With operations in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu), IRM Energy is a city gas distribution firm in India. Its activities include laying, constructing, running, and expanding the city or local natural gas distribution network. IRM Energy IPO will hit the stock market in April 2023.
Table of Contents
About IRM Energy
Since 2017, they have improved their competency as a CGD company by developing their existing GAs. They are an integrated, value-driven energy enterprise that develops natural gas distribution projects for industrial, commercial, domestic, & automotive customers in the geographical areas assigned to them.
They concentrate on providing consumers in their GAs with the energy they require through their pipelines and CNG station network at a reasonable cost while upholding strict safety standards.
They provide PNG for personal houses as well as for commercial and industrial units, and also CNG for use in motor vehicles. One of the safest, cleanest, and most affordable fuels for homes, businesses, and industries, and also for the needs of the transportation sector, is provided by them.
Business Model
The Federation of Indian Petroleum Industries named them the “City Gas Distribution – Growing Company of the Year 2020.”
They can provide gas to their PNG industrial clients at a price that is viable in the market thanks to their competitive gas pricing and streamlined operational expense, allowing the PNG industrial customers to move from other alternative fuels to natural gas.
They offer a more dependable and environmentally friendly alternative fuel to all of their customer groups, which has allowed them to reach out to untapped markets in the relevant GAs.
Additionally, they have built safety management systems that ensure the safe, dependable, and continuous provision of natural gas to its consumers as part of their commitment to health and safety.
Clientle
To serve customers, IRM Energy Limited have established a network of 56 CNG filling stations. As of September 30, 2022, 88 industrial customers, 96 industrial customers, 59 industrial customers, and 30 industrial customers, they served 168 industrial customers, 88 industrial customers, 96 industrial customers, 59 industrial customers, and 30 industrial customers, respectively.
Furthermore, IRM Energy served 202 commercial custoinmers, 145 commercial customers, 179 commercial customers, 125 commercial customers, and 90 commercial customers on September 30, 2022, September 30, 2021, March 31, 2022, and March 31, 2020, respectively.
43,183 domestic customers, 29,237 domestic customers, 35,725 domestic customers, 25,626 domestic customers, and 18,382 domestic customers as of September 30, 2022, September 30, 2021, March 31, 2022, and March 31, 2020, respectively.
IRM Energy IPO
IRM Energy Limited, headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 10,100,000 equity shares on 14 December 2022.
The offer includes a fresh issue of INR 10,100,000 equity shares and there is no offer for sale (OFS) by the promoters mentioned in the DRHP. They are looking for any Pre-IPO placement of INR 2,000,000 equity shares in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | ||
| Total Assets | 730.26 | 554.80 | 338.11 | 267.16 | |
| Total Revenue | 506.87 | 549.19 | 212.54 | 166.13 | |
| Profit After Tax | 32.07 | 64.52 | 85.01 | 35.50 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 8.60 | 8.60 | 3 |
| Financial Year 2021 | 12.39 | 12.39 | 2 |
| Financial Year 2022 | 43.88 | 43.88 | 1 |
| Weighted Average | 27.50 | 27.50 | |
| 30 June 2022 | 13.32 | 13.32 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
IRM Energy limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- Exclusive supply of CNG and PNG in the awarded GAs.
- CGD business innovation and operation success.
- CNG and PNG distribution network with a diverse customer portfolio.
- Strong parentage, an experienced board and management team, and an effective execution team.
- Adoption of technology and digital initiatives for more efficient and effective operations.
- Connectivity to gas pipelines, as well as the establishment of cost-effective gas sourcing arrangements.
- Strong financial performance, as well as consistent growth and profitability, are backed up by healthy operating efficiency and favorable regulations.
IRM Energy Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Gujarat Gas Limited | 27.71 |
| 2 | 2 | Indraprastha Gas Limited | 20.38 |
| 3 | 10 | Mahanagar Gas Limited | 14.60 |
| 4 | 1 | Adani Total Gas Limited | 798.03 |
- All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
- The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on December 08, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.
