The Rs 545.50 crore Initial Public Offering of IRM Energy Limited was subscribed 4.37 times on the second day of bidding.
The issue received bids of 3,33,25,640 shares against the offered 76,24,800 equity shares, at a price band of ₹480-505, according to the data available on the stock exchanges.
Non-Institutional Investors Portion was the most subscribed with 9.09 times, followed by Retail Portion with 4.37 times, whereas Qualified Institutional Buyer Portion subscribed 1.18 times. Employee Portion was subscribed 0.94 times. The issue kicked off for subscription on Wednesday, October 18, 2023 and will close on Friday, October 20, 2023.
A day prior to the opening of the issue, IRM Energy Ltd had raised Rs 160.35 crores from anchor investors. Domestic Institutions who participated in the anchor were Quant MF, SBI General Insurance, HDFC Life, DSP MF, ITI MF, BOI MF, Nippon AIF and PNB Metlife.
Leading brokerages like SBI Securities, Nirmal Bang, Anand Rathi, BP Wealth, Hensex Securities, Indsec Securities, Marwari Financial Services, Reliance Securities, and Swastika Investment have given a “SUBSCRIBE” rating to the issue, citing IRM Energy Ltd., a prominent player in the distribution of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG), has received favourable assessments from brokerages. The company's successful track record, diverse customer portfolio, strategic acquisitions, and emphasis on technology adoption have been noted as strengths, contributing to its growth potential. Additionally, its stable financial performance, environmentally friendly fuel alternatives, and reasonable valuation relative to the industry prompted recommendations to subscribe to the IPO for potential long-term gains.
Brokerages recognize IRM Energy's position in a growing market, with a surge expected in natural gas demand, particularly in the CGD sector. The company's steady volume growth and sound operational strategies stand out, making it an attractive investment.
HDFC Bank Limited, and BOB Capital Markets Limited are book running lead manager and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.