IRM Energy, an Indian energy company, has announced its initial public offering (IPO) to run from Tuesday to Thursday this week. The IPO, managed by HDFC Bank, BoB Capital Markets, and Link Intime as registrar, is set to raise INR 545.4 crore ($73 million) with shares priced between INR 480-505.
The company's operational revenue witnessed a surge in FY23, reaching INR 1,039.14 crore. This increase was largely attributed to the sales of goods which amounted to INR 1,035.24 crore within the same fiscal year. Notably, Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) sales contributed significantly to this figure.
Despite the rise in operational revenue, IRM Energy reported a decrease in profit after tax (PAT) for FY24, which fell to INR 63.15 crore. The company also lagged in EBITDA growth, return on capital employed (ROCE), and return on equity (ROE), compared to its industry peers such as Gujarat Gas, Indraprastha Gas, and Adani Total Gas.
However, IRM Energy outperformed these companies in volume growth for FY23, recording a substantial increase of 30.04%.
Upon completion of the IPO, the promoter's stake in the company will reduce from 67.94% to 50.07%. This move will subsequently increase public shareholding to 49.93%, allowing for greater investor participation in the company's future growth and development.
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