IRM Energy IPO: Strong Retail Subscription in First Two Hours

18 Oct 2023 , 12:05 PM

In the first two hours of its debut on October 18, the IRM Energy IPO witnessed a subscription rate of 0.49 times, with bids received for 37.57 lakh shares out of the total offer size of 76.24 lakh units by 12 pm.

Here’s a breakdown of the subscription by investor category:

– Retail investors bid for 0.75 times their allotted quota.

– High net-worth individuals (HNIs) subscribed to 0.60 times the portion reserved for them.

– The employees’ portion was subscribed to 0.17 times.

– Qualified Institutional Buyers (QIBs) had not subscribed at the time of the report.

IRM Energy’s IPO aims to raise Rs 545.4 crore, and prior to the IPO launch, the company secured Rs 160.35 crore from anchor investors, including notable participants like 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.

The price band for the public offering, which is set to close on October 20, is fixed at Rs 480 to Rs 505 per share. Investors can bid for a minimum of 29 equity shares and in multiples of 29 thereafter. Consequently, the minimum investment for retail investors will be Rs 13,920, while at the upper end, the bidding amount will increase to Rs 14,645.

IRM Energy has earmarked a significant portion of the IPO proceeds for the development of the city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu, with an allocation of Rs 307.26 crore. The company also plans to utilize the funds to repay a debt of Rs 135 crore, with the remaining capital directed toward general corporate purposes.