IRM Energy IPO: Should You Subscribe?, Issue Fully Booked on Day Two

 IRM Energy IPO: Should You Subscribe?, Issue Fully Booked on Day Two

IRM Energy IPO subscription status: As of day 2, IRM Energy IPO has received 2.98 subscriptions. The subscription period for the IRM Energy IPO began on October 18 and ends on October 20. The price range for the IRM Energy first public offering has been established at between 480 and 505 per equity share with a face value of 10.

In the public offering, IRM Energy IPO has set aside a maximum of 50% of the shares for qualified institutional buyers (QIB), a minimum of 15% for non-institutional investors (NII), and a minimum of 35% for retail investors. The employee reserve component is accepting bids from qualified workers at a discount of 48 per equity share.

The retail investor component of the IRM Energy IPO was subscribed 3.25 times, the NII portion was subscribed 5.15 times, and the QIB portion was booked 1.08 times on day 2. The employee part of the IRM Energy IPO was 74% booked.

Retail and non-institutional investors led the 1.71 times subscriptions on the opening day of the IRM Energy IPO's public offering.

IPO subscription status for IRM Energy

BSE data shows that as of 13:36 IST, bids for 2,26,88,295 shares outnumbered the 76,24,800 shares that were being offered in the IRM Energy IPO.

In contrast to the 37,04,400 shares that were up for bid for the retail investors' sector of the IRM Energy IPO, 1,20,52,922 shares were offered.

In contrast to the 15,87,600 shares that were on offer for non-institutional investors in the IRM Energy IPO, bids for 81,82,698 shares were submitted.

In contrast to the 21,16,800 shares that were on offer for the IRM Energy IPO Qualified Institutional Buyers (QIBs) component, bids for 22,93,117 shares were received.

IRM Energy IPO information

According to the Red Herring Prospectus (RHP), the IRM Energy IPO is a wholly new offering of 10,800,000 equity shares; there is no offer for sale (OFS) component.

According to the Red Herring, the company plans to use the net proceeds from the offering to finance the following objectives: general corporate purposes; prepayment or repayment of either the whole or part of certain outstanding borrowings that were acquired by the company; and supplying the capital expenditure requirements for building the City Gas Distribution network in the Geographical The regions of Namakkal and Tiruchirappalli (Tamil Nadu) in Budgeting. 2024, Fiscal 2025, Fiscal 2026, and Fiscal 2027.

The company's similar listed competitors are Gujarat Gas Ltd and Indraprastha Gas Ltd, both of which have P/E ratios of 18.69 and 19.21, respectively.

Link Intime India Private Ltd. is the registrar, while HDFC Bank Ltd. and Bob the Capital Markets division Ltd. are the book running lead managers of the IRM Energy IPO.

Today's IRM Energy IPO GMP

The current gray market premium for IRM Energy Limited's IPO is +45. According to investorgain.com, this means the share price of IRM Energy was selling at a 45 percent premium on Thursday on the black market.

The expected listing price of IRM Energy shares was stated at 550 per share, which is 8.91% more expensive than the IPO price of 505, when taking into account the top end of the IPO pricing range and the existing premium on the grey market.

Investors' willingness to pay more than the issue price is indicated by the term "grey market premium."

IPO Review of IRM Energy

Brokerage firms like SBI Securities, Nirmal Bang, Anand Rathi, BP Wealth, Hensex Securities, Indsec Securities, Marwari Financial Services, Reliance Securities, and Swastika Investment have rated the issue as "SUBSCRIBE." The brokerages state that they have given IRM Energy Ltd, a significant participant in the distribution of CNG and PNG, favorable reviews.

The firm's proven track record, diverse client base, smart acquisitions, and emphasis on technology adoption have all been acknowledged as factors that contribute to its development potential. Furthermore, the IPO's stable financial success, eco-friendly fuel options, and reasonable price in contrast to the sector were cited as reasons to subscribe in order to possibly reap long-term advantages.