IRM Energy shares listed a 5.49% discount over the IPO price amidst weak market sentiments. On the NSE, the stock debuted at Rs 477.25, compared to the Rs 505 issue price, while on the BSE, it listed at Rs 479
“Despite strong subscription demand for its ipo, IRM Energy listing was below street expectations mainly on the back of secondary market mood. Given the mood of the market Mid cap and small cap stocks are under pressure. Conservative investors should look to book losses given the market mood while risky seekers can hold for long term,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
IRM Energy IPO opened for public subscription on Thursday, October 18, 2023 and closed on Friday, October 20, 2023. The price band for its public issue at Rs 480-505 per equity share of face value Rs 10 each. At the upper end of the price band, the company’s promoters and shareholders sought to raise Rs 545.40 crore from the IPO. The IPO comprised a fresh issue of 10,800,000 shares, aggregating up to Rs 545.40 crore. For potential investors, the bidding started at a minimum of 29 equity shares, with subsequent bids in multiple lots of 29 equity shares each. The minimum amount of investment required by retail investors was Rs 14,645.
IRM Energy is involved in the business of storage, supply, distribution, and sale of natural gas and working on laying, operating, maintaining, and expanding the city’s gas distribution networks. Authorized through PNGRB (which allows exclusivity to operate in a particular geographical area (GA) for a limited period), the company develops its natural gas distribution projects catering to both CNG (Compressed Natural Gas – 50.73% revenue mix) and PNG (Piped Natural Gas – 49.27% revenue mix) customers.
