Don’t Miss the Explosive Opportunity with IRM Energy Limited IPO!: Fueling the Future of Gas Distribution

IRM Energy IPO: As India continues to grow and urbanize, the demand for clean and sustainable energy sources is on the rise. In this context, IRM Energy Limited, a prominent player in the gas distribution industry, is set to go public with its Initial Public Offering (IPO). In this blog, we will delve into the details of the IRM Energy Limited IPO, including its key dates, price band, company profile, and what investors can expect from this offering.

IRM Energy Limited IPO Details

IRM Energy IPO is a book-built issue with a total size of Rs 545.40 crores. This offering consists entirely of fresh shares, totaling 1.08 crore shares. The IPO subscription period begins on October 18, 2023, and concludes on October 20, 2023. The allotment for the IPO is anticipated to be finalized on Friday, October 27, 2023. The shares will be listed on both BSE and NSE, with a tentative listing date of Tuesday, October 31, 2023.

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Here are some essential details about the IRM Energy IPO:

  • Price Band: The price band for the IPO is set at ₹480 to ₹505 per share.
  • Lot Size: The minimum lot size for an application is 29 shares.
  • Minimum Investment: Retail investors are required to invest a minimum of ₹14,645.
  • Minimum Lot Size for sNII: For Subscribed Non-Institutional Investors (sNII), the minimum investment is 14 lots (406 shares), amounting to ₹205,030.
  • Minimum Lot Size for bNII: Subscribed Big Non-Institutional Investors (bNII) need to invest in 69 lots (2,001 shares), totaling ₹1,010,505.

See Also: IPO GMP Price

IRM Energy IPO Details

IPO NameIRM Energy IPO
IPO DateOctober 18, 2023 to October 20, 2023
Listing DateOctober 31, 2023
Face Value₹10 per share
Price Band₹480 to ₹505 per share
Lot Size29 Shares
Total Issue Size10,800,000 shares (aggregating up to ₹545.40 Cr)
Fresh Issue10,800,000 shares (aggregating up to ₹545.40 Cr)
Employee DiscountRs 48 per share
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Shareholding Pre-Issue30,259,677
Shareholding Post-Issue41,059,677

IRM Energy IPO Reservation

  • QIB Shares Offered: Not more than 50% of the Net Issue
  • Retail Shares Offered: Not less than 35% of the Net Issue
  • NII (HNI) Shares Offered: Not less than 15% of the Net Issue

IRM Energy IPO Lot Size

Investors can bid for a minimum of 29 shares and in multiples thereof. The table below outlines the minimum and maximum investments for retail investors and HNIs in terms of shares and amounts:

  • Retail (Min): 1 lot, 29 shares, ₹14,645
  • Retail (Max): 13 lots, 377 shares, ₹190,385
  • S-HNI (Min): 14 lots, 406 shares, ₹205,030
  • S-HNI (Max): 68 lots, 1,972 shares, ₹995,860
  • B-HNI (Min): 69 lots, 2,001 shares, ₹1,010,505

IRM Energy Limited IPO Financial Information 

IRM Energy Limited’s revenue increased by 90.3% and profit after tax (PAT) dropped by -50.69% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended30 Jun 202331 Mar 202331 Mar 202231 Mar 202131 Mar 2020
Assets838.21792.90554.80338.11267.16
Revenue248.631,045.10549.19212.54166.13
Profit After Tax26.9163.14128.0334.8921.07
Net Worth373.33346.42243.72117.6074.74
Reserves and Surplus193.3067.5730.31
Total Borrowing321.24303.83202.59163.35146.74
Amount in ₹ Crore

IRM Energy Limited Financial Line Graph:

Line Graph Example

About IRM Energy Limited

Established in 2015, IRM Energy Limited is a significant player in the gas distribution sector. The company focuses on developing, operating, and expanding local natural gas distribution networks. With a commitment to value-driven energy solutions, IRM Energy serves a diverse customer base, including industrial, commercial, domestic, and automobile clients.

The company has established a presence in various regions, including Banaskantha District in Gujarat, Fatehgarh Sahib in Punjab, and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat. IRM Energy caters to the natural gas needs of 48,172 domestic customers, 179 industrial units, and 248 commercial clients.

In recognition of its contributions to the industry, the company received the “City Gas Distribution-Growing Company of the Year 2020” award from the Federation of Indian Petroleum Industries. As of September 2022, IRM Energy operates 216 CNG gas stations across its operational areas.

IRM Energy IPO Objectives

The company intends to utilize the net proceeds from the IPO for the following purposes:

  1. Funding Capital Expenditure: To finance the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in Fiscal 2024, Fiscal 2025, and Fiscal 2026.
  2. Repayment of Borrowings: To prepay or repay all or a portion of certain outstanding borrowings availed by the company.
  3. General Corporate Purposes: To support the company’s general corporate requirements.

IRM Energy IPO Registrar

IRM Energy IPO Lead Managers

  • Hdfc Bank Limited
  • Bob Capital Markets Limited

Conclusion

The IRM Energy Limited IPO offers investors an opportunity to be a part of a company that plays a crucial role in providing clean and efficient natural gas solutions. With a commitment to expanding its reach and serving a diverse customer base, IRM Energy is well-positioned to capitalize on the growing demand for sustainable energy sources in India. As always, it’s essential for potential investors to carefully analyze the prospectus and market conditions before making any investment decisions.

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