🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

IRM Energy to launch IPO, aims to raise ₹545.4 crore

EditorAmbhini Aishwarya
Published 17/10/2023, 06:40
© Reuters.
IRME
-
IRME
-

India's IRM Energy has announced the opening of its initial public offering (IPO) for anchor investors today, Tuesday, with public subscriptions set to begin tomorrow and last until Friday, October 20, 2023. The company has plans to raise ₹545.4 crore ($73 million) by issuing 1.08 crore shares at a price range of ₹480-₹505 per share.

The funds raised will be allocated towards city gas distribution network development in Namakkal and Tiruchirappalli in Tamil Nadu, costing approximately ₹307.26 crore ($41 million). An additional 135 crore ($18 million) will be used for debt repayment, with the remaining proceeds dedicated to general corporate expenses. The minimum bid for investors is set at 29 equity shares (13,920), and the maximum bidding amount stands at 14,645.

IRM Energy operates in regions such as Banaskantha, Fatehgarh Sahib, Diu & Gir Somnath, Namakkal, and Tiruchirappalli. The company distributes CNG for motor vehicles and PNG for domestic households as well as commercial and industrial units.

The company's net profit experienced a significant dip over the last fiscal year, falling over 50% to 63.15 crore in FY23 from 128 crore in FY22. This decrease was largely due to increased stock purchase costs which rose from 249.2 crore in FY22 to 779.5 crore in FY23. Despite this setback, IRM Energy's revenue surged by 90% to 1,039 crore from 546.1 crore in FY22.

IRM Energy is promoted by Rajiv Indravadan Modi, Cadila Pharmaceuticals, and IRM Trust with a majority stake of 67.94%. The company competes with firms like Gujarat Gas, Indraprastha Gas, Mahanagar Gas, and Adani Total Gas. Its public shareholders include Enertech Distribution Management (28.65%) and Shizuoka Gas Company (2.94%).

The company has plans to allot IPO shares by October 27, transfer equity shares to eligible investors' demat accounts by October 30, and list on the stock market by October 31.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.