IRM Energy IPO: All You Need To Know
The issue will comprise fresh issue of 1.08 crore shares, and the price band is fixed in the range of Rs 480 to Rs 505 per share.
IRM Energy Ltd. will launch its initial public offering on Oct. 18. The city gas distribution company plans to raise Rs 545.40 crore via a fresh issue.
The issue will comprise fresh issue of 1.08 crore shares, and the price band is fixed in the range of Rs 480 to Rs 505 per share.
Issue Details
Anchor investor bidding date: Oct. 17.
Issue opens: Oct. 18.
Issue closes: Oct. 20.
Listing date: Oct. 31.
Total issue size: 1.08 crore shares.
Fresh issue size: 1.08 crore shares.
Total issue: Rs 545.40 crore.
Price band: Rs 480-505 per share.
Listing on: BSE, NSE.
Business
IRM Energy is a city gas distribution company in India, with operations in Gujarat, Punjab, Daman and Diu, and Tamil Nadu. It is engaged in the business of laying, building, operating, and expanding the city or local natural gas distribution network.
The company develops natural gas distribution projects in the geographical areas allotted to them for industrial, commercial, domestic and automobile customers.
Use Of Proceeds
Funding capital expenditure requirements for development of the city gas distribution network in Tamil Nadu: Rs 307.26 crore.
Prepayment/repayment of all, or a portion of certain outstanding borrowings: Rs 135 crore.
General corporate purposes.
Risk Factors
Dependent on third parties for sourcing and transportation of natural gas.
Transporting natural gas is hazardous and could result in accidents.
The company has issued equity shares during the preceding one year at a price that may be below the issue price.
Any breakdown in the network infrastructure, through which the company sources and supplies natural gas, could adversely affect the business.
The company typically requires 15-18 months to generate revenue in their GAs (gross assets). Any further delay in realising revenue may affect the company's projections, results of operations and cash flows.
Dependence on the government policies for allocation of natural gas and cost of gas supplied for the company's CNG and domestic PNG customers.
CNG business is dependent on OMCs and third-party dealers for the operation of CNG filling stations.
