Mumbai (Maharashtra) [India], February 3: Palanpur-based Chamunda Electrical Limited (“The Company”) is in the business of specialized services of operation and maintenance of substation up to 66 KV (Kilovolt), testing and commissioning of electrical substation up to 220 KV (Kilovolt) and solar power generation park of 1.5 MW (Megawatts), have raised ₹ 411.00 Lakhs ahead of its Initial Public Offering (IPO). The company has informed NSE that it allocated 8,22,000 equity shares at ₹ 50 per share on February 03, 2025, to anchor investors.
3 (Three) Anchors participated in the anchor portion viz. Paradise Moon Investment Fund I, SMC India Opportunities Fund and Vikasa India Eif I Fund – Incube Global Opportunities.
About the IPO
Price Band: ₹ 47 – ₹ 50 per equity share (Face Value: ₹10/- each)
Issue Size: ₹ 1459.50 Lakhs (upper price band)
Bid/Offer Opening Date: Monday, February 04, 2025
Bid/Offer Closing Date: Thursday, February 06, 2025
Lot Size: 3,000 Equity Shares
QIB Anchor Quota: 8,22,000 Equity Shares
Net QIB Quota: 5,52,000 Equity Shares
NII Quota: 4,14,000 Equity Shares
Retail Quota: 9,66,000 Equity Shares
Market Maker Portion: 1,65,000 Equity Shares
The company aims raise nearly ₹ 1459.50 Lakhs (upper price band) through the SME IPO and list the shares on NSE Emerge platform. The issue proceeds will be utilized for Capital Expenditure where Company will be purchasing new testing kits and equipment’s for “National Accreditation Board for Testing and Calibration Laboratories (NABL)” lab at their Surat branch office, funding of working capital requirements and repayment of term loans and cash credit and rest for general corporate purposes.
Company offers specialized services of operation and maintenance of substation up to 66 KV (kilovolt), testing and commissioning of electrical sub-station up to 220 KV (Kilovolt) and solar power generation parks of 1.5 MW(Megawatts) and within their scope, errection of Extra High Voltage (EHV) class equipment’s, structures and equipment’s, earthing control cable works and other associated works for substations up to 220 KV(Kilovolt) (D Class).
Looking at the potential growth of renewable energy specifically the solar energy, company have set-up a solar-power generation park at Banaskhantha, Gujarat which has a capacity of 1.5 MW (Megawatts) in which Company have signed a 25-year Purchase Power Agreement with Uttar Gujarat Vij Company Limited (UGVCL).
Company has built a good reputation over more than a decade of delivering excellence in the power sector and with a deep expertise and specialization in EHV (Extra High Voltage) class equipment’s, the company has successfully executed complex Erection, Testing and Commissioning projects for substations. Company has demonstrated proficiency in substation ‘s Operation & Maintenance (O&M). This ensures sustained performance, reliability and efficiency of critical infrastructure, further solidifying the company’s role as a trusted partner in the power sector.
Chamunda Electrical Limited seeks to leverage its industry expertise and market positioning to capitalize on future growth opportunities in India’s electrical and infrastructure sector. As a result of these qualitative factors, Company has been awarded contracts in Operation and Maintenance worth of ₹ 6436.70 Lakhs.
Chamunda Electrical cloaked a net profit of ₹ 243.63 Lakhs in the fiscal year 2024 as compared to a net profit of ₹ 31.21 lakhsin fiscal year 2023. Revenue from operations had increased by 43.04% from ₹ 1394.24 Lakhs in FY 23 to ₹ 1994.93 Lakhs in FY 24, primarily due to an increase in number of O&M services of sub-stations. Also, in the period ended December 31, 2024, Revenue from Operations was ₹ 1829.02 Lakhs and net profit of ₹ 281.48 Lakhs translating a PAT margin of 15.67%. This significant increase in net profit suggests that the company has become much more efficient in managing costs, improving profit margins and scaling its operations.
Company’s financial efficiency and prudent management can be seen for the period ended December 31, 2024, with a Debt-Equity ratio of 0.27 with a Debt-Service Coverage ratio is 1.54 with a current ratio of 1.81 and RoE & RoCE 33.52% and 30.62% respectively.
Issue Management
Book Running Lead Manager: GYR Capital Advisors Private Limited
Registrar to the Issue: KFIN Technologies Limited
