IRM Energy Ltd will mobilize Rs 518.4 crore and Rs 545.4 crore at the lower and upper end of the price range.
IRM Energy IPO: The public offering of IRM Energy opens for subscription on October 18; Should you invest?
IRM Energy IPO: IRM Energy’s public issue opens for subscription on October 18. The company is looking to raise Rs 545.4 crore through the offer. The offering opens to anchor investors on October 17.
IRM Energy IPO: Dates
The offer opens for registration on October 18 and closes on October 20, 2023.
IRM Energy IPO: Price Range
The Gujarat-based city gas distribution company has set the price range at Rs 480-505 per share.
IRM Energy IPO: Offer Details
IRM Energy plans to raise Rs 545.4 crore through the IPO, which is a purely fresh issue of 1.08 crore shares and there is no offer-for-sale component.
IRM Energy IPO: Objectives
IRM Energy plans to spend Rs 307.26 crore on developing the city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu. The company will also use the proceeds to pay off debts of Rs 135 crore and the remaining funds will be used for general corporate purposes.
IRM Energy IPO: Lot size
Investors can bid for a minimum of 29 shares and thereafter in multiples of 29. Therefore, the minimum investment by retail investors will be Rs 13,920. At the top end, the bid amount will increase to Rs 14,645.
IRM Energy IPO: company profile
IRM Energy operates in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat) and Namakkal and Tiruchirappalli in Tamil Nadu. The company distributes CNG for use in motor vehicles and PNG for use by domestic households and for commercial and industrial units.
IRM Energy IPO date and allotment details
For now, IRM Energy’s IPO basis for allotment of shares will be finalized on Friday, October 27 and the company will initiate redemptions on the same day, while the shares will be credited to the demat account of the allotted participants on Monday, October 30 . The shares are likely to be listed on BSE and NSE on Tuesday, October 31. In that case, if the company decides to switch to the T+3 standard, the data will be prepared.
Principal Manager and Registrar of IRM Energy Limited IPO:
The book-running lead managers of the IRM Energy IPO are Hdfc Bank Ltd and Bob Capital Markets Ltd, and the registrar is Link Intime India Private Ltd.
IRM Energy IPO reservation:
IRM Energy IPO has not more than 50% of the shares in the public issue reserved for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and not less than 35% of the offering is reserved for Private investors. A discount of Rs 48 per equity share is offered to eligible employees bidding for the employee reserve portion.
IRM Energy IPO GMP today:
IRM Energy Limited IPO GMP today or gray market premium is +70. This indicates that IRM Energy’s share price was trading at a premium of Rs 70 in the gray market on Tuesday, according to investorgain.com.
Taking into account the upper end of the IPO price band and the current gray market premium, the estimated listing price of IRM Energy share price was indicated at Rs 575 per piece, which is 13.86% higher than the IPO price of Rs 505.
The ‘grey market premium’ indicates that investors are willing to pay more than the issue price.
What should investors do?
Reliance Securities said: “IRM key GA is lucrative and underpenetrated, with strong volume growth expected to reach 1.51 mmscmd from the current FY23 volume of 0.54 mmscmd. The government’s focus on transitioning to a gas-based economy, developing the natural gas network connecting India’s key demand and supply centers and increasing the share of natural gas in the energy mix from 6.3% in FY 2030 to 15% in FY 2030, will ensure that the structural story remains intact. IRM’s diverse customer portfolio and distribution network of CNG and PNG and strong relationships through joint efforts with a diverse customer base including industrial, commercial and domestic customers, ensure an efficient and optimal business mix. Due to consistent volume growth from key GA, new business from Tamil Nadu, a key market going forward, we recommend subscribing to this issue for the long term.”
