IRM Energy IPO GMP today, subscription status

The initial public offering (IPO) for the city gas distribution company IRM Energy is open until Friday, October 20, with a price band set between ₹480 and ₹505 per equity share. This IPO exclusively involves a fresh issue of 1.08 crore equity shares, each with a face value of ₹10, and does not include an offer for sale (OFS) component. At the upper end of the price range, IRM Energy aims to raise ₹545.40 crore from the public issue.

IRM Energy IPO

Cadila Pharmaceuticals Limited, Dr. Rajiv Indravadan Modi, and IRM Trust are the promoters of the company. The lot size for IRM Energy IPO is 29 equity shares, with multiples of 29 thereafter. Retail investors need a minimum investment of ₹14,645. Anchor investors contributed ₹160.35 crore on October 17, a day before the IPO opened for subscription. Between the financial years ending on March 31, 2023, and March 31, 2022, IRM Energy Ltd. experienced a 90.3% increase in revenue and a 50.69% decrease in profit after tax (PAT). Proceeds from the IPO will be directed towards prepayment or repayment of certain outstanding borrowings, general corporate purposes, and funding capital expenditure requirements.

The basis of allotment for IRM Energy IPO shares will be finalized on Friday, October 27. Refunds will be initiated on the same day, and shares will be credited to allottees’ demat accounts on Monday, October 30. The anticipated listing of IRM Energy IPO shares is on BSE and NSE on Tuesday, October 31. Any adjustments to the dates, including a potential shift to the T+3 norm, will be communicated by the company. HDFC Bank Ltd and Bob Capital Markets Ltd serve as the book running lead managers for the IPO, with Link Intime India Private Ltd acting as the registrar.

The Grey Market Premium (GMP) for the IRM Energy Limited IPO today is recorded at ₹70 per share, indicating a trading premium of ₹70 in the grey market on Wednesday, according to reports from market observers. Considering the upper end of the IPO price band and the existing premium in the grey market, the anticipated listing price for IRM Energy shares is suggested to be ₹575 per share. This projection reflects a 13.86% increase over the IPO price of ₹505. As of the most recent data available at 10:30 a.m., the IRM Energy IPO has garnered a total subscription of 19%. Bids have been placed for 14.67 lakh equity shares out of the 76.24 lakh shares on offer, based on NSE data.

Subscription rates indicate 30% in the retail category, and 21% in the Non-Institutional Investors’ (NII) category, with the Qualified Institutional Buyers (QIBs) yet to participate in the bidding. IRM Energy’s key Geographical Area (GA) is viewed as lucrative and underpenetrated, with an expected robust volume growth reaching 1.51 mmscmd from the current FY23 volume of 0.54 mmscmd. Reliance Securities highlights that the government’s emphasis on transitioning to a gas-based economy, developing the natural gas grid connecting 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 contribute to maintaining the structural integrity of the story.