On Wednesday, IRM Energy's initial public offering (IPO) was oversubscribed by 1.71 times on its first day. The company's IPO, valued at Rs 545.40 crore, received bids for over 1.3 crore shares against the offered 76 lakh shares. The share price range was set between Rs 480-505.
The subscription data revealed that non-institutional investors subscribed 2.60 times, retail individual investors at 1.77 times, and qualified institutional buyers at a relatively lower rate of 1.07 times.
Prior to the IPO launch, IRM Energy successfully raised over Rs 160 crore from anchor investors. The company has earmarked the proceeds for capital expenditure to expand the city gas distribution network in Namakkal and Tiruchirappalli, two cities in Tamil Nadu. The funds will also be utilized to facilitate debt repayment.
In relation to this, it's worth noting some key metrics from InvestingPro. The company has a Market Cap of 1050M USD and a P/E Ratio of 98.72. The Revenue for the last twelve months (LTM2023.Q2) was 106.88M USD, with a Gross Profit of 72.63M USD during the same period. The Gross Profit Margin was 67.96%, indicating impressive gross profit margins. This aligns with one of the InvestingPro Tips, which highlights the company's impressive gross profit margins.
Moreover, the company's stock performance has been a topic of discussion among investors. The 1 Month Price Total Return as of Y2023.D291 was -16.81%, and the 3 Month Price Total Return was -37.77%. This aligns with another InvestingPro Tip that states the stock has fared poorly over the last month, and the price has fallen significantly over the last three months.
For more insights like these, consider checking out the additional 15 tips provided by InvestingPro for ERII at InvestingPro ERII. The platform provides real-time metrics and tips for a wide range of companies, which can be invaluable for making informed investment decisions.
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