IRM Energy IPO Day 1: Know Subscription Status, GMP, Allotment Date; Should You Subscribe?

The initial public offering (IPO) of IRM Energy has opened for subscription today. The IPO of IRM Energy will conclude on October 20, which means that the last day of bidding is Friday. The price band of the issue has been fixed at Rs 480 to Rs 505 per share.

Till the time of writing this offer, the IRM Energy IPO was subscribed 0.31 times with bids for 23.42 lakh shares compared to an offer size of 76.24 lakh units. Retail investors bid 0.47 times the quota reserved for them, while high net-worth individuals (HNIs) bought 0.36 times the portion allotted for them.

IRM Energy is a Gujarat-based city gas distribution company and the company is looking to raise Rs 545.4 crore through this public issue. The price band of the issue has been fixed at Rs 480 to Rs 505 per share. According to IPO Watch IRM Energy IPO GMP today is Rs 70. The IPO of IRM Energy is a pure fresh issue of 1.08 crore shares and there is no offer-for-sale (OFS)component.

Ahead of the IPO launch, the company raised Rs 160.35 crore from anchor investors on October 17. Those who participated in the anchor book include Quant Mutual Fund, DSP Mutual Fund, HDFC Life Insurance Company, SBI General Insurance Company, PNB Metlife India Insurance Company, ITI Mutual Fund, Bank of India Mutual Fund, and Nippon India.

Of the total amount, the company intends to use Rs 307.26 crore for the development of the city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu. The company will also use the proceeds to pay debt amounting to Rs 135 crore and the remaining funds will be used for general corporate purposes.
Investors can place bids for a minimum of 29 equity shares and in multiples of 29 thereafter. Thus, the minimum investment by retail investors will be Rs 13,920. Meanwhile, at the upper price band, the bidding amount will rise to Rs 14,645.

Important Details You Should Know About IRM Energy IPO:

IRM Energy IPO Price Band:

The price band of IRM Energy IPO has been fixed at Rs 480 to Rs 505 per share.

IRM Energy IPO Important Dates:

The offer will open for subscription on October 18 and the last day for bidding is October 20, 2023. IRM Energy is expected to finalize the basis of the allotment of IPO shares by October 27 and transfer equity shares to the demat accounts of eligible investors by October 30. Shares of IRM Energy will likely list on Indian bourses on October 31 in line with the T+6 timeline.

IRM Energy IPO Lot size

Investors can place bids for a minimum of 29 equity shares and in multiples of 29 thereafter. Thus, the minimum investment by retail investors will be Rs 13,920. Meanwhile, at the upper price band, the bidding amount will rise to Rs 14,645.

About the company:

IRM Energy Limited (a group Company of Cadila Pharmaceuticals Ltd.) is an integrated value-driven energy enterprise developing Natural Gas distribution projects across various districts in the country for industrial, commercial, domestic, and automobile customers. The company is committed to contributing to the energy needs of its consumers.

IRM Energy Limited (IRMEL) is a leading City Gas Distribution (CGD) company with an experience of more than 6 years of in developing robust city gas distribution networks and connecting different customer segments in our existing Geographical Areas (GAs) of Banaskantha District in the state of Gujarat, Fatehgarh Sahib in the state of Punjab and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat. As of March 31, 2023, our supply network across all GAs consists of over 3,665 inch-km of pipelines, including approximately 3,000 inch-km of MDPE pipelines, and 665 inch-km of steel pipelines.

IRM Energy's rivals in the market include Gujarat Gas, Indraprastha Gas, Mahanagar Gas, and Adani Total Gas.

IRM Energy Limited IPO GMP today

IRM Energy Limited IPO GMP today is Rs 70 per share. This suggests that IRM Energy shares are trading at a premium of Rs 70 in the grey market today.

Considering the upper end of the IPO price band and the current GMP, IRM Energy was shares are estimated to list at Rs 575 per piece, up 13.86% compared to the IPO price of Rs 505.