IRM Energy IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Oct 20, 2023IRM energy is part of Cadila Pharmaceuticals Limited and has been a leading provider of CGD which is city gas distribution with an experience of over 6 years of in developing citywide gas distribution networks and connecting multiple customer segments to a single geographical area (GA).
This review highlights the details of the recently announced news on the IRM Energy IPO.
Currently, the company has only filed for the DRHP with Sebi on December 14th, 2022. Read ahead to know about the company, IPO details, GMP, IRM Energy IPO Review, and the market’s reaction to the upcoming IPO.
| Face Value | Rs 10 |
| Price Band | Rs 480 to Rs 505 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 29 Shares |
| Listing Date | October 31, 2023 |
| Offer for Sale | Rs NA Crore |
| Fresh Issue | Rs 545.40 Crore |
| IPO Size | Rs 545.40 Crore |
| Tick Size | 1 |
IRM Energy IPO Overview
IRM energy is the arm of Cadila Pharmaceutical Limited which is an Ahmedabad-based pharmaceutical company.
Recently on December 14, 2022, the subsidiary company filed the draft red herring prospectus with the Securities and Exchange Board of India for the issue of initial public offerings. Through this IRM Energy IPO, the company aims to raise a fund of Rs 700 crores.
IRM Energy IPO Important Dates
| Events | Date |
| IPO Opening Date | October 18, 2023 |
| IPO Closing Date | October 20, 2023 |
| Basis of Allotment Finalization | October 27, 2023 |
| Refunds Initiation | October 27, 2023 |
| Credit of Shares to Demat Account | October 30, 2023 |
| Share Listing Date | October 31, 2023 |
As the company has recently filed for IPO DRHP, there is no relevant data around the bidding dates. For any new investor, the bidding dates are the open and close dates of subscription for the IPO.
Post the bidding dates, next comes the allotment dates and the refund dates. The refund date is the date on which the oversubscribed shares will get refunded.
As and when these IRM Energy IPO dates get updated the same will be shared here.
IRM Energy IPO Price, Size, Share Offerings
| Face Value | Rs 10 |
| Price Band | Rs 480 to Rs 505 |
| Offer for Sale | Rs NA Crore |
| Fresh Issue | Rs 545.40 Crore |
| IPO Size | Rs 545.40 Crore |
The IRM Energy IPO size of the listing will be a mix of fresh issue and offer for sale. The issue will be listed in both stock exchanges, NSE and BSE.
As for the data on the issue size, currently, the only part revealed in the DRHP is that the company is going to raise funds through a fresh issue of up to 1.01 crore equity shares.
The face value of the issue will be Rs 10 per share. As the IRM Energy IPO price band gets revealed, the details will be shared in the above table.
IRM Energy IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| Not Disclosed | |||
The grey market is not a regulated and legal trading market. In the case of IPOs, grey market trading refers to buying and selling off the upcoming IPOs at a premium rate over the price bracket.
The reason why investors tend to check the grey market premium understands hey demand of the company share market in general.
If the demand is high, the premium rise meaning that the shares are valuable enough to be bought and sold at a higher rate. This means that if the upcoming IPO has a higher IRM Energy IPO GMP, it means that it will be a good investment.
IRM Energy IPO Subscription Status
| Day / Date | QIB | NII | RII | Emp | Total Subscription |
| 1st Day – 18th Oct | 1.07x | 2.61x | 1.82x | 0.38x | 1.74x |
| 2nd Day – 19th Oct | 1.18x | 9.12x | 4.41x | 0.95x | 4.40x |
| 3rd Day – 20th Oct | 44.73x | 48.34x | 9.29x | 2.05x | 27.05x |
| Shares Offered or Net Issue | 2,116,800 | 1,587,600 | 3,704,400 | 216,000 | 10,800,000 |
Once the IPO goes live, the investors will be able to check the IRM Energy IPO Subscription status here and see how many shares are yet available for subscription.
Usually, the 3-day bidding dates are enough for not just a complete subscription but usually, it goes to oversubscription.
IRM Energy IPO Allotment Status
The allotment pre-decided by the company is as follows: the Qualified Institutional Buyers will have a reserved 50% of the issued shared.
The Non-institutional Investors or HNIs will be offered no more than 15% and lastly, the Retail Investors will be allotted the remaining 35%.
