The initial public offer (IPO) of Chamunda Electricals has received a tremendous response from investors. The subscription of this IPO has reached 56.16 times till the last day, making it one of the most sought-after IPOs of the SME platform. The company had offered 19,32,000 shares in this issue of ₹ 14.60 crore, but against this, bids have come for 10,84,98,000 shares. This shows how enthusiastic the investors are about this IPO. Especially, retail investors have subscribed to it up to 81.77 times, while non-institutional investors (NII) were 59.85 times and the subscription of qualified institutional buyers (QIB) was 8.58 times. The issue opened on 4 February 2025 and closed on 6 February 2025.
Chamunda Electricals Limited operates in the supply and distribution of electrical products, transformers, cables, and industrial equipment in India. The company’s business model is strong and its client base is spread across both the public and private sectors. The IPO is a completely fresh issue, in which a total of 29.19 lakh new shares have been issued. Its price band has been kept at ₹ 47 to ₹ 50 per share. To invest in this IPO, investors are required to buy a lot of at least 3,000 shares, due to which retail investors will have to invest at least ₹ 1,50,000. At the same time, for high net-worth individuals (HNIs), it will be necessary to invest in at least two lots i.e. 6,000 shares, the value of which will be close to ₹ 3,00,000.
There is also a lot of activity in the gray market regarding the IPO of Chamunda Electricals. According to current market data, the unlisted shares of the company are currently trading at a premium of ₹ 66 per share, which is 32% higher than its upper price band of ₹ 50. This means that investors can make good profits at the time of listing. However, the gray market premium (GMP) always depends on the market situation and investor sentiment, so it is possible to change till the listing.
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The share allotment process of this IPO will be completed on 7 February 2025 and after this, it will be listed on the NSE SME platform on 11 February 2025. The lead manager of the IPO is GYR Capital Advisors Private Limited, while KFin Technologies Limited is its registrar. Finance Financial Services Private Limited has been appointed as the market maker for this IPO.
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The tremendous interest of investors in Chamunda Electricals IPO shows that the company’s business model is attractive to investors. SME IPOs are usually known for high returns, but they also carry high risk. The tremendous over-subscription of this IPO and strong gray market premium indicates that it may perform well on the day of listing. However, due to low liquidity on the SME platform, it will be necessary to formulate a long-term strategy before investing in it. For investors who aim only for short-term listing gains, this IPO can be an attractive opportunity, but for long-term investment, it will be necessary to keep in mind the financial position and growth potential of the company.
