IRM Energy, backed by Cadila Pharmaceuticals, made a disappointing debut on the Bombay Stock Exchange (BSE) Thursday, listing at a 7% discount from its issue price of Rs 505 ($1 = Rs 83.2) at Rs 477.25 per share, despite an oversubscription rate of 27.05 times during its October 18-20 subscription period. The initial public offering (IPO) was primarily subscribed by institutional investors.
The company's market capitalization stands at Rs 1,966 crore (Rs 1 crore = $120,127). Unlike recent stocks such as Plaza Wires, Updater Services, JSW Infra, Yatra Online, and Signature Global that showed varying listing gains, IRM Energy had no offer for sale portion in its issue.
The IPO featured a fresh issue of up to 10.8 million equity shares within the price range of Rs 480-505 per share and received bids for over 200 million shares against an offer of around 7.6 million shares. The subscription rate varied among investor categories: non-institutional investors subscribed 48.34 times, QIBs 44.73 times, and retail individual investors 9.29 times.
In financial year 2023, IRM Energy saw its revenues double to Rs 1,039 crore and net profit increase by 35% to Rs 26.9 crore. The company raised over Rs 160 crore from anchor investors and the IPO proceeds of Rs 307.26 crore will be used for capital expenditure to develop city gas networks in Namakkal and Tiruchirappalli in Tamil Nadu, repay a debt of Rs 135 crore, and meet general corporate expenses.
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