IRM Energy Limited is a gas distribution company that is involved in developing, operating, and expanding of local natural gas distribution network. The company is a subsidiary of Cadila Pharmaceuticals Limited and is promoted by Dr. Rajiv Indravadan Modi, Cadila Pharmaceuticals Limited, and IRM Trust.
The company is planning to raise Rs 545.40 crores through an initial public offering (IPO) of 10.8 million shares, which is entirely a fresh issue. The IPO will open for subscription on October 18, 2023, and close on October 20, 2023. The price band for the IPO has been fixed at Rs 480 to Rs 505 per share, with a face value of Rs 10 per share.
The minimum lot size for an application is 29 shares, and the maximum lot size is 377 shares for retail investors. The issue will be allocated in the proportion of 50% to qualified institutional buyers (QIBs), 35% to retail investors, and 15% to non-institutional investors (NIIs).
The company intends to use the net proceeds from the IPO to fund its capital expenditure requirements for the expansion of its city gas distribution network, repayment or prepayment of certain borrowings, and general corporate purposes.
The company has appointed HDFC Bank Limited and BOB Capital Markets Limited as the book-running lead managers for the IPO, and Link Intime India Private Limited as the registrar for the issue.
The company claims to have outperformed the industry average in terms of volume and operating profit in the last two fiscal years and expects to benefit from the increasing demand for natural gas in India. The company has exclusive rights to supply piped natural gas (PNG) and compressed natural gas (CNG) in six geographical areas across Gujarat, Rajasthan, Uttar Pradesh, and Assam.
As of March 31, 2023, the company had a network of 2,271 km of steel pipeline and 2,015 km of polyethylene pipeline, serving 72,621 domestic customers, 1,113 commercial customers, 36 industrial customers, and 32 CNG stations.
The allotment status for the IRM Energy IPO will be announced on October 27, 2023, and the listing date is expected to be October 31, 2023. The investors can check their allotment status on the website of the registrar or through their application number or PAN number. The listing price and the holding period return will depend on the market conditions and the investor sentiment at the time of listing.
This post IRM Energy IPO: Key Details and Subscription Status was originally published at Finance Crave
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