IRM Energy shares make disappointing market debut; fall over 6%

Shares of city gas distribution company IRM Energy made a disappointing market debut on Thursday, ending with a discount of over 6 per cent, against the issue price of Rs 505.

The stock listed at Rs 479, registering a decline of 5.14 per cent from the issue price on the BSE. During the day, it fell 10.88 per cent to Rs 450.05. Shares of the company ended at Rs 472.95 apiece, down 6.34 per cent.

On the NSE, the stock made its debut at Rs 477.25, a fall of 5.49 per cent. Shares of the firm ended at Rs 472.45 per piece, a decline of 6.44 per cent.

In the equity market, the 30-share BSE Sensex plummeted 900.91 points or 1.41 per cent to settle at 63,148.15 and the Nifty plunged 264.90 points or 1.39 per cent to 18,857.25.

"The IPO was well received by investors, and oversubscribed by 27 times. However, the current market condition could be a reason behind such a poor listing," Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said.

In volume terms, 3.77 lakh shares of the company were traded on the BSE and over 54.29 lakh shares on the NSE during the day.

The Initial Public Offering (IPO) of IRM Energy was subscribed 27.05 times on the last day of subscription on Friday.

The Rs 545.40 crore initial share sale had a price range of Rs 480-505 a share.

The IPO was a fresh issue of up to 1.08 crore equity shares.

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