IRM Energy collects Rs 160 crore: IRM Energy Ltd., a firm that distributes city gas, announced on Tuesday that it has raised more than Rs 160 crore from anchor investors in advance of its inaugural share sale, which begins on Wednesday. According to a circular posted on the BSE website, the business has chosen to distribute 31.75 lakh equity shares to 12 funds for a total transaction value of Rs 160.35 crore at a price of Rs 505 per share, which is also the upper end of the pricing range.
The anchor investors included both international and local organisations, including Quant Mutual Fund, SBI General Insurance Company, HDFC Life Insurance Company, DSP MF, ITI MF, BOI MF, Nippon AIF, and PNB Metlife. A fresh issue of up to 1.08 crore equity shares would be made in the IPO. The sale also contains a reservation for subscription by qualified personnel, who will receive a discount of Rs 48 per equity share.
The company’s promoters currently possess 67.94% of the shares, with Cadila Pharmaceuticals holding the majority (59.5%) and IRM Trust, through its managing trustee Rajiv Indravadan Modi, holding the remaining shares. The public subscription period for the issuance, with a price range of Rs 480-505 per share, will begin on October 18 and end on October 20.
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Ahead of IPO, IRM Energy collects Rs 160 crore
At the lower and upper ends of the price band, respectively, the company will raise Rs 518.4 crore and Rs 545.4 crore. In Tamil Nadu, at Namakkal and Tiruchirappalli, the development of the city gas distribution network will require capital expenditures totaling Rs 307.26 crore, and Rs 135 crore will be utilised to pay off debt. In addition, a share will be used for general business needs. Investors may place a minimum bid of 29 equity shares and then bid in multiples of 29 shares. IRM Energy offers both compressed natural gas (CNG) and natural gas through pipes.
As of June 2023, it operated in the states of Gujarat, Punjab, and Tamil Nadu and provided services to 52,454 home users, 184 industrial clients, and 269 business clients. It currently operates a network of 69 CNG filling stations, including two that are owned and run by the company, 36 that are owned and run by dealers, and 31 that are owned and run by oil marketing organisations. From April to June 2023, the company’s operating revenue increased by 6.51% to Rs 245.25 crore from Rs 230.27 crore. In addition, profit after tax increased 31%, from Rs 20.54 crore in the quarter ending June 30, 2022 to Rs 26.91 crore in the period.
The book-running lead managers for the offer are HDFC Bank and BOB Capital Markets. It is proposed that the company’s equity shares list on the BSE and the NSE.
