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Chamunda Electrical Ltd IPO

Status: Closed

Overview

IPO date
04 Feb 2025 to 06 Feb 2025
Face value
₹ 0 per share
Price
₹ 47 to ₹50 per share
Issue Size
2,919,000 shares
(aggregating up to ₹ 14.6 Cr)
Allotment Date
07 Feb 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Engineering

Objectives of Chamunda Electrical Ltd IPO

Initial public offer of upto 29,19,000 equity shares of face value of Rs.10/- each ("equity shares") of Chamunda Electrical Limited (the "Company" or "cel" or "issuer") at an issue price of Rs. 50 per equity share (including a share premium of Rs. 40 per equity share) for cash, aggregating up to Rs. 14.60 crores ("public issue") out of which 1,65,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 50 per equity share for cash, aggregating Rs. 0.83 crores will be reserved for subscription by the market maker to the issue (the "market maker reservation portion"). the public issue less market maker reservation portion i.e. issue of 27,54,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 50 per equity share for cash, aggregating up to Rs. 13.77 crores is hereinafter referred to as the "net issue". The public issue and net issue will constitute 26.53% and 25.03% respectively of the post-issue paid-up equity share capital of the company. Price Band: Rs. 50 per equity share of face value of Rs. 10 each. The Floor price is 5 times the face value of the equity shares respectively. Bids can be made for a minimum of 3000 equity shares and in multiple of 3000 equity shares thereafter.

Chamunda Electrical Ltd IPO Strategy

  • Enhancing our service portfolio by expanding our focus on EHV (Extra High Voltage) Erection, Testing and Commissioning.
  • Acquiring of advanced equipments for the setup of NABL-certified lab which enable us to bag more work orders with sustainable profit margins.
  • Expansion of our geographical footprint and diversify our customer base.
  • Enhance operational controls to achieve optimal utilization of resources.

About Chamunda Electrical Ltd

Chamunda Electrical Limited was incorporated on June 25, 2013 as 'Chamunda Electrical Private Limited', a Private Limited Company pursuant to a Certificate of Incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Subsequently, the status of the Company was converted into a Public Limited Company and the name was changed to 'Chamunda Electrical Limited' dated August 21, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is engaged in the business of providing specialized services of operation and maintenance of substation up to 66 KV (kilovolt), testing and commissioning of electrical substation up to 220 KV and solar power generation park of 1.5 MW capacity, and within scope, further includes erection of EHV class equipments, structures and equipments, earthing, control cable works and other associated works for substations up to 220 KV for the D Class. Apart from this, the Company has built a robust reputation in the power sector. With a deep specialization in EHV (Extra High Voltage) class equipments, the Company executed complex Erection, Testing and Commissioning projects for substations. Beyond the original setup, it has demonstrated proficiency in substation Operation and Maintenance (O&M). The Company is planning an Initial Public Offer upto 35,00,000 of Fresh Issue Equity Shares.

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Strengths vs Risks of Chamunda Electrical Ltd

Know the pros & cons

Strengths

  • arrowGood relationship with the contract farmers and other vendors ensuring availability of raw materials during off-season period.
  • arrowSupport of efficient supply-chain enable us to have long standing and deep customer relationships.
  • arrowQuality assurance and quality control of our products and as a result we received various awards and accreditations.
  • arrowAdvanced in-house processing facilities with focus on cost competitiveness.
  • arrowComprehensive product portfolio enables us to serve our customers spread across the globe.
  • arrowDemonstrated history of financial performance and a scalable business model.
  • arrowExperienced promoter and management team.

