IRM Energy shares disappoint Dalal Street debut; lists at 6% discount at Rs 477.25

Shares of IRM Energy made a muted debut on Dalal Street on Thursday as the stock was listed at a discount of 6 per cent at Rs 477.25 on the National Stock Exchange (NSE), against the issue price of Rs 505 apiece. Similarly, the stock was listed at Rs 479, a discount of 5 per cent over the given issue price on BSE.

However, the listing has been on the contrary to the expected lines. Ahead of its listing, shares of IRM Energy were commanding a premium of Rs 20-25 in the grey market, suggesting a listing pop of up to 5 per cent over its issue price. However, the premium in the unofficial counter has corrected sharply from Rs 90-level at its peak.

The IPO of Cadila Pharmaceuticals-backed IRM Energy was open for bidding between October 18-20 as it sold its shares in the range of Rs 480-505 with a lot size of 29 equity shares. The city gas distribution player sold a total of 1.08 crore fresh shares in its IPO to raise a total of Rs 545.40 crore.

The issue of IRM Energy was overall subscribed 27.05 times. The quota for non-institutional buyers (NIIs) was subscribed 48.34 times, while the portion for qualified institutional bidders (QIBs) was booked 44.73 times. The allocation for the retail investors saw bidding for 9.29 times, while employees' allocations was booked 2.05 times during the bidding process.

Incorporated in 2015, IRM Energy is a city-gas distribution company, involved in developing, operating, and expanding of the local natural gas distribution network. IRM Energy is a value-driven energy enterprise serving industrial, commercial, domestic, and automobile customers.

The company has its presence in Gujarat, Punjab, Daman and Dui, and is now expanding its footprint in Tamil Nadu. HDFC Bank and BoB Capital Markets were the lead managers of the Ahmedabad-based IRM Energy IPO, while Link Intime India was the registrar for the issue.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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