The initial public offering (IPO) of city gas distribution company IRM Energy was subscribed 1.71 times on the first day of subscription on Wednesday.
The Rs 545.40 crore initial share sale received bids for 1,30,38,661 shares against 76,24,800 shares on offer, according to NSE data.
The category for non-institutional investors was subscribed 2.60 times while the quota for retail individual investors (RIIs) received 1.77 times subscription and the portion for qualified institutional buyers (QIBs) got subscribed 1.07 times.
The IPO is a fresh issue of up to 1.08 crore equity shares. The price range for the offer is Rs 480-505 a 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.
BOB Capital Markets and HDFC Bank are the managers of the offer.
IRM Energy provides piped natural gas and compressed natural gas (CNG). It has operations in many states, including Gujarat, Punjab, and Tamil Nadu and serves 184 industrial customers, 269 commercial customers, and 52,454 domestic customers as of June 2023.
It has an established network of 69 CNG filling stations, comprising two owned and operated by the company, 36 owned and operated by dealers, and 31 owned and operated by oil marketing companies.
Equity shares of the company are proposed to be listed on the BSE and the NSE.