IRM Energy IPO: What does the latest GMP signal ahead of listing; check key details

Also Read: IRM Energy IPO allotment finalised: Check latest GMP, here’s how to check allotment status

IRM Energy IPO opened for subscription on Wednesday, October 18, and closed on Friday, October 20. IRM Energy IPO price band was set in the range of ₹480 to ₹505 per equity share of face value of ₹10.

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IRM Energy Limited IPO was subscribed 27.05 times on the last day. On the final day of the subscription, qualified institutional buyers (QIBs) and non-institutional investors oversubscribed to the issue following a fantastic response from retail investors. Retail subscribers subscribed 9.29 times, while Non-Institutional Investors subscribed 48.34 times, and Qualified Institutional Buyers subscribed 44.73 times. 2.05 subscribers made up the employee portion.

Also Read: IRM Energy IPO: Issue fully booked on day 2, check GMP, should you subscribe?

IRM Energy IPO has been subscribed 4.37 times on day 2, and the first day of bidding for the IRM Energy IPO saw 1.71 times subscription. 

Let’s check what does IRM Energy IPO GMP today signal ahead of listing.

IRM Energy IPO GMP today

IRM Energy Limited IPO GMP today or grey market premium is +32. This indicates IRM Energy share price were trading at a premium of ₹32 in the grey market on Wednesday, according to investorgain.com.

Also Read: IRM Energy IPO: 10 key risks investors should know before investing

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of IRM Energy share price was indicated at ₹537 apiece, which is 6.34% higher than the IPO price of ₹505.

In the last 20 sessions grey market activities, the current GMP ( ₹32) is showing signals towards the lower side. The lowest GMP is ₹0, while the highest GMP is ₹105, as per analysts at investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: IRM Energy IPO opens tomorrow: GMP, issue details, 10 key things to know

IRM Energy IPO details

IRM Energy IPO is completely a fresh issue of 10,800,000 equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

The company intends to use the net proceeds from the offering to fund the following goals: prepayment or repayment of all or a portion of certain outstanding borrowings obtained by the company; general corporate purposes; and funding capital expenditure requirements for development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in Fiscal 2024, Fiscal 2025, Fiscal 2026, and Fiscal 2027, according to the Red Herring Prospectus (RHP).

The company’s comparable listed peer are Gujarat Gas Ltd (with P/E of 18.69), and Indraprastha Gas Ltd (with P/E of 19.21).

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.

Also Read: IRM Energy IPO opens on October 18, price band set at ₹480-505 per share

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 25 Oct 2023, 01:01 PM IST