IRM Energy Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹505
Per ShareLot Size
29 Shares
Minimum Investment
₹14,645
Issue Size
₹545.4 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
IRM Energy Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
67.94%
Promoter Holding (Post-Issue)
50.07%
Issue Type
Book Building
ISIN
INE07U701015
About the Company
IRM Energy Limited is a city gas distribution ("CGD") company in India, with operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu), engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network. The Company is an integrated value driven energy enterprise, developing natural gas distribution projects in the geographical areas ("GAs") allotted to it for industrial, commercial, domestic and automobile customers, and has built its competency as a CGD company by development of its existing GAs since 2017.
Industry Overview
Natural gas consumption in India clocked a compound annual growth rate (CAGR) of 3.8% between Fiscals 2016 and 2020, rising to ~176 MMSCMD in Fiscal 2020. Natural gas demand from the CGD sector to log 19-20% CAGR between Fiscals 2023 and 2030, growing to 117-120 MMSCMD. Demand from each sub-segment, including CNG and PNG (domestic and industrial) is likely to grow at a healthy pace over the forecast period, with the addition of new cities in the gas network. Increase in penetration is expected to be a key demand driver for the PNG segment.
Company History
IRM Energy Limited (the "Company") was incorporated as a private limited company in the name of `IRM Energy Private Limited' under the Companies Act, 2013 and a certificate of incorporation dated December 1, 2015, was issued by the Registrar of Companies, Gujarat at Ahmedabad ("RoC"). Subsequently, the Company was converted from a private limited company to a public limited company and the name of the Company was changed to `IRM Energy Limited' pursuant to a board resolution dated February 25, 2022, and a special resolution passed by our shareholders on March 8, 2022, consequent to which a fresh certificate of incorporation dated March 23, 2022, was issued by the RoC.
Products & Services
- IRM Energy Ltd is a city gas distribution ("CGD") company in India, engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network.
Growth Strategy
- Expand its presence in existing and newer GAs through an improved captive distribution channel.
- Infrastructure roll-out for development and operation of the new licensed GA of Namakkal & Tiruchirappalli, Tamil Nadu.
- Technology adoption to increase operational efficiency and enhance customer value.
- Business integration for transition into a complete energy solution provider.
- Continue to focus on sourcing reliable and cost-effective gas from leading Gas Suppliers.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 10,800,000* equity shares of face value of Rs. 10 each ("Equity Shares") of the company for cash at a price of Rs. 505 per equity share (including a share premium of Rs. 495 per equity share) ("Issue Price") aggregating to Rs. 544.36 crores* (the "Issue"). The issue includes a reservation of 216,000* equity shares for subscription by eligible employees (as defined herein) ("Employee Reservation Portion"). The issue less the employee reservation portion is referred to as the "Net Issue". The company in consultation with the book running lead managers, has offered a discount 9.50% of the issue price equivalent of Rs. 48.00 per equity share to eligible employees bidding in the employee reservation portion ("Employee Discount"). The issue and the net issue shall constitute 26.30% and 25.78%, respectively, of the post-issue paid-up equity share capital of the company. The face value of the equity shares is Rs. 10 each. The issue price is Rs. 505 per equity share which is 50.5 times the face value of the equity shares. *Subject to finalisation of basis of allotment.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Exclusivity in CNG and PNG supply in the awarded GAs.
- Successful development and operation of CGD business.
- Diverse customer portfolio and distribution network of CNG and PNG.
- Strong parentage, experienced board and management team and strong execution team.
- Technology adoption and digital initiatives for efficient and optimal operations.
- The company is dependent on third parties for sourcing and transportation of natural gas. As of June 30, 2023, its procured natural gas from seven suppliers which constituted 100.00% of its total quantity purchased. Any disruption in the receipt of such natural gas from these third parties, or delay or default in timely transportation of the natural gas could lead to a disruption or failure in the supply of natural gas by it, which could adversely affect its business, reputation, results of operations and cash flows.
- Transporting natural gas is hazardous and could result in accidents, which could adversely affect its reputation, business, financial condition, results of operations and cash flows.
- The company has issued Equity Shares during the preceding one year at a price that may be below the Issue Price.
- Cadila Pharmaceuticals Limited, one of its Promoters, has provided corporate guarantees to third parties for the loans availed by the Company. In the event the Company defaults on any of the loans availed, its Promoters will be liable for the repayment obligations. Further, the Company has provided corporate guarantees to third parties for the loans availed by its Associate Companies, Farm Gas Private Limited and Venuka Polymers Private Limited. In the event any of its Associate Companies default on any of the loans availed, the Company will be liable for the repayment obligations.
- Its CNG and industrial PNG supply operations account for 49.43 % and 46.86 % of its total operations (in terms of volume) for the three months ended June 30, 2023. The company is heavily reliant on its CNG and industrial PNG supply operations and any decrease in the sales, may have an adverse effect on the business, operation, financial condition and cash flows of the Company.