Ahmedabad based City Gas Distribution Company IRM Energy files DRHP with SEBI for the proposed IPO; Key Details here

IRM Energy is into Oil & Gas City Gas Distribution and is looking raise funds through Fresh Issue

IRM EnergyIPO: Fresh Issue of 10,100,000 Equity Shares through public issue IPO

IRM Energy IPO: IRM Energy Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

. HDFC Bank, BOB Capital Markets have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime (India) Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue of up to 10,100,000 Equity Sharesby Being a Fresh Issue hence, no selling shareholders...

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Objects of the issue:
1) Funding capital expenditure requirements for development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirapalli (Tamil Nadu)in Fiscal 2024, 2025 and 2026 - Rs. 307.3 cr., 2) Prepayment or repayment of outstanding borrowings - Rs. 167.5 cr., and 3) General Corporate Purpose.

Promoters of IRM Energy are Dr. Rajiv Indravadan Modi, Cadila Pharmaceuticals Limited and IRM Trust. and holds 67.94% stake in the company.

About Company:
IRM Energy, incorporated in 2015 is city gas distribution (“CGD”) company, with operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu). Company is also engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network. It is integrated value driven energy enterprise, developing natural gas distribution projects in the geographical areas (“GAs”) allotted for industrial, commercial, domestic and automobile customers since 2017.

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About Industry:
Natural gas consumption in India clocked a compound annual growth rate (CAGR) of 3.8% between Fiscals 2016 and 2020, rising to ~176 MMSCMD in Fiscal 2020. Natural gas demand from the CGD sector to log 15-16% CAGR between Fiscals2022 and 2030, to 103-107MMSCMD. Demand from each sub-segment, including compressed and piped natural gas, is likely to grow at a healthy pace withexpansion in the gas network to more cities. Increase in penetration is expected to be a key demand driver for the PNGand CNGsegment.

Source: SEBI, BSE, NSE, DRHP, IRM Energy, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.