IRM Energy IPO: Issue fully booked on day 2, check GMP, should you subscribe?

IRM Energy IPO subscription status: IRM Energy IPO has been subscribed 4.37 times on day 2. IRM Energy IPO opened for subscription on Wednesday, October 18, and will close on Friday, October 20. IRM Energy IPO price band has been set in the range of ₹480 to ₹505 per equity share of face value of ₹10.

IRM Energy IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors. A discount of ₹48 per equity share is being offered to eligible employees bidding in the employee reserve portion.

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On day 2, IRM Energy IPO retail investors portion was subscribed 4.36 times, NII portion was subscribed 9.09 times, and Qualified Institutional Buyers (QIB) portion were booked 1.18 times. IRM Energy IPO employee portion was booked 94%.

The first day of bidding for the IRM Energy IPO saw 1.71 times subscriptions, with retail and non-institutional investors leading the way.

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

IRM Energy IPO subscription status

IRM Energy IPO has received bids for 3,32,83,329 shares against 76,24,800 shares on offer, according to data from the BSE.

IRM Energy IPO retail investors' portion received bids for 1,61,62,483 shares against 37,04,400 shares on offer for this segment.

IRM Energy IPO's non-institutional investors' portion received bids for 1,44,22,831 shares against 15,87,600 on offer for this segment.

IRM Energy IPO Qualified Institutional Buyers (QIBs) portion received bids for 24,95,711 shares against 21,16,800 shares on offer for this segment.

Also Read: IRM Energy IPO opens on October 18, price band set at ₹480-505 per share

IRM Energy IPO details

IRM Energy IPO is completely a fresh issue of 10,800,000 equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

The company intends to use the net proceeds from the offering to fund the following goals: prepayment or repayment of all or a portion of certain outstanding borrowings obtained by the company; general corporate purposes; and funding capital expenditure requirements for development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in Fiscal 2024, Fiscal 2025, Fiscal 2026, and Fiscal 2027, according to the Red Herring Prospectus (RHP).

The company's comparable listed peer are Gujarat Gas Ltd (with P/E of 18.69), and Indraprastha Gas Ltd (with P/E of 19.21).

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 is +45. This indicates IRM Energy share price were trading at a premium of ₹45 in the grey market on Thursday, according to investorgain.com.

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 ₹550 apiece, which is 8.91% higher than the IPO price of ₹505.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: IRM Energy IPO: Check GMP today, subscription status, should you subscribe?

IRM Energy IPO Review

The issue has been rated as ‘SUBSCRIBE’ by brokerage houses such as SBI Securities, Nirmal Bang, Anand Rathi, BP Wealth, Hensex Securities, Indsec Securities, Marwari Financial Services, Reliance Securities, and Swastika Investment. The brokerages cite that IRM Energy Ltd, a major player in the distribution of CNG and PNG, has received positive evaluations from brokerages.

The company has been recognised as having attributes that contribute to its growth potential, including its strong track record, varied customer base, strategic acquisitions, and concentration on technology adoption. Furthermore, suggestions to subscribe for the IPO in order to potentially benefit from long-term gains were driven by its consistent financial performance, ecologically friendly fuel choices, and fair valuation in comparison to the industry.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.