IRM Energy IPO: Check GMP today, subscription status, should you subscribe?
- IRM Energy IPO is completely a fresh issue of 1.08 crore equity shares of face value of ₹10 each and there is no offer for sale (OFS) component. At the upper end of the price band, the company plans to raise ₹545.40 crore from the public issue.
IRM Energy IPO: The initial public offering (IPO) city gas distribution company IRM Energy IPO opens for subscription today, October 18.
IRM Energy develops natural gas distribution projects for residential, commercial, industrial and automotive users within the designated geographic areas.
IRM Energy IPO will remain open till Friday, October 20. The IPO price band has been fixed in the range of ₹480 to ₹505 per equity share.
IRM Energy IPO is completely a fresh issue of 1.08 crore equity shares of face value of ₹10 each and there is no offer for sale (OFS) component. At the upper end of the price band, the company plans to raise ₹545.40 crore from the public issue.
The company's promoters are Cadila Pharmaceuticals Limited, Dr. Rajiv Indravadan Modi, and IRM Trust.
IRM Energy IPO lot size is 29 equity shares and in multiples of 29 equity shares thereafter. The minimum investment amount required by retail investors is ₹14,645.
The company already raised ₹160.35 crore from anchor investors on October 17, a day ahead of its IPO subscription opening for bidding.
Between the financial year ending on March 31, 2023, and March 31, 2022, IRM Energy Ltd. witnessed a 90.3% increase in revenue and a 50.69% drop in profit after tax (PAT).
The company intends to use the net proceeds from the offering to fund the following goals: prepayment or repayment of certain outstanding borrowings, general corporate purposes and funding capital expenditure requirements.
IRM Energy IPO basis of allotment of shares will be finalised on Friday, October 27 and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Monday, October 30. IRM Energy IPO shares are likely to be listed on BSE and NSE on Tuesday, October 31. If in case, the company decides to switch to T+3 norm, the dates will get preponed.
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The book running lead managers of the IRM Energy IPO are HDFC Bank Ltd and Bob Capital Markets Ltd, and the registrar is Link Intime India Private Ltd.
IRM Energy IPO GMP today
IRM Energy Limited IPO GMP today, or grey market premium today, is ₹70 per share. This indicates IRM Energy shares were trading at a premium of ₹70 in the grey market on Wednesday, as per market observers.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of IRM Energy share price was indicated at ₹575 apiece, which is 13.86% higher than the IPO price of ₹505.
IRM Energy IPO Subscription Status
IRM Energy IPO has been subscribed 73% so far in total as the public issue received bids for 55.71 lakh equity shares as against 76.24 lakh shares on the offer, as per data available on NSE at 1:15 pm.
The public issue was subscribed 1.04 times in the retail category, and 1.05 times in the Non-Institutional Investors’ (NII) category so far. The Qualified Institutional Buyers are yet to bid for the issue.
IRM Energy IPO Review
IRM key GA is lucrative and underpenetrated with strong volume growth expected to reach 1.51 mmscmd from the current FY23 volume of 0.54 mmscmd. The government’s focus on transition to a gas-based economy, development of the natural gas grid connecting the major demand and supply centers in India and increasing the natural gas share in the energy mix to 15% by FY2030 from 6.3% in FY23 will keep the structural story intact, as per Reliance Securities.
IRM’s diverse customer portfolio and distribution network of CNG and PNG and strong relationships through collaborative efforts to a diverse customer base including industrial, commercial and domestic customers ensures efficient and optimal business mix going ahead. The consistent growth in volumes of its key GA, new business from Tamil Nadu which is a key market going forward, we recommend a Subscribe to the issue for the long term, it added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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