Chamunda Electricals Limited is set to launch its initial public offering (IPO) from February 4 to February 6, 2025, aiming to raise approximately ₹14.60 crores. The IPO will consist of a fresh issue of equity shares priced between ₹47 and ₹50 each, with a face value of ₹10. Specializing in operating and maintaining substations up to 66 kV and testing for up to 220 kV, the company also engages in solar power generation with a capacity of 1.5 MW.
₹20
₹50
₹70
Expert Opinions
Market sentiment for the Chamunda Electricals IPO is cautiously optimistic, fueled by increasing investments in electrical infrastructure and renewable energy solutions. Chamunda Electricals has established itself as a reliable player in operating and maintaining substations, with a solid track record and a skilled workforce of over 600 professionals. However, risks include reliance on government contracts, which can be subject to policy changes, and competition from larger firms in the electrical services sector.
The IPO valuation reflects a net profit margin of 12.34%, return on equity (ROE) of 52.83%, and return on assets (ROA) of 20.56%, indicating strong profitability metrics. From a long-term investment perspective, Chamunda Electricals is well-positioned to benefit from the growing demand for electrical services.
Investor Considerations
Investors considering the Chamunda Electricals IPO should evaluate several key aspects. Company performance and fundamentals show a positive trajectory, with revenue increasing from ₹11.23 crores in FY2022 to ₹19.95 crores in FY2024, alongside a significant turnaround to a profit after tax (PAT) of ₹2.44 crores, indicating operational efficiency. The sector outlook is favorable, driven by rising demand for electrical infrastructure and renewable energy, particularly in India’s growing economy.
The IPO valuation shows a price-to-earnings (P/E) ratio of approximately 20.50, a price-to-book (P/B) ratio of 3.15, and a debt-to-equity ratio of 0.25, suggesting a stable financial position. Growth prospects remain strong with plans for expanding service offerings and enhancing operational capabilities. However, potential risk factors include dependency on government contracts and competition within the sector. A long-term investment horizon is advisable as Chamunda aims to leverage favorable trends in the electrical services market for sustained growth.
| Date | GMP | Trend |
|---|---|---|
| 10 Feb 2025 10.36 | ₹20 | --- |
| 09 Feb 2025 12.19 | ₹20 | Down |
| 08 Feb 2025 20.46 | ₹30 | --- |
| 07 Feb 2025 20.04 | ₹30 | --- |
| 06 Feb 2025 19.59 | ₹30 | Up |
| 05 Feb 2025 11.05 | ₹15 | Up |
| 04 Feb 2025 11.33 | ₹10 | --- |
| 03 Feb 2025 11.22 | ₹10 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Chamunda Electricals’ listing performance. The GMP of ₹20 predicted a premium of 40% over the issue price, and the stock delivered exactly the same gain of 40%. With zero prediction error, the GMP perfectly captured both the direction and magnitude of the listing gains, demonstrating exceptional precision in this case.
Chamunda Electricals IPO Current GMP is ₹20.
Chamunda Electricals IPO Expected Returns is 40.00%.
Chamunda Electricals IPO estimated listing price is ₹70.