Upcoming IPO - IRM Energy

About Company’s Business:

The company is a City Gas Distribution (“CGD”) firm based in India, operating in multiple regions including Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), as well as Namakkal & Tiruchirappalli (Tamil Nadu). Its primary focus is on the construction, management, and expansion of local and urban natural gas distribution networks. As an integrated energy enterprise committed to delivering value, the company undertakes natural gas distribution projects within the geographical areas (“GAs”) assigned to it, catering to industrial, commercial, domestic, and automotive clients. The company has steadily developed its expertise as a CGD provider by actively growing its GAs since 2017, as reported by CRISIL.

About the Industry:

In India, the consumption of natural gas experienced a compound annual growth rate (CAGR) of 3.8% between Fiscals 2016 and 2020, reaching approximately 176 MMSCMD in Fiscal 2020. It is anticipated that the demand for natural gas from the City Gas Distribution (CGD) sector will exhibit a CAGR of 19-20% between Fiscals 2023 and 2030, ultimately reaching 117-120 MMSCMD. Within this period, each sub-segment, including Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) for domestic and industrial use, is expected to witness substantial growth, particularly due to the inclusion of new cities in the gas distribution network. The expansion of natural gas usage in the PNG segment is projected to be driven significantly by increased penetration. This information is sourced from the CRISIL Report.

Key Financial Information:

Particulars As of June 30, 2023 As of June 30, 2022 As of March 31, 2023 As of March 31, 2022 As of March 31, 2021
(A) Equity Share Capital 302.60 293.70 302.60 293.70 289.99
(B) Net Worth 3,733.26 2,642.65 3,464.23 2,437.20 1,176.04
(C) Revenue from Operations 2,452.47 2,302.67 10,391.35 5,461.43 2,118.09
(D) Restated Profit for the Year/Period 269.06 205.45 631.46 1,280.28 348.89
(E) Earnings per Equity Share - Basic 8.89 7.00 20.93 43.88 12.39
(E) Earnings per Equity Share - Diluted 8.89 7.00 20.93 43.88 12.39
(F) Net Asset Value per Equity Share 123.38 89.98 114.48 82.98 40.55
(G) Total Borrowings 3,212.41 2,053.09 3,038.34 2,025.91 1,633.51
Please note that the values are in millions (unless specified otherwise).

Objective of the Issue:

  1. Funding capital expenditure requirements for development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in Fiscal 2024, Fiscal 2025, Fiscal 2026, and Fiscal 2027.
  2. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company.
  3. General corporate purposes.

For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.

Important information regarding the IPO
Open Date Wednesday, October 18, 2023
Close Date Friday, October 20, 2023
Issue Size ₹545.40 crores
Price ₹480 to ₹505 per share
Lot Size 29 shares
Basis of Allotment Friday, October 27, 2023
Initiation of Refunds Friday, October 27, 2023
Credit of Shares to Demat Monday, October 30, 2023
Listing Date Tuesday, October 31, 2023

How to apply for this IPO?

You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.

Quick Apply for the IPO here!

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