Risks

  • arrowThe company derives significant portion of its revenue from Operation, Maintenance, Testing and Commissioning of Electrical Sub-stations activity as accounted for 85.45%, 96.38%, 92.78%, and 97.22% of its revenue from operations in the period ended December 31, 2024, Fiscal 2024, 2023 and 2022 respectively. An inability to anticipate and adapt to evolving customer preferences and demand for particular project, or ensure project quality may adversely impact its business, results of operations, financial condition and cash flows.
  • arrowIts top ten customers contribute 100% of the company revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
  • arrowIts revenues largely depended on acceptance of the bids submitted to the Government and other agencies. The company performance could be affected in case majority of the bids are not accepted / awarded.
  • arrowThe company is majorly engaged in Operation, Maintenance, Testing and Commissioning of Electrical Substations activity which is working capital intensive.
  • arrowThe company requires certain approvals, licenses, registration and permits for its business, and the failures to obtain or renew them in a timely manner may adversely affect the company operations.
  • arrowThe company failures to perform in accordance with the standards prescribed in work order of its client could result in loss of business or payment of liquidated damages and any delay in the schedule of its under operation & maintenance projects may be subject to cost overruns and can impact the company reputation and future projects.
  • arrowThe company is highly dependent on its management team and certain management personnel, any loss of such team members or the inability to attract or retain research and development personnel may materially adversely affect its business performance and research and development efforts.
  • arrowIts top ten customers contribute 100% of the company revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
  • arrowIts revenues are highly dependent on the company operations in geographical region of State of Gujarat. Any adverse development affecting its operations in this region could have an adverse impact on the company business, financial condition and results of operations.
  • arrowIts top customer contributes majority of the company revenues from operations. Any loss of business from them may adversely affect its revenues and profitability.
  • arrowIts may not be selected for projects the company bid for in the future or those projects that its will bid upon in the future, if selected, may not be finalised within the expected time frame or on expected terms.
  • arrowIts individual Promoters and Executive Director plays key role in the company functioning and its heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that its Promoter and Executive Directors remain associated with it. The company success also depends upon the services of its key managerial personnel and the company ability to attract and retain key managerial personnel and its inability to attract them may affect the company operations.
  • arrowIts business is manpower intensive and any unavailability of the company employees or shortage of Contractual labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing Contract labour may have an adverse impact on its cash flows and results of operations.
  • arrowIts ability to attract, train and retain executives and other qualified employees is critical to the company's business, results of operations and future growth.
  • arrowIts Registered Office and branch office from where the company operates are not owned by it.
  • arrowAny slowdown or work stoppages at its project sites may have effect on the company's business, financial condition and results of operations.
  • arrowThe requirement of funds in relation to the objects of the Issue has not been appraised.
  • arrowThere are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
  • arrowThe Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
  • arrowAny non-compliance or delays in GST Return Filings and EPF Payments may expose it to penalties from the regulators.
  • arrowIts may be unable to grow the company business in international markets, which may adversely affect its business prospects and results of operations.
  • arrowThe company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
  • arrowThe Company has applied for registration of the trademarks in its name. Until such registration is granted, its may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of its goodwill.
  • arrowThe company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
  • arrowThe company requires certain approvals, licenses, registration and permits for its business, and the failures to obtain or renew them in a timely manner may adversely affect the company operations.
  • arrowIts Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
  • arrowNone of the Directors of the Company have experience of being a director of a public listed company.
  • arrowThe average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.
  • arrowThe requirement of funds in relation to the objects of the Issue has not been appraised.
  • arrowThe deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".
  • arrowIts funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.
  • arrowNon-compliance with amendment in Safety and Health laws and other applicable regulations, may adversely affect the Company's results of operations and its financial condition.
  • arrowThe requirements of being a public listed company may strain its resources and impose additional requirements.
  • arrowThe company insurance coverage may not be adequate to protect it against all potential losses to which the company may be subject and this may have a material effect on its business and financial condition.
  • arrowThe company has not independently verified certain data in this Red Herring Prospectus.
  • arrowThe company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
  • arrowThe company is susceptible to risks relating to unionization of its employees employed by the company.
  • arrowAny future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
  • arrowIts inability to effectively implement the company business and growth strategy may have an adverse effect on its operation and growth.
  • arrowIn the event there is any delay in the completion of the Offer, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this offer which would in turn affect its revenues and results of operations.
  • arrowThere are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
  • arrowThere is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the Emerge Platform of National Stock Exchange of India Limited in a timely manner, or at all.
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The IPO opens on 04 Feb 2025 & closes on 06 Feb 2025.

