IRM Energy IPO: Share Price Debuts At 5.5% Discount

In an eventful debut on the stock exchange, IRM Energy's share price took center stage, opening at a 5.5% discount compared to the issue price. Here's what you need to know about this significant listing.

Listing Day Details

IRM Energy's share price made its market entry with a twist. On NSE, the share price started at ₹477.25 per share, marking a 5.49% drop from issue price of ₹505. Simultaneously, on the BSE, IRM Energy's shares debuted at ₹479 per share.

IPO Overview

The IRM Energy IPO, which opened for subscription from October 18 to October 20, set a price band of ₹480 to ₹505 per equity share with a face value of ₹10.

In the distribution of shares, the IPO allocated up to 50% for Qualified Institutional Buyers, not less than 15% for Non-Institutional Investors, and a minimum of 35% of the offering for Retail Investors. Additionally, eligible employees bidding in the employee reserve portion enjoyed a discount of ₹48 per equity share.

Strong Demand During Subscription

The IRM Energy IPO witnessed robust demand during its subscription period. On the final day, both Qualified Institutional Buyers (QIBs) and non-institutional investors oversubscribed the offering, thanks to an enthusiastic response from retail investors.

Retail subscribers subscribed 9.29 times, while Non-Institutional Investors showed significant interest with a subscription rate of 48.34 times, and Qualified Institutional Buyers demonstrated a strong appetite with 44.73 times oversubscription. The employee portion was oversubscribed by 2.05 times.

Even on the second day of bidding, the IPO was subscribed 4.37 times, and it started off with a bang on the first day, achieving a subscription rate of 1.71 times.

IRM Energy's IPO Details

IRM Energy's IPO consists of 10,800,000 fresh equity shares, with no offer for sale (OFS) component, as stated in the Red Herring Prospectus (RHP). The company's intended use of the net proceeds includes repaying outstanding borrowings, supporting general corporate purposes, and funding capital expenditure for developing the City Gas Distribution network in specific regions of Tamil Nadu over the next few fiscal years.

The key players in managing the IRM Energy IPO are HDFC Bank Ltd and Bob Capital Markets Ltd, with Link Intime India Private Ltd serving as the registrar.

Grey Market Premium (GMP)

The grey market premium (GMP) for IRM Energy's IPO is currently at +18. This indicates that IRM Energy's share price is trading at a premium of ₹18 in the grey market, as reported by investorgain.com. With this premium in mind and considering the upper end of the IPO price band, the estimated listing price for IRM Energy's shares is approximately ₹523 apiece. This value represents a 3.56% increase over the IPO price of ₹505.

'Grey market premium' reflects the willingness of investors to pay more than the issue price for the shares.

Disclaimer
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