The initial public offering (IPO) of IRM Energy was subscribed 27.05 times. The IPO of IRM Energy Limited, a city gas distribution (CGD) company, saw keen interest from qualified institutional buyers (QIBs) and non-institution investors (NIIs).

The ₹545.40-crore IPO received bids for 20.63 crore shares against 76.25 lakh shares on offer. The category for NII was subscribed 48.34 times while the portion for QIBs received 44.73 times subscription and retail investors’ 9.29 times.

The company, which is in the business of laying, building, operating, and expanding the city or local natural gas distribution network, came out with a price band of ₹480-505.

The public Issue of face value of ₹10 a share is entirely a fresh issue of equity shares up to 1.08 crore shares. The offer also includes a reservation for eligible employees, who enjoyed a discount of ₹48 a share. The portion set aside for employees was subscribed two times.

The company intends to utilise about ₹307.26 crore for funding capital expenditure requirements for the development of the city gas distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu), while ₹135 crore will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company, and general corporate purpose.

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Anchor investors

As part of IPO process, the company garnered ₹160.35 crore from anchor investors by allotting 31.75 lakh shares at ₹505 a share. Among the anchor investors were Quant MF, SBI General Insurance, HDFC Life, DSP MF, ITI MF, BOI MF, Nippon AIF and PNB Metlife.

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