Chamunda Electrical Limited was incorporated on June 25, 2013 as 'Chamunda Electrical Private Limited', a Private Limited Company pursuant to a Certificate of Incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Subsequently, the status of the Company was converted into a Public Limited Company and the name was changed to 'Chamunda Electrical Limited' dated August 21, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is engaged in the business of providing specialized services of operation and maintenance of substation up to 66 KV (kilovolt), testing and commissioning of electrical substation up to 220 KV and solar power generation park of 1.5 MW capacity, and within scope, further includes erection of EHV class equipments, structures and equipments, earthing, control cable works and other associated works for substations up to 220 KV for the D Class. Apart from this, the Company has built a robust reputation in the power sector. With a deep specialization in EHV (Extra High Voltage) class equipments, the Company executed complex Erection, Testing and Commissioning projects for substations. Beyond the original setup, it has demonstrated proficiency in substation Operation and Maintenance (O&M). The Company is planning an Initial Public Offer upto 35,00,000 of Fresh Issue Equity Shares.

Chamunda Electrical Ltd IPO will close on 06 Feb 2025.

  • Good relationship with the contract farmers and other vendors ensuring availability of raw materials during off-season period.
  • Support of efficient supply-chain enable us to have long standing and deep customer relationships.
  • Quality assurance and quality control of our products and as a result we received various awards and accreditations.
  • Advanced in-house processing facilities with focus on cost competitiveness.
  • Comprehensive product portfolio enables us to serve our customers spread across the globe.
  • Demonstrated history of financial performance and a scalable business model.
  • Experienced promoter and management team.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Chiragkumar Natvarlal Patel 4288944 53.04 4288944 38.97
2 Natvarbhai K Rathod 1736460 21.48 1736460 15.78
3 Purnikaben C Patel 694980 8.6 694980 6.32
4 Shantaben N Rathod 1078144 13.33 1078144 9.8
5 Zeel C Patel 52033 0.64 52033 0.47
6 Babubhai Karsanbhai Patel 30000 0.37 30000 0.27

