IRM Energy IPO: Subscription Dates:
Gujarat-based energy enterprise IRM Energy is coming with an IPO whose opening date for subscribing to the issue is October 18, and the concluding day is October 20.
The offer will be opening for a day for anchor investors on October 17.
Issue Type:
This IPO is a book-built Issue type.
Price Range:
The company has fixed the price range at Rs 480-505 a share for its maiden public issue.
IPO Size:
IRM Energy, a group company of Cadila Pharmaceuticals, plans to pool in Rs 545.40 crore from the sale of 1.08 crore equity shares at the upper price band.
The existing shareholders are not diluting their shares, and the entire IPO consists of only a fresh issue of shares.
Lot Size:
Investors can bid for a minimum limit of 29 equity shares and in multiples of 29 shares thence.
The minimum application size for retail investors based on the upper band would be Rs 14,645 for 29 shares.
The maximum investment would reach Rs 1,90,385 for 377 shares, given the maximum investment limit for retail investors for IPO is within Rs 2 lakh.
Similarly, a Smaller-HNI can bid for a minimum of 406 shares, or 14 Lots at Rs 205,030 and a maximum of 68 Lots at Rs 9,95,860.
IPO Reservation:
The quota for employees has 2.16 lakh shares worth Rs 10.91 crore at a discount of Rs 48 per share to the final issue price.
Half of the quota of the net issue (stripping out employees’ shares) is for qualified institutional buyers (QIBs), 15 percent for high net-worth individuals (HNIs), and the remaining 35 percent for retail investors.
Utilization of Net Proceeds:
IRM Energy plans to spend Rs 307.26 crore funds from the net proceeds for the development of the city gas distribution network in the geographical areas of Namakkal and Tiruchirappalli (Tamil Nadu) in FY24 in the last four months, FY25, FY26, and the first half of FY27.
The proceeds will go into settling a debt of Rs 135 crore. The remaining corpus will be for general corporate purposes.
Business:
The energy enterprise has a natural gas distribution business in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu).
Promoters:
Dr Rajiv Indravadan Modi, Cadila Pharmaceuticals, and IRM Trust are promoters with 67.94 percent shares. Enertech Distribution Management has 28.65 percent, while Shizuoka Gas Company has 2.94 percent shares.
Competitors:
Gujarat Gas, Indraprastha Gas, Mahanagar Gas, and Adani Total Gas are direct competitors.
Listing:
The listing will happen in the T+6 timeline on the exchanges on October 31.
Finances:
Net profit for the fiscal 23 stood at Rs 63.15 crore from Rs 128 crore in the previous year.
Revenue from operations almost doubled to Rs 1,039 crore in FY23 from Rs 546.1 crore in the previous year.
In the first quarter of FY24, the net profit rose to Rs 26.9 crore from Rs 20.5 crore a year ago.
Revenue generated from operations during the same time marked an increase to Rs 245.2 crore from Rs 230.2 crore.