IRM Energy Share Price IPO: Why the IRM Energy Share Price Debuts at a 5.5% Discount on NSE

IRM Energy Shares Price Make a Slow Start on Dalal Street

Brokers maintained that IRM Energy Share price was reasonable, but a significant cause for concern was the company’s declining margin during the 2013 fiscal year.

The industry in which IRM Energy works is City Gas Distribution (CGD). Selling compressed natural gas (CNG) and piped natural gas (PNG) in designated geographic areas (GA) brings in money for the business.

Supported by Cadila Pharmaceuticals, IRM Energy struggled to gain traction in the stock market due to a general market downturn. With a 5.5% discount to the issue price of ₹505, the stock started trading at ₹477.25 on the National Stock Exchange (NSE) and ₹479 on the Bombay Stock Exchange (BSE).

Analysts had anticipated that the stock would launch at a premium of 8–10%, but market downturns had other ideas.

The IPO for IRM Energy Share Price was oversubscribed by 27.05 times. Qualified institutional buyers (QIBs) subscribed 44.73 times, non-institutional investors 48.34 times, and retail investors 9.29 times.

The industry in which IRM Energy Share Price works is City Gas Distribution (CGD). Selling compressed natural gas (CNG) and piped natural gas (PNG) in designated geographic areas (GA) brings in money for the business.

Brokers maintained that IRM Energy Share Price was reasonable, but a significant worry for the 2013 fiscal year was the diminishing margin.

Profit margins decreased from 20.8% in the fiscal year 2012 to 5.4% in the fiscal year 2013, and EBITDA margins decreased from 31% to 10% in the same time frame.

IRM Energy claims that lower APME allocations and higher non-APME gas prices, along with global headwinds and the transition phase for naming industries in Fatehgarh—which spared customers from paying the full cost increase in gas for transformation and increasing volumes—were the causes of the decline in margin in the financial year 2023 and the rise in debt.

According to Shivani Nyati, the wealth chief of Swastika Investmart, IRM Energy is still in its early stages of development and is susceptible to a variety of unanticipated events, including restricted geographic reach, governmental regulations, delayed revenue generation, and other risks.

A risk associated with the rapidly expanding electric vehicle (EV) market is that the move toward clean and renewable energy sources may have an effect on natural gas consumption, which may result in a decline in natural gas demand from IRM Energy’s clientele.

Disclaimer: Neither the website nor its administration endorses the expert’s views or investment strategies; rather, they are their own.

IRM Energy Share Price stock market debut was lackluster on Thursday; it debuted at ₹477 on the NSE, 5.5% below the issue price of ₹505. On the BSE, the stock opened at ₹479. The stock fell below its issue price of ₹505 to as low as ₹465 after listing. IRM Energy was down 7% at ₹468 as of 10:04 AM. On the NSE and BSE combined, there were roughly 1.4 million equity shares traded. The Nifty 50, on the other hand, was down 0.95% at 18,941.

Despite being a relatively new business, IRM Energy Share Price has a wide range of clients, a robust distribution network, and enduring client relationships. Furthermore, the business is in a good position to gain from India’s rising natural gas demand. The current sentiment in the market may be the cause of the poor listing performance. Because of the unfavorable sentiment in the market right now regarding its listing, investors might want to set a stop loss at ₹455 and pull out if the stock moves above this mark. The initial public offering (IPO) was oversubscribed by a staggering 27 times, indicating a strong response from investors. The IPO was priced at ₹545 crore. Qualified institutional buyers (QIBs) received an allotment 44.73 times, while retail individual investors (RIIs) subscribed 9.29 times. Non-institutional investors subscribed 48.34 times.

IRM Energy share Price had a modest start on Dalal Street on Thursday. The National Stock Exchange (NSE) listed the stock at ₹477.25 per share, which represented a 6% discount from the ₹505 issue price. In a similar vein, it was discounted by 5% and listed at ₹479 per share on the Bombay Stock Exchange (BSE).

But the listing fell short of what was expected of it. IRM Energy shares were trading in the grey market at a premium of ₹20–25 prior to listing, indicating a listing pop of up to 5% above its issue price. But from its peak of ₹90, the unofficial premium has dropped off quickly.

IRM Energy’s initial public offering (IPO), supported by Cadila Pharmaceuticals, had a lot size of 29 equity shares and a price range of ₹480–505 per share. Bidding was open from October 18 to October 20. Through the sale of 1.08 crore new shares, the City Gas Distribution company raised ₹545.40 crore in total during its initial public offering.

The IPO of IRM Energy received 27.05 subscriptions overall. Retail investors applied for an allotment 9.29 times, qualified institutional buyers (QIBs) 44.73 times, and non-institutional investors (NIIs) 48.34 times.