IRM Energy IPO: Issue oversubscribed 2.24 times on day 2, retail portion subscribed 2.42 times

19 Oct 2023 , 11:33 AM

IRM Energy’s initial public offering (IPO) kicked off on Wednesday and will remain open for subscription until Friday. The company aims to raise Rs 545 crore through this IPO. It’s important to note that the entire offering consists of fresh equity, totaling 1.08 crore shares, and is priced in the range of Rs 480 to Rs 505 per share. To subscribe to the IPO, please click here.

By the end of the first day, the IPO had garnered a subscription rate of 1.72 times, and by 11:05 AM on the second day, it had reached 2.29 times its intended subscription level. The retail portion received bids equivalent to 2.51 times its allocation, while the Non-Institutional Investor (NII) portion reached a subscription level of 3.63 times. The Qualified Institutional Buyer (QIB) portion reached a subscription of 1.07 times. Additionally, the employee portion, which is reserved, received a subscription of 0.57 times.

In terms of allocation, approximately 50% of the offering is earmarked for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Investors are required to bid for a minimum of 29 shares in one lot and in multiples thereof.

IRM Energy specializes in the development of natural gas distribution projects, catering to residential, commercial, industrial, and automotive users within specific geographical areas. The proceeds from the IPO will be utilized for various purposes, including the prepayment or repayment of certain outstanding borrowings, general corporate needs, and funding capital expenditure requirements.