Chamunda Electricals IPO: High Demand

Chamunda Electricals IPO Sees Huge Demand

The initial public offering (IPO) of Chamunda Electricals has opened to a fantastic response from investors. The IPO was subscribed over 16 times on its first day, Tuesday. Retail investors showed strong interest, bidding for 2,56,62,000 shares against the 9,66,000 shares on offer.

Key IPO Details

Chamunda Electricals plans to raise Rs 14.6 crore through this IPO, with a fresh issue of 29.19 lakh shares. The price band is set at Rs 47 to Rs 50 per share. Retail investors need to buy a minimum of one lot of 3,000 shares, meaning a minimum investment of Rs 1,50,000 at the upper price band. The promoters of the company are Mr. Chiragkumar Natvarlal Patel, Mr. Natvarbhai K Rathod and Mrs. Purnikaben C Patel. Ahead of the IPO launch, the company raised Rs 4.11 crore from anchor investors on February 3rd. The IPO subscription period is open until February 6th, 2024. Share allotment will be finalized on February 7th, and successful bidders can expect the shares in their Demat accounts by February 10th. The shares are expected to list on the NSE SME (Emerge) platform on February 12th.

Subscription Status and Grey Market Premium

As of Wednesday morning, the IPO subscription had reached 22.8 times. Retail investors continued to drive demand, with their portion subscribed over 37 times. Qualified Institutional Buyers and Non-Institutional Buyers also participated actively. The grey market premium (GMP) for the IPO is around Rs 13. This suggests that the shares could list at around Rs 63 on the NSE, a 26% premium over the IPO price. However, remember that GMP is unofficial and based on market speculation.

About Chamunda Electricals

Chamunda Electricals is based in Palanpur and specializes in operating and maintaining electrical substations up to 66 KV. They also handle testing and commissioning of substations up to 220 KV. The company is also involved in solar power generation with a capacity of 1.5 MW.

Their business verticals include:

* Operation & Maintenance of Electrical Sub-stations
* Erection of EHV class equipment
* Solar-Power generation park
* Testing & Commissioning of Electrical Sub-stations

Use of IPO Proceeds

Chamunda Electricals intends to use the funds raised from the IPO for various purposes. This includes capital expenditure for new testing kits and equipment. They also plan to use the funds for working capital needs and to repay some loans. The remaining funds will be allocated for general corporate purposes and expenses related to the IPO.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top