  • The company derives significant portion of its revenue from Operation, Maintenance, Testing and Commissioning of Electrical Sub-stations activity as accounted for 85.45%, 96.38%, 92.78%, and 97.22% of its revenue from operations in the period ended December 31, 2024, Fiscal 2024, 2023 and 2022 respectively. An inability to anticipate and adapt to evolving customer preferences and demand for particular project, or ensure project quality may adversely impact its business, results of operations, financial condition and cash flows.
  • Its top ten customers contribute 100% of the company revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
  • Its revenues largely depended on acceptance of the bids submitted to the Government and other agencies. The company performance could be affected in case majority of the bids are not accepted / awarded.
  • The company is majorly engaged in Operation, Maintenance, Testing and Commissioning of Electrical Substations activity which is working capital intensive.
  • The company requires certain approvals, licenses, registration and permits for its business, and the failures to obtain or renew them in a timely manner may adversely affect the company operations.
  • The company failures to perform in accordance with the standards prescribed in work order of its client could result in loss of business or payment of liquidated damages and any delay in the schedule of its under operation & maintenance projects may be subject to cost overruns and can impact the company reputation and future projects.
  • The company is highly dependent on its management team and certain management personnel, any loss of such team members or the inability to attract or retain research and development personnel may materially adversely affect its business performance and research and development efforts.
  • Its top ten customers contribute 100% of the company revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
  • Its revenues are highly dependent on the company operations in geographical region of State of Gujarat. Any adverse development affecting its operations in this region could have an adverse impact on the company business, financial condition and results of operations.
  • Its top customer contributes majority of the company revenues from operations. Any loss of business from them may adversely affect its revenues and profitability.
  • Its may not be selected for projects the company bid for in the future or those projects that its will bid upon in the future, if selected, may not be finalised within the expected time frame or on expected terms.
  • Its individual Promoters and Executive Director plays key role in the company functioning and its heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that its Promoter and Executive Directors remain associated with it. The company success also depends upon the services of its key managerial personnel and the company ability to attract and retain key managerial personnel and its inability to attract them may affect the company operations.
  • Its business is manpower intensive and any unavailability of the company employees or shortage of Contractual labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing Contract labour may have an adverse impact on its cash flows and results of operations.
  • Its ability to attract, train and retain executives and other qualified employees is critical to the company's business, results of operations and future growth.
  • Its Registered Office and branch office from where the company operates are not owned by it.
  • Any slowdown or work stoppages at its project sites may have effect on the company's business, financial condition and results of operations.
  • The requirement of funds in relation to the objects of the Issue has not been appraised.
  • There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
  • The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
  • Any non-compliance or delays in GST Return Filings and EPF Payments may expose it to penalties from the regulators.
  • Its may be unable to grow the company business in international markets, which may adversely affect its business prospects and results of operations.
  • The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
  • The Company has applied for registration of the trademarks in its name. Until such registration is granted, its may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of its goodwill.
  • The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
  • The company requires certain approvals, licenses, registration and permits for its business, and the failures to obtain or renew them in a timely manner may adversely affect the company operations.
  • Its Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
  • None of the Directors of the Company have experience of being a director of a public listed company.
  • The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.
  • The requirement of funds in relation to the objects of the Issue has not been appraised.
  • The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".
  • Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.
  • Non-compliance with amendment in Safety and Health laws and other applicable regulations, may adversely affect the Company's results of operations and its financial condition.
  • The requirements of being a public listed company may strain its resources and impose additional requirements.
  • The company insurance coverage may not be adequate to protect it against all potential losses to which the company may be subject and this may have a material effect on its business and financial condition.
  • The company has not independently verified certain data in this Red Herring Prospectus.
  • The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
  • The company is susceptible to risks relating to unionization of its employees employed by the company.
  • Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
  • Its inability to effectively implement the company business and growth strategy may have an adverse effect on its operation and growth.
  • In the event there is any delay in the completion of the Offer, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this offer which would in turn affect its revenues and results of operations.
  • There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
  • There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the Emerge Platform of National Stock Exchange of India Limited in a timely manner, or at all.

The Issue type of Chamunda Electrical Ltd is Book Building - SME.

The minimum application for shares of Chamunda Electrical Ltd is 3000.

The total shares issue of Chamunda Electrical Ltd is 2919000.

Initial public offer of upto 29,19,000 equity shares of face value of Rs.10/- each ("equity shares") of Chamunda Electrical Limited (the "Company" or "cel" or "issuer") at an issue price of Rs. 50 per equity share (including a share premium of Rs. 40 per equity share) for cash, aggregating up to Rs. 14.60 crores ("public issue") out of which 1,65,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 50 per equity share for cash, aggregating Rs. 0.83 crores will be reserved for subscription by the market maker to the issue (the "market maker reservation portion"). the public issue less market maker reservation portion i.e. issue of 27,54,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 50 per equity share for cash, aggregating up to Rs. 13.77 crores is hereinafter referred to as the "net issue". The public issue and net issue will constitute 26.53% and 25.03% respectively of the post-issue paid-up equity share capital of the company. Price Band: Rs. 50 per equity share of face value of Rs. 10 each. The Floor price is 5 times the face value of the equity shares respectively. Bids can be made for a minimum of 3000 equity shares and in multiple of 3000 equity shares thereafter.