IRM Energy's IPO Day 2 Sees Strong Demand, Oversubscribed at 4.36 Times

19 Oct 2023 , 10:50 PM

On the second day of its IPO, IRM Energy sees robust demand, with a subscription rate of 4.36 times. Investors have submitted bids for 3.32 crore shares, surpassing the offering of 76.24 lakh shares. Retail investors lead the way with a subscription rate of 4.36 times, while high net-worth individuals and qualified institutional buyers also show strong interest with 9.08 times and 1.18 times the allotted quota, respectively. Click here to subscribe the IPO.

IRM Energy, a city gas distribution (CGD) company, has set its sights on raising Rs 545.4 crore through this IPO. Prior to the IPO, the company secured Rs 160.35 crore from anchor investors.

The company plans to allocate Rs 307.26 crore from the IPO proceeds for the expansion of its city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu. Additionally, the funds will be used to retire a debt of Rs 135 crore, with the remainder earmarked for general corporate purposes.

The IPO, which commenced on October 18 and concludes on October 20, offers shares in the price range of Rs 480 to Rs 505 per share. Investors are eligible to bid for a minimum of 29 equity shares, and they can increase their bidding in multiples of 29. Consequently, the minimum investment for retail investors starts at Rs 13,920, while at the upper end, the bidding amount increases to Rs 14,645.