Positron Energy IPO Day 3: Massive 191.4x Subscription – Should You Jump In? GMP & Subscription Details Inside

The Positron Energy IPO has drawn significant attention from investors on its final bidding day. Opened on August 12, the IPO closes today. By 2:30 p.m., a total of 26,080,400 bids were made for 1,362,600 shares, showing an impressive subscription rate of 191.40 times, as reported by Chittorgarh.

Retail investors showed a high level of interest, subscribing 228.07 times, while non-institutional buyers and qualified institutional buyers subscribed 286 times and 56 times, respectively. This IPO is a book-built issue worth ₹51.21 crore, with 20.48 lakh new shares and no shares being sold by existing shareholders.

GMP Indicates Strong Listing Potential

Today’s grey market premium (GMP) for Positron Energy’s IPO stands at ₹200 per share, suggesting that the shares could list ₹200 higher than the issue price. With a price band of ₹238-₹250 per share, the expected listing price could be around ₹450, representing an 80% premium. The GMP is a preliminary indication of investor interest and should not be the sole factor in investment decisions.

About Positron Energy

Positron Energy offers management and technical advisory services in the oil and gas industry, providing comprehensive solutions for gas distribution across India. Their services include management consultancy, project management, and operations and maintenance (O&M). The company has built a gas aggregation business volume of approximately 35 MMSCM, primarily in natural gas.

The company’s technical qualifications and inclusion on major industrial customer lists highlight its reliability and expertise. Positron facilitates natural gas distribution through common carrier pipeline networks operated by both public and private sector companies in India.

Partnership with Indian Gas Exchange

Positron Energy has secured access to on-demand natural gas through its membership with the Indian Gas Exchange (IGX). This allows the company to source natural gas as needed from the free market, where prices are transparent. The company can also sell excess gas if required. Currently, Positron’s portfolio includes a daily volume of 4,000-5,000 MMBTU of gas from various sources, managed through long-term contracts with its customers.

Should You Invest?

Given the growth in the oil and gas sector and Positron’s strong market position, the company appears to be a solid investment opportunity. Dilip Davda, a contributing editor at Chittorgarh.com, suggests that the IPO is fully priced based on FY24 earnings, and investors might consider it for medium to long-term investment.