantaben N Rathod	13.33%	[●]

Chamunda Electricals IPO Review: Apply or Not?

The Chamunda Electricals IPO has some positives but also a few risks. On the positive side, the company has shown strong revenue growth of 43% year-on-year in FY 2024 and has increased its profits significantly, from ₹0.31 crore to ₹2.46 crore. The business is also diversified, focusing on electrical infrastructure, which could help it grow in the future.

However, there are some concerns. The grey market premium (GMP) is currently ₹0, suggesting weak interest in the market. Also, the company faces a high revenue concentration risk since its top 5 clients account for 100% of its revenue. Additionally, as an SME IPO, Chamunda Electricals carries more risk and may have lower liquidity once listed, which could affect the stock’s price movement.

FAQs

What are the IPO dates for Chamunda Electricals Limited?
- The IPO opens on February 4, 2025, and closes on February 6, 2025.
What is the Chamunda Electricals IPO GMP Today?
- The current Chamunda Electricals IPO GMP is ₹0, showing no premium.
What is the minimum investment required?
- Minimum lot size is 3,000 shares, requiring an investment of ₹1,50,000.
When will Chamunda Electricals shares be listed?
- The shares will be listed on February 11, 2025, on NSE Emerge.
Is Chamunda Electricals IPO a good investment?
- The company has strong financial growth, but zero GMP and revenue concentration risks make it a moderate-risk investment.

Disclaimer – This review is for informational purposes only and does not constitute financial advice. Investing in IPOs involves risks, and it’s important to do thorough research or consult with a financial advisor before making any investment decisions.

Source – information shared here is refered from Chamunda Electricals DRHP.