Chamunda Electricals IPO: Chamunda Electricals, a leading electrical and solar energy company in Gujarat, will launch its first SME IPO on 4 February 2024. In this article, we will know all the important information related to this IPO in a simple and detailed manner. So that investors and interested readers can understand the company’s business model, the objective of the IPO, and the investment opportunities and risks in depth. In this article, you will know why this IPO is the first SME IPO of February, where the company will use the IPO funds, and whether investing in its shares can benefit you. So let us first know about the business of Chamunda Electricals and the objective of the IPO.
Chamunda Electricals Business and IPO Objective
Chamunda Electricals primarily operates in two areas: electrical substation operation and maintenance and solar power generation. The company maintains substations up to 66 KV and provides testing and commissioning services for substations up to 220 KV. It also develops solar parks up to 1.5 MW capacity. For example, if a government scheme is for a 50 MW solar plant, Chamunda Electricals handles infrastructure design, commissioning, and long-term maintenance for the same.
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Through this IPO, the company wants to raise ₹ 14.6 crore, which will be used to purchase new testing equipment, meet working capital requirements, and repay debt. Here you can see the key details of the IPO through the table given below:
| Chamunda Electricals IPO Dates & Details | Description |
|---|---|
| IPO opening date | 4 February 2024 |
| IPO closing date | 6 February 2024 |
| price per share | ₹47-50 |
| Total Target Amount | ₹14.6 crore |
| Listing Date (NSE Emerge) | 11 February 2024 |
| Book Running Lead Manager | Gyrcapital Advisors |
Chamunda Electricals Opportunities and Risks for Investors
This IPO of Chamunda Electricals may be of interest to investors who want to participate in India’s growing renewable energy and electrical infrastructure sector. The Indian government has set a target of 500 GW of renewable energy generation by 2030, in which the demand for solar projects will grow rapidly. The expansion of electrical substations in states like Gujarat and Rajasthan can also create new opportunities for the company.
However, investing in an SME IPO carries certain risks. Chamunda Electricals’ revenue is limited so far, and competition in the solar sector is growing rapidly. Due to its small size, market fluctuations can have a sharp impact on the stock price. Therefore, it is important to analyze the company’s financials, market position and plans before investing.
Chamunda Electricals Allotment & Listing Process
Applications for the Chamunda Electricals IPO can be made between February 4 and 6, and allotment of shares will be completed by February 7. Shares of successful applicants will be listed on the NSE Emerge platform on February 11. The book for anchor investors will open on February 3, which will give institutional investors an opportunity to get allotted shares even before the IPO.
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Conclusion
This SME IPO of Chamunda Electricals can be an attractive option for investors, especially those looking for long-term opportunities in the electrical infrastructure and solar energy sector. The company’s focus is on sectors in line with government schemes, which indicates future growth. However, investors need to be cautious due to the small size and competitive market. It would be wise to seek market analysis and financial advice before participating in this IPO. If you are interested in high-risk return investments, then keep an eye on this IPO starting February 4.
FAQ:
When is Chamunda Electricals IPO launching?
Chamunda Electricals IPO will open on February 4, 2024 and close on February 6, 2024.
What is the price band of Chamunda Electricals IPO?
The price band of Chamunda Electricals IPO has been fixed at ₹47-50 per share.
Chamunda Electricals IPO is being launched to raise how much amount?
The company is planning to raise a total of ₹14.6 crore through this IPO.
What business does Chamunda Electricals work in?
This company is mainly engaged in the field of operation and maintenance of electrical substations and solar power generation.
Where will the funds raised through IPO be used?
Proceeds from the IPO will be used to purchase new testing equipment, meet working capital requirements, and repay debt.
