Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

IRM Energy IPO Oversubscribed 27 Times, Anticipates Listing Gains

Published 24/10/2023, 04:06 am
© Reuters
ERII
-

City gas distribution company, IRM Energy, saw its Initial Public Offering (IPO) oversubscribed by a factor of 27.05 during the subscription period from Tuesday to Thursday. The period saw bids for 20,62,70,910 shares against the offered 76,24,800 shares. The IPO included a fresh issue of up to 1.08 crore equity shares.

Non-institutional investors demonstrated the highest interest in the IPO with a subscription rate of 48.34 times. They were followed by Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs) at 44.73 and 9.29 times respectively.

Today, IRM Energy's shares are trading in the grey market at a premium of Rs 49 above their upper issue price of Rs 505 per share, indicating a Grey Market Premium (GMP). This GMP suggests a projected listing gain of approximately 9.7% from the public issue.

The company has secured Rs 160 crore from anchor investors and plans to allocate Rs 307.26 crore for capital expenditure requirements. This will specifically go towards expanding its city gas distribution network in Namakkal and Tiruchirappalli, Tamil Nadu. Approximately Rs 135 crore is slated for debt repayment, with the remaining funds allocated for general corporate purposes.

According to InvestingPro Tips, IRM Energy holds more cash than debt on its balance sheet and has impressive gross profit margins, which are reflected in the company's robust gross profit of 72.63M USD, representing a margin of 67.96% as per InvestingPro Data. This solid financial footing might have contributed to the high interest in the company's IPO.

The company is expected to allot shares on either Monday or Wednesday, marking the next significant step in this IPO process.

InvestingPro's real-time metrics reveal that IRM Energy's market cap stands at 1020M USD and the company's P/E ratio is 95.96, suggesting a high earnings multiple, a point highlighted by InvestingPro Tips. Despite the company's strong financial position, the stock has been in oversold territory recently, with a significant fall in price over the last three months. This is indicated by the company's 3 Month Price Total Return of -39.17% according to InvestingPro Data.

InvestingPro offers a wealth of additional tips and real-time metrics for investors. For more insights and data, consider checking out their Pro Pricing page.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.