Chamunda Electricals Lists at 40% Premium on NSE SME Post Strong Subscription, Takes Profit Booking

Chamunda Electricals Limited, a specialized electrical substation operations and maintenance service provider operating since 2013, made a strong entry into the public markets on Tuesday, February 11, 2025. The company, which provides services for substations up to 220 KV and solar power generation, commenced trading on NSE SME with a significant premium despite seeing some profit booking during the session.

Chamunda Electricals Listing Details 

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The company's market debut presented a strong correlation between primary market enthusiasm and secondary market valuation:

• Listing Time & Price: When trading commenced at market open, Chamunda Electricals shares debuted at ₹70 on NSE SME, showing a substantial premium of 40% against the issue price of ₹50. This strong opening was supported by the IPO's massive oversubscription of 737.97 times.
• Issue Price Context: The company had fixed the IPO price at ₹50 per share. The market's initial response validated this pricing given the company's growth trajectory and sector dynamics.
• Price Evolution: By 10:54 AM IST, the stock experienced some profit booking, trading at ₹66.50 after hitting an intraday high of ₹71.00, though still maintaining a healthy gain of 33% from the issue price.

First-Day Trading Performance of Chamunda Electricals 

The trading activity showed active participation with mixed sentiment:

• Volume and Value: Within the first few hours, trading volume reached 11.64 lakh shares, generating a turnover of ₹8.12 crore, with 100% of traded quantity marked for delivery.
• Demand Dynamics: The stock's trading pattern showed sell orders for 4,20,000 shares, indicating some profit booking at higher levels.

Market Sentiment and Analysis

• Market Reaction: Strong opening followed by profit booking
• Subscription Rate: The IPO had been massively oversubscribed by 737.97 times
• Pre-listing Interest: Anchor investors had invested ₹4.11 crore before the public issue

Growth Drivers and Challenges 

Expected drivers of future performance:

• Decade-long industry experience
• Strong execution capabilities
• Advanced equipment infrastructure
• Skilled workforce
• Scalable business model
• Strong order book

Potential challenges:

• Competitive market dynamics
• Working capital requirements
• Project execution risks
• Regulatory compliance costs
• Dependence on government projects
• Sector cyclicality

Utilisation of IPO Proceeds 

The ₹14.60 crore raised through fresh issue will be used for:

• Purchase of new testing kit and equipment
• Working capital requirements
• Repayment of term loans and cash credit
• General corporate purposes
• Issue expenses
   

Financial Performance 

The company has shown consistent growth:

• Revenue of ₹20.07 crore in FY2024
• 9M FY2025 (ended December 2024) showed revenue of ₹18.43 crore with PAT of ₹2.81 crore
• Net Worth of ₹10.93 crore as of December 2024
• Total borrowings of ₹2.92 crore
• Total assets of ₹18.06 crore as of December 2024

As Chamunda Electricals begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and profitability. The strong listing premium reflects investors' confidence in the company's business model and growth prospects. The company's ability to execute its order book efficiently while managing costs will be crucial for sustaining investor confidence and supporting long-term value creation.