IRM Energy IPO opens today – all you need to know about the issue

Oct 18, 2023

By: Katya Naidu

About IRM Energy

IRM Energy is a city gas distribution company, engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network.

Credit: Pixabay

IPO dates

IRM Energy’s initial public offer (IPO) opens on October 18 and closes on Friday, October 20. The company aims to raise as much as ₹545.4 crore at the upper end of the price band.

Credit: Pixabay

Price band & lot size

The entirely fresh issue has fixed a price band of ₹480-505 per equity share. Investors can bid for a minimum of 29 equity shares and in multiples of 29 equity shares thereafter.

Credit: Pixabay

Anchor investors

It has raised as much as ₹160.35 crore from anchor investors like Quant MF, SBI General Insurance, HDFC Life, DSP MF, BOI MF, Nippon AIF and PNB Metlife.

Credit: IANS

Financial performance

In FY23, the company’s revenues almost doubled to ₹1,039 crore as compared to the year before. Its net profit went up 35 percent to ₹26.9 crore.

Credit: Pixabay

Listed peers

Some of its listed peers include Gujarat Gas, Indraprastha Gas, Mahanagar Gas and Adani Total Gas.

Credit: Pixabay

Net proceeds

It intends to use its net proceeds to fund capex to develop the city gas network in Namakkal and Tiruchirappalli, loan payments and general corporate purposes.

Credit: Pixabay

Risk factors

Its dependence on third parties to source and transport gas, the hazardous nature of the business and the many licences involved in the business have been quoted as risk factors in the DRHP.

Credit: IANS

GMP

The grey market is expecting 15 percent listing gains from the stock.

Credit: IANS

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