IRM Energy IPO Details
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 10,100,000 shares |
| Fresh Issue | 10,100,000 shares |
| Offer for Sale | – |
IRM Energy IPO Date
IRM Energy Limited IPO opening date is April 2023, and the closing date is April 2023. The IRM Energy issue may list in April 2023.
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Basis of Allotment Date | April 2023 |
| Initiation of Refunds | April 2023 |
| Credit of Shares to Demat Account | April 2023 |
| IPO Listing Date | April 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
IRM Energy IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of IRM Energy IPO.
IRM Energy IPO GMP
IRM Energy Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
IRM Energy Limited IPO Review
IRM Energy Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of IRM Energy IPO is good or bad.
IRM Energy Limited IPO Risk
- They rely on third parties for natural gas sourcing and transportation. They are reliant on government policies for natural gas allocation and the cost of gas supplied to their CNG and domestic PNG customers (the “Priority Sector”).
- Any failure in the network infrastructure through which they source and supply natural gas could have a negative impact on their business, reputation, & cash flows.
- Their operations are limited to defined geographical boundaries, and the natural gas requirements in these regions may be affected by a variety of factors beyond their control, which may have a negative impact on business operations & cash flows.
- They may face risks as a result of delays in the construction & commissioning of their existing and new gas pipelines.
Other Threats
- While gas supply is benchmarked to global indexes in USD, the Company’s revenues are in INR. As a result, their cash flow is indirectly affected by currency rate fluctuations.
- Any delays in the commissioning of new CNG filling stations could have a negative impact on our business, prospects, operating results, and cash flows.
- Advances in alternative energy sources or the availability of cost-effective alternative fuels could have a negative impact on their business.
- Their CNG business relies on OMCs and third-party dealers to operate CNG filling stations. Any disagreement with such OMCs or third-party dealers could have a negative impact on their business.
- They will be required to make capital investments for infrastructure rollout over a long period of time.
IRM Energy Limited IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this IRM Energy IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
IRM Energy Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| April 2023 | 1 | |||||
| April 2023 | 2 | |||||
| April 2023 | 3 |
IRM Energy Limited Management
They have the strong parentage of an Indian multinational entity, Cadila Pharmaceuticals Limited, which has a legacy in the domestic pharmaceutical industry dating back over three decades. Cadila Pharma controls 49.50% of the company’s equity shares as of the date of this DRHP.
They believe that Cadila Pharma’s strategic and financial support, combined with their three decades of experience in the domestic pharmaceutical industry, has significantly aided them in overcoming certain entry barriers, such as the requirement of large investments, among others.
Their experienced board of directors is well-equipped with diverse experience for strategic guidance and insights for operational growth. They are led by a qualified, experienced, & trustworthy senior management team that has been with the company since its inception.
IRM Energy Limited‘ Promoters
- Dr. Rajiv Indravadan Modi
- Cadila Pharmaceuticals Limited
- IRM Trust
Promoters Shareholder’s Holding
| Pre Issue Share Holding | 67.94% |
| Post Issue Share Holding |
IRM Energy Limited Prospectus
Contact Details
IRM Energy Limited
4th Floor, Block 8, Magnet
Corporate Park, Near Sola
Bridge, S.G. Highway,
Ahmedabad – 380 054,
Gujarat
Email: [email protected]
Telephone: +91 79490 31500
Website: www.irmenergy.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg Vikhroli West Mumbai – 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- HDFC Bank Limited
- BOB Capital Markets Limited
We hope we are able to answer all your questions about IRM Energy IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
IRM Energy Limited IPO Opening Date?
IRM Energy Limited IPO will open in April 2023.
IRM Energy Limited IPO Listing Date?
IRM Energy Limited IPO will list in April 2023.
IRM Energy IPO GMP Today?
IRM Energy IPO Grey Market Premium is INR 0 .
IRM Energy Limited IPO Allotment Date?
IRM Energy Limited IPO basis of allotment will be in April 2023.
Lot size for IRM Energy Limited IPO?
Lot size for IRM Energy Limited IPO is 0.
