IRM Energy IPO Day 3: Check GMP, subscription status, should you subscribe? | Mint
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Business News/ Markets / Ipo/  IRM Energy IPO Day 3: Check GMP, subscription status, should you subscribe?
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IRM Energy IPO Day 3: Check GMP, subscription status, should you subscribe?

IRM Energy IPO opened on October 18 and the allotment is expected to be finalized on Friday, October 27, 2023. The issue has received decent response from investors so far.

IRM Energy IPO price band has been fixed in the range of ₹480 to ₹505 per equity share. (Photo: Company Website)Premium
IRM Energy IPO price band has been fixed in the range of 480 to 505 per equity share. (Photo: Company Website)

IRM Energy IPO: The initial public offering (IPO) city gas distribution company IRM Energy Ltd closes for subscription today, October 20.

IRM Energy IPO opened on October 18 and the allotment is expected to be finalized on Friday, October 27, 2023. The issue has received decent response from investors so far.

Let us check IRM Energy IPO subscription status, GMP today and other key details:

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 Friday, 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 23.59 times so far on Friday, the third and the last day of the bidding process. The public issue received bids for 17.98 crore equity shares as against 76.24 lakh shares on the offer, as per data available on NSE at 3:30 pm.

The public issue was subscribed 8.73 times in the retail category, and 47.15 times in the Non-Institutional Investors’ (NII) category so far. The Qualified Institutional Buyers’ portion was booked 34.13 times and the employee portion was booked 1.93 times so far.

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IRM Energy IPO Review

IRM Energy Ltd commenced its operations in 2015 and has delivered a strong performance throughout its journey. Company has delivered revenue growth at 88% CAGR between FY20-23 with 63% volume growth and other listed industry players have delivered volume growth of an average rate of ~3-4% in FY20-23. 

“We are positive on company’s multifold growth compared to other players, as it is aiming to grow its volume by 3x over the next four years such as from 0.54 MMSCMD in FY23 to 1.51 MMSCMD in FY27E, on account of various opportunities available to drive the demand at its existing GAs. The issue is valued at 19.3x PE based on its annualized Q1FY24 EPS which is at a reasonable valuation compared to average PE Valuation of 18.6x for listed peers," brokerage firm Nirmal Bang said. 

It recommend ‘Subscribe’ to the issue considering its robust future growth.

Also Read: IRM Energy IPO: GMP, issue details, 10 key things to know

IRM Energy IPO Details

The 545.40-crore 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. IRM Energy IPO price band has been fixed in the range of 480 to 505 per equity share.

The IPO lot size is 29 equity shares and the minimum investment amount required by retail investors is 14,645.

IRM 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.

The company already raised 160.35 crore from anchor investors on October 17, a day ahead of its IPO subscription opening for bidding.

Also Read: IRM Energy IPO: Firm mobilises 160 crore from anchor investors ahead of issue

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. 

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.

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 develops natural gas distribution projects for residential, commercial, industrial and automotive users within the designated geographic areas.

The company's promoters are Cadila Pharmaceuticals Limited, Dr. Rajiv Indravadan Modi, and IRM Trust.

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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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Published: 20 Oct 2023, 08:19 AM IST
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