IRM Energy Limited, a city gas distribution company, engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network, has fixed the price band at ₹480 to ₹505 per Equity Share for its maiden initial public offer. The Initial Public Offering of the Company will open on Wednesday, October 18, 2023, for subscription and close on Friday, October 20, 2023. Investors can bid for a minimum of 29 Equity Shares and in multiples of 29 Equity Shares thereafter.
- Issue Opens on: Wednesday, October 18, 2023
- Issue Closes on: Friday, October 20, 2023
- Price Band: ₹480 to ₹505 per Equity Share
- Face Value: ₹ 10 per equity share
- Minimum Bid: 29 Equity Shares and multiples
The Public Issue of face value of ₹10 per Equity Share is entirely a fresh issue of equity shares up to 1,08,00,000 with no offer for sale component. The company intends to utilise about ₹307.26 crore for funding capital expenditure requirements for development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli in coming years, while ₹135 crore will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company, and general corporate purpose.
The company has operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu), serving 184 industrial customers, 269 commercial customers, 52,454 domestic customers, as at June 30, 2023. As of October 9, 2023, IRMEL had an established a network of 69 CNG filling stations, comprising 2 CNG stations owned and operated by the company, 36 CNG stations owned and operated by dealers, and 31 CNG stations owned and operated by oil marketing companies.
The company’s revenue from operations increased by 6.51% from Rs 230.27 crore for the three months ended June 30, 2022 to Rs 245.25 crore for the three months ended June 30, 2023. Whereas, profit after tax increased by 31.01% from Rs 20.54 crore in the three months ended June 30, 2022 to Rs 26.91 crore in the three months ended June 30, 2023 due to increase in total revenue. Revenue for fiscal 2023 grew 90.27% to Rs 1039.13 crore from Rs 546.14 crore for the Financial Year 2022 and profit after tax fell 50.68% to Rs 63.15 crore for the FY 2023 against Rs 128.03 crore in FY22, due to significant increase in input gas cost as well as due to lower profits earned by joint control entities.
