IRM Energy Limited is coming up with an IPO of INR 545.40 crores. The offer includes a fresh issue of equity shares worth INR 545.40 crores. The company intends to utilize the raised funds towards the development of the city gas distribution network in a few areas of Tamil Nadu and repayment of the company’s borrowings in part or full.
IRM Energy Limited IPO – Important Details
| IRM Energy Limited IPO Date | October 18, 2023 to October 20, 2023 |
| IRM Energy Limited IPO Listing Date | October 26, 2023 |
| IRM Energy Limited IPO Price | INR 480 to 505 per share |
| IRM Energy Limited IPO Lot Size | 29 Shares |
| IRM Energy Limited IPO Total Issue Size | INR 545.40 crores |
| IRM Energy Limited IPO Basis of Allotment | October 27, 2023 |
| IRM Energy Limited IPO Initiation of Refunds | October 27, 2023 |
| IRM Energy Limited IPO Credit of Shares to Demat | October 30, 2023 |
| IRM Energy Limited IPO Issue Type | Book Built Issue IPO |
| IRM Energy Limited IPO Listing At | BSE, NSE |
IRM Energy Ltd IPO – Company Profile
The company is a city gas distribution (“CGD”) company in India, with operations a 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 supplies natural gas to two primary sets of customer segments. The customer segments are as set out below
CNG (Compressed Natural Gas): The customers include operators of public transport vehicles such as taxis, auto-rickshaws, and private vehicles such as cars, buses, light goods vehicles, and heavy goods vehicles.
PNG (Piped Natural Gas): The PNG customers are broadly classified into three segments, which are industrial PNG (small, medium, and large-sized enterprises), commercial PNG (such as hotels, restaurants, bakeries, hostels, and community halls), and domestic PNG (predominantly using PNG as cooking gas).
IRM Energy Ltd IPO – Fundamental Analysis
IRM Energy Limited exhibits remarkable revenue growth and historical profitability. However, the RoNW has shown fluctuations, and investors should assess the financials in conjunction with IPO terms and market conditions before making investment decisions. Consulting with financial experts is advisable.
Revenue Growth:
IRM Energy Limited has demonstrated impressive revenue growth, rising from ₹2,118.09 million in 2021 to ₹10,391.35 million in 2023.
Profitability:
The company’s profitability has been strong, with Profit and Loss After Tax increasing significantly from ₹348.71 million in 2021 to ₹630.83 million in 2023.
Return on Net Worth (RoNW):
While RoNW stood at 29.67% in 2021, it increased to 52.53% in 2022 before settling at 18.23% in 2023.
Earnings Per Share (EPS):
Diluted EPS has fluctuated but remained favorable, reaching ₹20.93 in 2023.
Net Asset Value (NAV) per Equity Share:
The NAV per Equity Share has consistently grown, reaching ₹114.82 in 2023.
Asset and Liability Management:
Total assets have increased from ₹3,381.10 million in 2021 to ₹7,929.02 million in 2023, indicating a robust asset base.
IRM Energy Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 2,118.09 | 5,461.43 | 10,391.35 |
| Equity (₹ in Million) | 1,176.04 | 2,437.20 | 3,464.27 |
| Expenses (₹ in Million) | 1,664.55 | 3,968.30 | 9,706.98 |
| Profit and Loss After Tax (₹ in Million) | 348.71 | 1,280.43 | 630.83 |
| RoNW (%) | 29.67% | 52.53% | 18.23% |
| Diluted EPS only (₹) | 12.39 | 43.88 | 20.93 |
| NAV per Equity Share (₹) | 41.76 | 83.52 | 114.82 |
| Total Assets (in million) | 3,381.10 | 5,548.04 | 7,929.02 |
| Total Liabilities (in million) | 2,205.06 | 3,110.84 | 4,464.75 |
IRM Energy IPO Peer Comparison
IRM Energy Limited exhibits robust financials with revenue of ₹9,800.89 million, a P/E ratio of NA, and a RoNW of 18.23%. Gujarat Gas and Indraprastha Gas show higher revenues, while IRM Energy boasts a competitive RoNW.
| Company | Revenue from operations (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| IRM Energy Limited (Consolidated) | 9,800.89 | 10 | NA | 20.93 | 20.93 | 18.23% | 114.48 |
| Gujarat Gas Limited (Consolidated) | 1,67,594.00 | 2 | 18.69% | 22.20 | 22.20 | 21.75% | 102.09 |
| Indraprastha Gas Limited (Consolidated) | 1,41,458.50 | 2 | 19.21% | 23.42 | 23.42 | 20.67% | 113.30 |
IRM Energy Ltd IPO Objective
IRM Energy Ltd plans to allocate funds for expanding its city gas distribution network in Tamil Nadu and repaying borrowings. This includes INR 307.26 crores for network development and INR 135 crores for debt repayment.
