IRM Energy IPO: Firm mobilises ₹160 crore from anchor investors ahead of issue
- IRM Energy IPO: IRM Energy IPO will open for subscription on Wednesday, October 18 and close on Friday, October 20.
IRM Energy IPO: IRM Energy has raised ₹160.35 crore from anchor investors a day ahead of its IPO subscription opening for bidding. IRM Energy initial public offering (IPO) will open for subscription on Wednesday, October 18 and close on Friday, October 20. The city gas distributor has fixed the price band in the range of ₹480 to ₹505 per equity share of face value of ₹10.
Domestic investors who participated in the company via anchor book included DSP Mutual Fund, Quant Mutual Fund, SBI General Insurance Company, HDFC Life Insurance Company, Bank of India Mutual Fund, ITI Mutual Fund, Nippon India, and PNB Metlife India Insurance Company. The company's promoters are Cadila Pharmaceuticals Limited, Dr. Rajiv Indravadan Modi, and IRM Trust.
IRM Energy IPO details
IRM Energy IPO is completely a fresh issue of 10,800,000 equity share; there is no offer for sale (OFS) component. The IPO lot size is 29 equity shares and in multiples of 29 equity shares thereafter.
The book running lead managers of the IRM Energy IPO are HDFC Bank Ltd and Bob Capital Markets Ltd, and the registrar is Link Intime India Private Ltd.
IRM Energy IPO shares are likely to be listed on BSE and NSE on Tuesday, October 31. If in case, the company decides to switch to T+3 norm, the dates will get preponed. The IPO floor price is 48.0 times the face value of the equity shares and the cap price is 50.5 times the face value of the equity shares.
The company intends to use the net proceeds from the offering for the prepayment or repayment of all or a portion of certain outstanding borrowings obtained by the company, general corporate purposes, and funding certain gas distribution projects.
The company develops natural gas distribution projects for residential, commercial, industrial and automotive users within the designated geographic areas. IRM Energy has operations in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu).
Analysts recommend ‘Subscribe’
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, “IRM Energy IPO offers investors an opportunity to invest in a growing and emerging player in the city gas distribution segment., backed by Cadila Pharmaceuticals.'
Exclusive CNG and PNG rights, expansion plans, and a diverse customer base drive operational efficiency. IRMEL's vertical integration into renewables and strategic investments show foresight. Strong FY22 and FY23 revenue growth at 157 per cent/90 per cent is promising, according to Tapse.
‘’At ₹505 per share, the IPO values IRMEL at ₹2,072 crore with a P/E of 19.26x, similar to peers. With industries shifting to natural gas, IRMEL's market presence and strategy make it poised for success. We recommend "SUBSCRIBE" for long-term investors,'' he added.
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