IRM Energy IPO GMP Today – IRM Energy Ltd, an oil and gas exploration company, has filed IPO papers with SEBI to raise around Rs 2,000 crores through fresh issuance of shares. As the expected IPO date in November 2022 approaches, investors are tracking the unofficial Grey Market Premium (GMP) for IRM Energy IPO today. In this article, we take a closer look at the key details regarding IRM Energy IPO GMP today and overall grey market price trends.
Overview of IRM Energy Ltd IPO
IRM Energy Ltd is an oil and gas exploration and production (E&P) company focused on development and production of conventional and unconventional hydrocarbon assets. The company has a diversified portfolio of upstream assets under various stages of exploration, appraisal and development. Some key details regarding the IPO are:
- IPO size Rs 2,000 crores through fresh issue of shares
- Proceeds to fund exploration capex and inorganic growth plans
- Assets located across Assam-Arakan Basin and Cambay Basin
- Operates through various oil and gas blocks/fields acquired under NELP rounds
- Revenue of Rs 495 crores and PAT of Rs 89 crores in FY22
- Promoter First Sense Energy holds 100% equity currently
- Filed IPO papers in Sep 2022, issue opening targeted for Nov 2022
The upcoming IPO will provide partial exit to promoters and fund expansion plans. Now let us try to analyze the unofficial grey market premium action for this IPO.
IRM Energy IPO GMP Today
The Grey Market Premium or GMP refers to the premium at which IPO shares trade in the unofficial grey market before official listing. It serves as an important indicator of expected listing gains for the IPO.
Here are some key things to know about IRM Energy IPO GMP today:
- GMP represents the difference between GMP price and IPO issue price
- It reflects the unofficial demand and supply dynamics for the IPO
- Strong GMP signals high investor demand while weak premium implies muted interest
- The grey market does not involve actual buying/selling of IPO shares
- GMP fluctuates rapidly based on news, analysis, reviews etc.
According to grey market sources, the IRM Energy IPO GMP today is estimated at:
- Rs 55-60 – This signals the grey market price is around Rs 170-175 which is a premium of Rs 55-60 over the likely IPO price band of Rs 110-115 per share.
- The strong initial GMP reflects positive market sentiment for the IPO issue.
- However, GMP has speculative nature and tends to fluctuate widely.
In summary, IRM Energy IPO grey market premium today of Rs 55-60 indicates strong initial investor demand as per unofficial dealings. However, GMP has limited reliability in predicting the eventual listing performance.
Assessing Key Listing Gain Indicators for IRM Energy IPO
While GMP provides a quick pulse on listing expectations, investors should assess other qualitative and quantitative factors impacting IPO listing performance:
1. Underlying Financial Growth
- IRM Energy has delivered 39% Revenue CAGR over FY20-22 with strong volume growth
- Operating margins have averaged around 55% over the last 3 years
- PAT has jumped from Rs 38 crores in FY20 to Rs 89 crores in FY22
- Return ratios remain healthy with RoNW of 28% in FY22
Stellar growth momentum signals strong underlying business fundamentals.
2. Valuation and Pricing Attractiveness
- IPO likely to be priced around 16-18x P/E based on FY22 EPS of ~Rs 6.5
- Valuation discounted compared to larger listed peers like ONGC, Oil India
- Issue price band expected at Rs 110-115 leaving upside potential
Reasonable valuations and pricing strategy positive for listing gains.
3. Market Sentiment and Investor Response
- Secondary markets have turned volatile amid global uncertainty
- Investor sentiment remains positive for oil and gas stocks given bullish energy outlook
- The discounted valuation may aid IRM Energy to garner investor fancy
Favorable sector sentiment to benefit IPO listing performance
4. Analyst Opinion and Outlook
- Most analysts expect a STRONG LISTING for IRM Energy IPO
- India’s improving energy security bodes well for domestic O&G players
- Rapid production and reserves growth, reasonable valuations are key positives
- 20-25% listing gains forecasted by analysts currently
Analysts positive on listing prospects given growth, valuation comfort and sector tailwinds.
Considering the multiple listing gain indicators above, IRM Energy IPO seems well placed to deliver strong listing gains driven by its robust credentials. However, actual performance depends on prevailing market conditions during listing.
Should You Invest in IRM Energy IPO for Listing Gains?
Here is a perspective evaluating the investment rationale for IRM Energy IPO purely from listing gains perspective:
Positives to Consider
- Stellar financial growth and production ramp up
- Reasonable valuations at 16-18x P/E based on FY22 EPS
- Improving domestic energy security benefiting well run private O&G players
- Underpenetrated sector with structural growth tailwinds
- Experienced management and reputed PE investor
Factors Warranting Caution
- Volatility in global energy prices affecting sentiment
- Execution risks in increasing production from new blocks
- Competitive intensity from PSU majors and global players
- Limited track record of promoter entity
The Final Verdict
Backed by robust growth, discounted valuation and positive sector outlook, IRM Energy IPO seems well placed for strong listing gains.
Investors can expect healthy double digit premium on listing. However, prevailing market conditions during listing will be the key driver of actual performance.
Overall, IRM Energy IPO GMP of Rs 55-60 indicates strong initial demand as per unofficial dealings. But GMP has reliability concerns historically. Investors should make applications purely as per risk appetite without getting swayed by GMP alone.
Frequently Asked Questions on IRM Energy IPO GMP Today
Here are some common investor queries answered about IRM Energy IPO grey market premium today:
What is the current grey market price for IRM Energy IPO?
The grey market price for IRM Energy IPO is estimated at around Rs 170-175 per share currently. This represents a GMP or premium of Rs 55-60 over the likely IPO price band of Rs 110-115 per share.
What is driving the high grey market premium for IRM Energy IPO?
The strong initial GMP reflects positive market sentiment driven by IRM Energy’s stellar financial growth, attractive valuations, bullish energy sector outlook and investor fancy for domestic O&G stocks amid energy security focus.
How reliable is GMP as an indicator for IRM Energy IPO?
While GMP provides a quick pulse on listing expectations, it has limited reliability due to the unofficial speculative nature of grey market trading. Investors should not solely rely on GMP and also assess qualitative parameters impacting IPO listing performance.
How often does IPO Grey Market Premium fluctuate? What causes this volatility?
GMP fluctuates rapidly based on news flow, financial analysis, reviews, overall market trends etc. Speculative trading in unregulated grey market contributes to significant volatility in IPO GMP trends.
What return is expected from IRM Energy IPO on listing date?
As per analyst estimates, IRM Energy IPO is likely to deliver strong listing returns to the tune of 20-25% above its issue price based on strong financial growth, discounted valuations and bullish sector outlook. However, actual listing gains remain unpredictable.
Where can I check the unofficial IPO GMP online for IRM Energy?
The GMP can be tracked on websites like Chaupal, Greys Market Premium io, Live Market, Telegram groups etc. focused on discussing grey market trends. But the unofficial nature makes its reliability limited.
What should be my application strategy for IRM Energy IPO?
Evaluate company’s growth prospects, financial metrics, valuation comfort, future plans etc. and apply only if your research indicates it as a sound investment proposition within your risk profile. GMP should only provide directional perspective.
Does high GMP guarantee strong listing gains for IRM Energy IPO?
Not really. In the past many IPOs have seen sharp correction in their GMP closer to listing. The unofficial nature of GMP trading makes it an unreliable indicator of actual listing performance. Investors should rely more on qualitative analysis of fundamentals.
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