IRM Energy is into Oil & Gas-City Gas Distribution and is looking raise funds through Fresh Issue
IRM Energy IPO is a public offering of shares by Dr. Rajiv Indravadan Modi, Cadila Pharmaceuticals Limited and IRM Trust.. The IPO will open on October 18 and will close on October 20. The price band is ₹480 to ₹505 per share and the lot size is 29 shares. The issue size is ₹545.4 crore. The shares are expected to be listed on NSE, BSE on October 31 (^). Some additional information that you may find useful are:
Served 168 / 202 / 43183 customers in Industrial / Commercial / Domestic sector during H1FY23.
Established a network of 56 CNG filling stations, comprising 2 stations owned and operated by the Company (“COCO Stations”), 30 CNG stations owned and operated by dealers (“DODO Stations”) and 24 CNG stations owned and operated by oil marketing companies (“OMC Stations”).
: (**) - based on higher price band (^) indicative date
Promoters of the company are Dr. Rajiv Indravadan Modi, Cadila Pharmaceuticals Limited and IRM Trust. Currently promoters hold 67.94% stake in the company.
Quick Pointers
- Company aims to raise between Rs 518 to 545 crs through this IPO.
- The net proceeds of the issue will be utilized to 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. and 2) Prepayment or repayment of outstanding borrowings - Rs. 167.5 cr.
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 17-Oct-23.
- Price band for the IPO has been fixed at Rs 480 to 505 per share and bid lot are in multiple of 29 shares. The implied market cap post-issue at Rs 1,971 to 2,074 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on October 26 and share are expected to be listed on NSE, BSE on October 31.
- Company has direct peer competition in India'a City Gas Distribution sector. In Listed space peers include Gujarat Gas, Indraprastha Gas, Mahanagar Gas and Adani Total Gas.
- HDFC Bank, BOB Capital Markets has been appointed as Merchant Banker to the issue. Link Intime (India) Pvt. Ltd. has been appointed as official registrar of the issue.
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IPO Quick Snapshot
About Company
IRM Energy, promoted by Dr. Rajiv Indravadan Modi, Cadila Pharma (49.5% stake) and IRM Trust (18.44% stake). Company 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.
Served 168 / 202 / 43183 customers in Industrial / Commercial / Domestic sector during H1FY23.
Established a network of 56 CNG filling stations, comprising 2 stations owned and operated by the Company (“COCO Stations”), 30 CNG stations owned and operated by dealers (“DODO Stations”) and 24 CNG stations owned and operated by oil marketing companies (“OMC Stations”).
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.
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Check Allotment Status of IPO
| Please check below or visit Link Intime (India) Pvt. Ltd. link at here to check allotment status of IPO |
Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.
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