IRM Energy IPO subscribed 4.36 times on second day of subscription

The Initial Public Offering (IPO) of city gas distribution company IRM Energy was subscribed 4.36 times on the second day of the offer on Thursday.

The Rs 545.40 crore-initial share sale received bids for 3,32,69,235 shares against 76,24,800 shares on offer, as per data available on the NSE.

The category for non-institutional investors was subscribed 9.08 times while the quota for Retail Individual Investors (RIIs) received 4.36 times subscription and the portion for Qualified Institutional Buyers (QIBs) got subscribed 1.18 times.

The IPO is a fresh issue of up to 1.08 crore equity shares. The offer is in the price range of Rs 480-505 per share.

IRM Energy Ltd on Tuesday said it has raised over Rs 160 crore from anchor investors.

Proceeds from the issue to the tune of Rs 307.26 crore will be used to fund capital expenditure requirements for the development of the city gas distribution network at Namakkal and Tiruchirappalli in Tamil Nadu and Rs 135 crore for payment of debt.

Besides, a portion will be used for general corporate purposes.

Equity shares of the company are proposed to be listed on the BSE and the NSE.

BOB Capital Markets and HDFC Bank are the managers to the offer.

IRM Energy provides piped natural gas and compressed natural gas. It has operations in many states, including Gujarat, Punjab, and Tamil Nadu.