IRM Energy IPO subscribed 1.71 times on first day of subscription

On the first day of registration on Wednesday, the initial public offering (IPO) of city gas distribution company IRM Energy was subscribed 1.71 times.

The initial share sale worth Rs 545.40 crore saw bids for 1,30,38,661 shares against 76,24,800 shares on offer, according to NSE data.

The Non-Institutional Investor category was subscribed 2.60 times, while the Individual Retail Investors (RIIs) quota was subscribed 1.77 times and the Qualified Institutional Buyers (QIBs) portion was subscribed 1.07 times .

The IPO is a fresh issue of up to 1.08 crore shares. The price band for the offer is Rs 480-505 per share.

IRM Energy Ltd on Tuesday said it has raised over Rs 160 crore from major investors.

The proceeds of the issue worth Rs 307.26 crore will be used to finance capital expenditure for development of city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu and Rs 135 crore for debt servicing.

In addition, part will be used for general corporate purposes.

BOB Capital Markets and HDFC Bank are managing the offering.

IRM Energy supplies piped natural gas and compressed natural gas (CNG). It has operations in many states, including Gujarat, Punjab and Tamil Nadu, and serves 184 industrial customers, 269 commercial customers and 52,454 domestic customers as of June 2023.

It has an established network of 69 CNG fuel stations, of which two are company owned and operated, 36 are dealer owned and operated, and 31 are owned and operated by oil marketing companies.

Shares of the company are proposed to be listed on the BSE and NSE.