IRM Energy IPO GMP, review, Price, Date, Allotment

IRM Energy ipo Review: IRM Energy is coming up with its Initial Public Offering

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IRM Energy IPO – Details

 

IPO Opening Date 18 October 2023
IPO Closing Date 20 October 2023
Issue Type Book Built Issue IPO
Issue Size 1,08,00,000 Shares Worth ₹545.40 Crore

Fresh Issue: 1,08,00,000 Shares Worth ₹545.40 Crore

Face Value ₹10 per equity share
IPO Price ₹480 – ₹505
Market Lot 29 Shares
Min Order 29 Shares (1 Lot)
Employee Discount Rs 48
Listing At BSE, NSE
Register Link Intime India Private Ltd
QIB Shares Offered 50%
NII (HNI) Shares Offered 15%
Retail Shares Offered 35%

 

IRM Energy IPO – Date Schedule

 

IPO Open Date 18 October 2023
IPO Close Date 20 October 2023
Basis of Allotment Date 26 October 2023
Initiation of Refund 27 October 2023
Credit of Shares to Demat Account 30 October 2023
IPO Listing Date 31 October 2023

IRM Energy IPO- About The Company

 

IRM Energy Limited is a city gas distribution company. The company is engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network. IRM Energy is a value-driven energy enterprise serving industrial, commercial, domestic, and automobile customers.

The company has marked its presence in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir-Somnath (Union Territory of Daman & Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu).

The company is fulfilling the natural gas requirements of 48172 domestic clients, 179 industrial units, and 248 commercial clients.

The company has received an award of City Gas Distribution- Growing Company of the Year 2020 from the Federation of Indian Petroleum Industries.

As of September 2022, the company has 216 CNG gas stations across its operating geographical areas.

IRM Energy IPO GMP, review, Price, Date, Allotment
IRM Energy IPO

IRM Energy IPO- industry overview 

 

Natural gas consumption in India clocked a compound annual growth rate (CAGR) of 3.8% between fiscals 2016 and 2020, rising to ~176 MMSCMD in fiscal 2020. However, it dipped 5% in fiscal 2021 due to Covid-19 related challenges such as constrained transportation and industrial activities. Demand rose again ~4.8% in fiscal 2022. Growth was driven by higher offtake from end-use industries as economic and industrial activity and personal mobility gained traction. Segments such as CGD saw healthy growth. However, demand from the power segment declined as higher LNG prices affected the load factor (PLF) of gas-based power plants. Natural gas demand is estimated to increase in fiscal 2023, driven by strong growth in the CGD and fertiliser sectors.

Domestic natural gas production is expected to rise 5-7% to 123-128 MMSCMD during the forecast period of fiscals 2022 to 2027 driven by new production from the Daman and KG fields of ONGC and deep-water fields of ONGC and RIL on the eastern offshore. This will include production from the KG basin from Vashistha, KG-D5, R-cluster and satellite fields (a part of KG D6 field). The government’s steps to attract investments and improve production through the new gas-pricing mechanism are expected to expedite the development of new fields. The mechanism provides pricing freedom for gas produced from HPHT deep-water and ultra-deep-water areas. New discoveries are expected in KG basin post fiscal 2027 from RIL (UDW1 block under exploration), as well as ONGC (Clusters 1 & 3 of 98 DWN/2 block). Despite new discoveries, production will stagnate post fiscal 2027 as existing fields peak and start declining in terms of output

 

Object Of The Issue

 

  • Funding capital expenditure requirements for the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in Fiscal 2024, Fiscal 2025 and Fiscal 2026;
  • Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and
  • General corporate purposes.

 

IRM Energy Financial Performance

 

  FY 2020 FY 2021 FY 2022 FY 2023
Revenue 165.66 211.81 546.14 1,039.14
Expenses 134.80 166.46 396.83 970.66
Net income 21.03 34.87 128.04 63.08
Margin (%) 12.69 16.46 23.44 6.07

Figures in INR Crore

 

IRM Energy Valuations & Margins

 

FY 2020 FY 2021 FY 2022 FY 2023
EPS 8.60 12.39 43.88 20.93
PE ratio 22.93 – 24.13
RONW (%) 28.19 29.67 52.53 18.23
NAV 27.55 40.55 82.98 114.48
ROCE (%) 16.94 19.98 39.01 14.19
EBITDA (%) 33.67 38.49 39.61 12.14
Debt/Equity 1.80 1.17 0.59 0.86

As per Consolidated Financial Information

 

IRM Energy IPO Peer Comparison

 

S. No. Face Value Company Name PE
1 2 Gujarat Gas Limited 27.71
2 2 Indraprastha Gas Limited 20.38
3 10 Mahanagar Gas Limited 14.60
4 1 Adani Total Gas Limited 798.03

IRM Energy ipo – strengths 

 

  • Successful development and operation of CGD business;
  • Diverse customer portfolio and distribution network of CNG and PNG;
  • Strong parentage, experienced board and management team and strong execution team;
  • Technology adoption and digital initiatives for efficient and optimal operations;
  • Connectivity to gas pipelines and establishing cost-effective gas sourcing arrangements; and
  • Strong financial performance and consistent growth and profitability supported by healthy operating efficiency and favorable regulations.

 

 IRM Energy IPO GMP Today

 

Date Ipo gmp  Kostak Subject to Sauda
20 OCT INR 95

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IRM Energy IPO Allotment Status

IRM Energy IPO allotment will be available on Link Intime’s website. Click on this link to get allotment status.

 

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