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IRM Energy plans to go public to expand city gas operations and repay debts.

IRM Energy to Launch IPO for City Gas Expansion and Debt Repayment

Cadila Pharmaceuticals-backed IRM Energy plans to launch its Initial Public Offering (IPO) between October 18 and October 20, 2023. The company aims to raise funds for city gas distribution network expansion in Namakkal and Tiruchirappalli, Tamil Nadu, as well as to repay existing borrowings. The IPO offers an issue size of ₹545.40 crore, with each share priced between ₹480-₹505. Additionally, employees have the opportunity to purchase shares at a discounted rate of ₹48 per share during the bidding process.

Expanding City Gas Distribution Network and Debt Repayment

The raised capital from the IPO will primarily be used to expand IRM Energy’s city gas distribution network in Namakkal and Tiruchirappalli, Tamil Nadu. With a focus on growth, the company aims to penetrate these regions and provide reliable gas supply to meet the increasing demand. Furthermore, a portion of the funds will be directed towards prepayment or repayment of existing borrowings, ensuring a stronger financial position for the company.

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Wide-ranging Network and Partnerships

IRM Energy operates a vast network of 69 Compressed Natural Gas (CNG) stations across India. Serving a diverse customer base, including industrial, commercial, domestic, and automobile sectors, the company has established a strong presence in various locations such as Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), and Diu & Gir-Somnath (Daman & Diu).

In addition to its network, IRM Energy has formed strategic partnerships with Shizuoka Gas Co., Farm Gas Pvt Ltd., Venuka Polymers Pvt Ltd., Ni Hon Cylinders Pvt Ltd., and Mindra EV Pvt Ltd. These collaborations aim to develop electric vehicle infrastructure, aligning with the growing market trends and environmental consciousness.

Financial Performance and Stakeholders

In the second quarter of 2023, IRM Energy reported a revenue growth of 6.51% and a significant increase in profit after tax by 31.01%. However, the profit for FY 2023 witnessed a decline of 50.68% due to increased input gas costs. Promoters Cadila Pharmaceuticals and IRM Trust collectively hold a stake of 67.94%, with Cadila holding 49.50%.

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Listed on BSE and NSE

The IPO is being managed by HDFC Bank Limited and BOB Capital Markets Limited, with Link Intime India Private Limited serving as the registrar. Following the IPO, the shares of IRM Energy will be listed on both the BSE and NSE, providing investors with an opportunity to participate in the company’s growth.

This article offers an overview of IRM Energy’s upcoming IPO, its expansion plans, and financial performance. Stay tuned for the latest updates on this exciting development!

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