IRM Energy Ltd., an Indian city gas distribution firm, concluded its initial public offering (IPO) on Friday, with the issue being subscribed 6.80 times. The company, which operates in Gujarat, Punjab, Daman and Diu, and Tamil Nadu, opened its IPO on Tuesday, October 18, aiming to raise Rs 545.40 crore ($73 million) through a fresh issue of 1.08 crore shares priced between Rs 480 and Rs 505.
The third day of the IPO saw different investor categories showing varying levels of interest. Institutional investors subscribed 1.21 times, non-institutional investors showed significant appetite with a 17.18 times subscription, retail investors subscribed 5.87 times, and employee reserved category was subscribed 1.33 times.
Prior to the public issue, IRM Energy raised Rs 160.34 crore ($21.4 million) from anchor investors by allotting them 31,75,200 shares at Rs 505 each on Monday, October 16. The anchor investors included Quant Mutual Fund, DSP Small Cap Fund, HDFC Life Insurance Co., among others. Quant Mutual Fund secured the largest allocation with a share of 24.54%, while ITI Flexi Cap Fund and ITI Mid Cap Fund each netted a share of 1.56%.
Four domestic mutual funds applied through eight schemes collectively netting 54.47% of the anchor portion of Rs 87.34 crore ($11.7 million). The Bank of India secured an allocation of 6.23% through three of its funds.
The company's shares are set to be listed on BSE and NSE on October 31. The total issue size is Rs 545.40 crore ($73 million), underlining IRM Energy's commitment to expanding its natural gas distribution projects that serve industrial, commercial, domestic, and automobile customers.
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