Cadila Pharmaceuticals-backed IRM Energy's initial public offering (IPO) opened on Tuesday, October 17, 2023 and will remain open until October 20. The company, which is promoted by Cadila Pharmaceuticals Limited, Dr. Rajiv Indravadan Modi, and IRM Trust, is planning to raise ₹545.40 crore ($73 million) through the fresh issue of 1.08 crore equity shares. The shares are priced between ₹480 and ₹505 each, with a minimum bid of 29 shares required for retail investors.
The IPO has been managed by HDFC Bank Ltd and Bob Capital Markets Ltd, with Link Intime India Private Ltd serving as the registrar. Before the IPO opening, IRM Energy secured ₹160.35 crore from anchor investors. The company reserves 50% of the issue for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
IRM Energy reported a revenue increase of 90.3% between the financial years ending March 31, 2023, and March 31, 2022. However, profit after tax during this period decreased by 50.69%. For the June quarter of 2023, the company saw a 6% rise in revenue to ₹245 crore and a surge in net profit by 31% to ₹26.9 crore.
The proceeds from the IPO will be used to fund city gas distribution network development in Namakkal and Tiruchirappalli in Tamil Nadu, prepay outstanding borrowings amounting to around ₹135 crore, and cover general corporate expenses.
The company holds exclusive CNG and PNG distribution rights in specific areas and is focusing on transitioning to a gas-based economy with a robust CNG and PNG distribution network. It aims to expand its business in the Tamil Nadu market and serves a diverse customer base including industrial, commercial, and domestic customers.
Shares are expected to be allotted on October 27, with refunds initiated on the same day and credited to demat accounts on October 30. The shares are expected to be listed on BSE and NSE on October 31. Based on the current Grey Market Premium (GMP) of ₹70 per share, the estimated listing price is ₹575 per share.
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