IRM Energy IPO Opens Tomorrow: Know Issue Price, GMP, And Other Details Here

The initial public offering of IRM Energy will open for subscription on Wednesday. The Rs 545.4 crore public issue will close for subscription on October 20, 2023. This indicates that the last day to place bids for IRM Energy IPO is Friday. The offer will open for anchor investors today i..e October 17. The company has appointed HDFC Bank and BoB Capital Markets as the book-running managers for the issue, while Link Intime is the registrar.

IRM Energy is a Gujarat-based city gas distribution company and the company is looking to raise Rs 545.4 crore through this public issue. The price band of the issue has been fixed at Rs 480 to Rs 505 per share. According to IPO Watch IRM Energy IPO GMP today is Rs 80. The IPO of IRM Energy is a pure fresh issue of 1.08 crore shares and there is no offer-for-sale (OFS)component.

Of the total amount, the company intends to use Rs 307.26 crore for the development of the city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu. The company will also use the proceeds to pay debt amounting to Rs 135 crore and the remaining funds will be used for general corporate purposes

Important Details You Should Know About IRM Energy IPO:

IRM Energy IPO Price Band:

The price band of IRM Energy IPO has been fixed at Rs 480 to Rs 505 per share.

IRM Energy IPO Important Dates:

The offer will open for subscription on October 18 and the last day for bidding is October 20, 2023. IRM Energy is expected to finalize the basis of the allotment of IPO shares by October 27 and transfer equity shares to the demat accounts of eligible investors by October 30. Shares of IRM Energy will likely list on Indian bourses on October 31 in line with the T+6 timeline.

IRM Energy IPO Lot size

Investors can place bids for a minimum of 29 equity shares and in multiples of 29 thereafter. Thus, the minimum investment by retail investors will be Rs 13,920. Meanwhile, at the upper price band, the bidding amount will rise to Rs 14,645.

IRM Energy IPO GMP Today

According to IPO Watch IRM Energy IPO grey market premium (GMP) today is Rs 80.

Promoters

Rajiv Indravadan Modi, Cadila Pharmaceuticals, and IRM Trust are the promoters of the company. They together owned 67.94% of shares, as per the company's draft red herring prospectus (DRHP). The remaining stake is owned by public shareholders including Enertech Distribution Management with 28.65% shares and Shizuoka Gas Company with 2.94% shares.

IRM Energy's rivals in the market include Gujarat Gas, Indraprastha Gas, Mahanagar Gas, and Adani Total Gas.

About the company:

IRM Energy Limited (a group Company of Cadila Pharmaceuticals Ltd.) is an integrated value-driven energy enterprise developing Natural Gas distribution projects across various districts in the country for industrial, commercial, domestic, and automobile customers. The company is committed to contributing to the energy needs of its consumers.

IRM Energy Limited (IRMEL) is a leading City Gas Distribution (CGD) company with an experience of more than 6 years of in developing robust city gas distribution networks and connecting different customer segments in our existing Geographical Areas (GAs) of Banaskantha District in the state of Gujarat, Fatehgarh Sahib in the state of Punjab and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat. As of March 31, 2023, our supply network across all GAs consists of over 3,665 inch-km of pipelines, including approximately 3,000 inch-km of MDPE pipelines, and 665 inch-km of steel pipelines.

The city gas distribution company's net profit slumped over 50% to Rs 63.15 crore in FY23 compared to Rs 128 crore in FY22, due to a weak operating performance.