Chamunda Electricals IPO is set to open for bidding on 4th February 2025, with the tentative listing date of 11th February 2025. The company is offering a fresh issue of 29,19,000 shares, amounting to Rs 14.60 crore. As an SME IPO, it is attracting investor attention, particularly due to its financial growth, sectoral strength, and potential returns.
The IPO has a face value of Rs 10 per share and a price band set between Rs 47 and Rs 50 per share. Kfin Technologies Limited is handling the IPO allotment and refund process, while GYR Capital Advisors Private Limited is the book-running lead manager for this offering.
This article delves deep into various aspects of Chamunda Electricals IPO, including its financial health, grey market premium (GMP), technical indicators, industry position, risk factors, and the overall investment outlook.
Chamunda Electricals IPO Key Details
| Event | Date / Details |
|---|---|
| IPO Open Date | 4th February 2025 |
| IPO Close Date | 6th February 2025 |
| Allotment Date | 7th February 2025 |
| Refund Initiation | 10th February 2025 |
| Listing Date | 11th February 2025 |
| Issue Size | 29,19,000 shares (Rs 14.60 crore) |
| Face Value | Rs 10 per share |
| Lot Size | 3,000 shares |
| Price Band | Rs 47 – Rs 50 per share |
| Issue Type | Book Built Issue |
| Listing At | NSE & SME |
Chamunda Electricals IPO GMP (Grey Market Premium)
Grey Market Premium (GMP) is an essential factor in IPO analysis, reflecting investor sentiment. The GMP as of 3rd February 2025 is Rs 11 per share, indicating that the estimated listing price would be around Rs 61 per share, representing an expected gain of 22%.
| GMP Date | GMP (Rs) | Estimated Listing Price (Rs) | Estimated Listing Gains (%) |
|---|---|---|---|
| 03-02-2025 | 11 | 61 | 22.00% |
| 02-02-2025 | 11 | 61 | 22.00% |
| 01-02-2025 | 11 | 61 | 22.00% |
| 31-01-2025 | 11 | 61 | 22.00% |
| 30-01-2025 | 11 | 61 | 22.00% |
| 29-01-2025 | 0 | 50 | 0% |
Chamunda Electricals Financial Performance
The company has demonstrated substantial financial growth, increasing its revenue and profitability over recent years.
| Financial Year | Revenue (Rs Cr.) | Profit After Tax (Rs Cr.) | Net Worth (Rs Cr.) |
|---|---|---|---|
| FY 2023-24 | 20.07 | 2.44 | 5.86 |
| FY 2022-23 | 14.01 | 0.31 | 3.43 |
| FY 2021-22 | 11.32 | -0.51 | 3.12 |
The company has posted a revenue growth of 43.25% in FY 2023-24 and an impressive PAT (Profit After Tax) growth of 645.45%. This indicates strong business expansion and improved profitability.
Technical Analysis of Chamunda Electricals IPO
| Indicator | Value |
|---|---|
| PE Ratio | 16.43 |
| PB Ratio | 10.59 |
| EPS (Earnings Per Share) | 3.04 |
| ROE (Return on Equity) | 52.83% |
| ROCE (Return on Capital Employed) | 36.73% |
| Debt-to-Equity Ratio | 0.78 |
| PAT Margin | 12.34% |
| Market Capitalisation | Rs 55.02 crore |
The PE Ratio of 16.43 and EPS of 3.04 indicate strong financial fundamentals. Additionally, the high ROE of 52.83% suggests the company is effectively utilizing shareholder funds.
Chamunda Electricals Industry Comparison
Comparing Chamunda Electricals with other industry players helps assess its market position.
| Company Name | Revenue (Rs Cr.) | PE Ratio | EPS (Rs) | ROE (%) |
|---|---|---|---|---|
| Chamunda Electricals Ltd | 20.07 | 16.59 | 3.01 | 41.79% |
| Bajaj Electricals Ltd | 1,190.00 | 70.96 | 9.34 | 1.94% |
| Finolex Cables Ltd | 1,400 | 44.45 | 45.70 | 14.44% |
| Dixon Technologies Ltd | 4,660.00 | 110.91 | 131.49 | 7.03% |
While Chamunda Electricals is a relatively smaller player, its high ROE and stable PE Ratio make it a strong contender in the SME segment.
Chamunda Electricals IPO Risks
Despite its growth potential, investors should consider the following risks:
- Increased Debt: The company’s borrowings increased from Rs 3.69 crore in FY 2023 to Rs 4.61 crore in FY 2024.
- Low Market Capitalisation: With a market cap of Rs 55.02 crore, the company is a small-cap stock, carrying potential volatility.
- Competitive Industry: The electrical sector is highly competitive, with established players like Bajaj Electricals and Finolex Cables.
Should You Invest in Chamunda Electricals IPO?
Pros:
- Strong revenue and PAT growth.
- High return on equity (52.83%).
- Positive GMP indicating listing gains.
- Scalable business model.
Cons:
- High bidding amount (Rs 1.5 lakh minimum investment).
- Increased debt burden.
- SME IPOs often have lower liquidity post-listing.
Verdict: If you have a high-risk appetite and are looking for short-term gains, Chamunda Electricals IPO could be an attractive opportunity. However, long-term investors should carefully evaluate the company’s growth potential and industry risks.
Conclusion
Chamunda Electricals IPO presents an interesting investment case, particularly for SME investors. With strong financial performance, a competitive business model, and high investor interest, the IPO is expected to perform well on listing. However, potential investors should carefully assess GMP trends, industry risks, and financial stability before making a decision.
For those looking to capitalize on short-term listing gains, the Chamunda Electricals IPO seems promising. However, long-term investors should conduct thorough due diligence and consider market conditions before making a move.
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