Irm Energy Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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IRM Energy

CMP

468.90

+1.75 (0.37%)

  • DRHP
₹505

Offer Price

₹ 544.36 Cr

Issue Size

₹ 14,645

Min Investment

27.05x

Times Subscribed

29

Lot size

Time Line

  • 18
    Oct 2023
    Open
  • 20
    Oct 2023
    Close
  • 23
    Oct 2023
    Finalisation of Basis of Allotment
  • 23
    Oct 2023
    Initiation of Refunds
  • 25
    Oct 2023
    Transfer of Shares to Demat Account
  • 26
    Oct 2023
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • 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.

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.

Strengths

  • 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.

Risks

  • 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.

Company Promoters

Promoters Holding

Issue For IPO
17.87%
Pre Holding

67.94%

Post Holding

50.07%

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 546.14 (157.80%) 1,039.14 (90.30%) 18.23 (-)
Gross Profit 546.14 (157.80%) 1,039.14 (90.30%) 18.23 (-)
Net Income 546.14 (157.80%) 1,039.14 (90.30%) 18.23 (-)
Assets 546.14 (157.80%) 1,039.14 (90.30%) 18.23 (-)
Liabilities 546.14 (157.80%) 1,039.14 (90.30%) 18.23 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
IRM Energy Ltd 1,039.14 63.15 694.93 328.29 18.23 20.87 107.51 1.75 0.43
Gujarat Gas Ltd 16,759.40 1,528.38 10,927.43 10,927.43 21.74 22.20 102.09 13.98 0.00
Indraprastha Gas Ltd 14,145.85 1,639.65 12,620.60 12,620.60 20.67 23.42 113.30 12.99 0.00
Mahanagar Gas Ltd 6,299.28 790.05 6,032.31 6,032.31 19.11 79.98 418.53 13.09 0.00
Adani Total Gas Ltd 4,378.19 546.49 5,645.30 5,645.30 18.58 4.97 26.74 9.68 0.47

Book Running Managers

Company Contact Information

4th Floor Block 8 Magnet,
Corporate Park S G Highway,
Ahmedabad - 380054
Phone : 91-7949031500 Email : investor.relations@irmenergy.com www.irmenergy.com

Offer Related Information

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... More

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