City gas distribution company IRM Energy Limited has scheduled its debut Initial Public Offering (IPO) for launch on Wednesday, October 18, 2023. The firm has established a price band of ₹480 to ₹505 per equity share for the public offering, which will conclude on Friday, October 20, 2023.
What Happened: IRM Energy plans to issue 1,08,00,000 fresh equity shares, each with a face value of ₹10. No provision has been made for an offer for sale component. A portion has been reserved for eligible employees, who will be offered a discount of ₹48 per equity share.
The funds raised, totalling approximately ₹307.26 crore, will be used for the development of the city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu. An additional ₹135 crore will be allocated towards prepayment or repayment of certain outstanding company borrowings and for general corporate purposes.
The company's revenue from operations increased by 6.51% from ₹230.27 crore for the three months ended June 30, 2022, to ₹245.25 crore for the three months ended June 30, 2023, primarily due to an increase in the sale of compressed natural gas, piped natural gas and increase in connection income and other operating revenue. Whereas, profit after tax increased by 31.01% from ₹20.54 crore in the three months ended June 30, 2022, to ₹26.91 crore in the three months ended June 30, 2023.
Revenue for FY23 grew 90.27% to ₹1,039.13 crore from ₹546.14 crore for FY22 and profit after tax fell 50.68% to ₹63.15 crore for FY23 against ₹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.
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With a vast network across Gujarat, Punjab, Daman and Diu, and Tamil Nadu, IRM Energy serves a diverse range of customers. As of October 9, 2023, the company operated 69 CNG filling stations. The company also recently announced a strategic partnership with Japan’s Shizuoka Gas Co. Ltd to infuse capital through a private placement in IRMEL. It has also signed an MoU with Mindra EV Private Limited to establish EV charging infrastructure at select stations over the next five years.
The equity shares of the IPO are planned to be listed on the BSE and NSE. HDFC Bank Limited, BOB Capital Markets Limited, and Link Intime India Private Limited are the lead managers and registrar to the offer, respectively.
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