IRM Energy Limited, a city gas distribution company, has fixed the price band at ₹480-505 for its forthcoming initial public offering, which will open on October 18. The issue will close on October 20, and investors can bid a minimum of 29 shares.
The Public Issue of face value of ₹10 is entirely a fresh issue of up to 1.08 crore equity shares worth ₹545 crore (at the upper end). The IPO also has a quota for employees, who can enjoy a discount of ₹48 per share.
- Also read: IRM Energy files DRHP for IPO
The company intends to utilise about ₹307.26 crore to fund capital expenditure requirements for the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in the coming years, while ₹135 crore will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company, and general corporate purpose.
The company has operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu), serving 184 industrial customers, 269 commercial customers, 52,454 domestic customers, as at June 30, 2023.
IRMEL had an established a network of 69 CNG filling stations, comprising 2 CNG stations owned and operated by the company, 36 CNG stations owned and operated by dealers, and 31 CNG stations owned and operated by oil marketing companies, according to a release issued by the company.
The company’s revenue grew 90.27 per cent in fiscal 2023 to ₹1,039.13 crore from ₹546.14 crore in the year-ago period. IRM Energy’s profit after tax fell 50.68 per cent to ₹63.15 crore in the financial year 2023 from ₹128.03 crore in the preceding year.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.