IRM Energy Limited's initial public offering (IPO), a significant player in the Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) distribution market, was oversubscribed by 27.05 times on its last day, Friday. Non-Institutional Investors led the charge with a 48.34 times subscription, while Qualified Institutional Buyers (QIBs) and Retail Individual Investors (RIIs) followed suit with 44.73 and 9.29 times subscriptions respectively.
The IPO, which ran from October 18-20, 2023, involved a fresh issue of up to 1.08 crore equity shares priced between Rs 480-505. The company received bids for 20,62,70,910 shares against the 76,24,800 shares offered in its Rs 545.40 crore-initial share sale.
Earlier in the week, IRM Energy had generated a strong response with a subscription rate of 4.37 times on day two of the IPO. Non-Institutional Investors again led with a 9.09 times subscription, followed by Retail at 4.37 times.
Prior to the IPO launch, IRM secured Rs 160.35 crores from anchor investors, demonstrating its stable financial performance and robust track record in the CNG and PNG sector. Major brokerages including SBI Securities endorsed the company for its strategic acquisitions, sound operational strategies, steady volume growth, and emphasis on technology adoption in the face of rising natural gas demand.
The proceeds from the IPO will fund the development of the city gas distribution network in Namakkal and Tiruchirappalli, Tamil Nadu, and repay Rs 135 crore debt. HDFC Bank Limited and BOB Capital Markets Limited managed the book running for the IPO, with Link Intime India Private Limited acting as the registrar. The equity shares are proposed for listing on BSE and NSE.
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