- Funding the development of the city gas distribution network: To expand the business operations, the company intends to set up infrastructure. The company has obtained authorization to lay, build, operate, and expand the CGD network for the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu). The company intends to utilize INR 307.26 crores for the said purpose.
- Repayment of the borrowings of the company: The company intends to certain borrowings of the company. The company intends to utilize INR 135 crores for the said purpose.
IRM Energy IPO Risks And Challenges
IRM Energy faces legal issues, regulatory actions, and tax litigations involving promoters that may impact operations and reputation. It’s dependent on government policies for gas allocation and cost. Increasing gas costs and competition from alternative fuels pose risks.
- There are two criminal litigations, 29 regulatory actions, and 12 material tax litigations involving the promoters. In the event of any adverse outcome, the company’s and the promoter’s business operations and reputation may be affected.
- The company is dependent on Government policies for the allocation of natural gas and the cost of gas supplied for the CNG and domestic PNG customers. Any reduction in the allocation of natural gas or any increase in the cost of gas could adversely affect the business, reputation, operations, and cash flows.
- The price of natural gas supplied depends on the cost of material consumed and certain external factors. A significant increase in the cost of material consumed or in these external factors will increase the price of gas supplied.
- Advancements in alternate sources of energy or the existence of cost-effective alternative fuels could adversely affect the business, results of operations, and cash flows.
IRM Energy Limited IPO – Industry & Market Potential
India is not only the third-largest energy consumer in the world after China and the US but also one of the fastest-growing energy consumers among its peers. Moreover, India has annually reiterated its commitment to reducing carbon emissions as pledged in the Paris Agreement. The share of natural gas in India’s primary energy mix has increased from 6.3% in 2020 to 6.5%. This is still way below the global average share of 24% in global energy use.
The Indian government has been consistently taking steps to develop natural gas infrastructure across the country. As of June 30, 2023, the country had 23,478 km of natural gas pipelines in operation. Since 2014, the government has taken various steps through policy interventions and monetary support to promote the use of natural gas in midstream and downstream sectors and maximize the coverage of natural gas among the country’s population.
IRM Energy Ltd IPO – Type of Offer
The proposal includes a new issuance of equity shares valued at INR 545.40 crores. The company plans to use these funds to expand the city gas distribution network in select Tamil Nadu regions and partially or fully repay its existing borrowings.
IRM Energy Ltd IPO Offer Size
The offering comprises new equity shares valued at INR 545.40 crores. These funds will be used to expand the city gas distribution network in specific Tamil Nadu regions and partially or entirely repay the company’s borrowings.
IRM Energy Ltd IPO Allotment Structure
IRM Energy’s IPO allocation includes 50% for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 35% for Retail Individual Investors, adhering to SEBI regulations for various investor categories.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for an IRM Energy Ltd IPO?
To apply for the IRM Energy Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the IRM Energy Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for IRM Energy Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check IRM Energy Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the IRM Energy Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the IRM Energy Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the IRM Energy Limited IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the IRM Energy Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
IRM Energy Limited Ltd IPO Offer Registrar
The registrar for the IRM Energy Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: 022-4918 6200
Email: [email protected]
Website: www.linkintime.co.in
IRM Energy Limited IPO FAQs
1. What is the allotment date of the IRM Energy Limited IPO?
The allotment date of the company’s shares is October 27, 2023.
2. What is the price band of the IRM Energy Limited IPO?
The price band is INR 480 to 505 per share.
3. What is the size of the IRM Energy Limited IPO?
The offering comprises new equity shares valued at INR 545.40 crores. These funds will be used to expand the city gas distribution network in specific Tamil Nadu regions and partially or entirely repay the company’s borrowings.
4. What is the listing date of the IRM Energy Limited IPO?
The listing date is October 26, 2023.
