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.