The IRM Energy IPO Allotment will give us information on how the company allots the shares to the investors. It can be that the oversubscribed shares are either refunded or allotted on a pro-rata basis.
Click here to get live action on the allotment status of the IPO.
IRM Energy IPO Live Performance
When the IPO gets launched, the link here can be used to keep track of the live IRM Energy IPO performance of the equity shares in the trading market. This will also provide insights into the IRM Energy IPO share price
Subscribe to IRM Energy IPO – Open Free Demat Account Now!
Latest IRM Energy IPO News
Currently, the only IRM Energy IPO news circulating about the IPO is about the company filing for its DRHP and the financial performance which solidifies the investments of the investors.
The more details get revealed on the proceedings, the more buzz will find its place on the market about the private company turning public.
IRM Energy – Company Review
IRM Energy Limited (IRMEL) is a market-leading City Gas Distribution (CGD) business with more than six years of experience in building strong city gas distribution networks and connecting various customer segments in our existing Geographical Areas (GAs) of Banaskantha District in Gujarat, Fatehgarh Sahib in Punjab, and Diu & Gir-Somnath in the Union Territory of Daman & Diu and Gujarat.
The Petroleum & Natural Gas Regulatory Board (PNGRB) awarded IRM Energy Limited the exclusive rights in the 11th round of bidding to build the CGD infrastructure and provide natural gas in the Tamil Nadu state’s Tiruchirappalli & Namakkal district.
This expansion is one of the reasons for needing the public fund.
Products or Services
IRM Energy is an integrated provider of compressed natural gas and piped natural gas. It has primary operations in Punjab, Gujrat, and Tamil Nadu.
With their product and services, as of September 2022, they serve 43,183 Domestic Customers, 202 commercial customers, and 168 Industrial Customers.
Promoters and Holding
The promoters of the company are:
- Rajiv Indravadan Modi,
- Cadila Pharmaceuticals Limited, and
- IRM Trust
And the registrar of the IPO is Link Intime India Private Limited.
Is IRM Energy good for Investment?
The company has strong financial performance, making it ideal for taking the next step of growth and turning the private organization into a public company.
It has the support of market leaders in different industries and is run by seasoned core management who have a clear vision for the company’s future and currently it is the upcoming IRM Energy IPO.
IRM Energy Financial Statements
| Amount (in INR & Million) | |||||
| 30-Sep-22 | 30-Sep-21 | 31-Mar-22 | Mar-21 | 31-Mar-20 | |
| Assets | 7,302.61 | 4,406.20 | 5,548.04 | 3,381.10 | 2,671.57 |
| Revenue | 5,068.70 | 2,065.97 | 5,491.93 | 2,125.42 | 1,661.25 |
| Expense | 4,645.16 | 1,459.28 | 3,968.30 | 1,664.55 | 1,347.97 |
| Profit After Tax | 392.45 | 478.12 | 1,280.28 | 348.89 | 210.65 |
As the company prepares for the IRM Energy IPO, the company records an operating revenue increase significantly during the past year, rising from Rs 205.45 crore to Rs 504.12 crore in the six months that concluded on September 30, 2022.
Due to rising input gas costs, its profit after tax decreased 17.91% during the past six months to Rs 39.25 crore from Rs 47.81 crore the year prior.
As of September 2022, the company had successfully created a network of 56 CNG filling stations, comprising 2 that it owned and operated alone, 30 that it owned and operated through dealers, and 24 that it owned and operated through oil marketing firms.
| Earnings per Equity Share (in Million) | |||||
| 30-Sep-22 | 30-Sep-21 | 31-Mar-22 | Mar-21 | 31-Mar-20 | |
| Basic & Diluted | 13.32 | 16.49 | 43.88 | 12.39 | 8.60 |
IRM Energy IPO Review
According to a CRISIL report, the City Gas Distribution sector is set to grow at a CAGR of 15 to 16 percent between the fiscal year 2022 and 2030.
When a sector is growing by a 2-digit CAGR it means that it is a positive growth opportunity for any company operating in that sector.
This means that as IRM Energy IPO is ready to get launched in the upcoming years, the investors who become a part of this organization’s IP investment will also be able to grow their investment and receive bigger returns.
So, keep checking the IRM Energy IPO Review to receive updated news on the IPO dates, lot size, and price band.
IRM Energy IPO Details
Here are a few more details you need to know before investing in IRM Energy IPO –
IRM Energy IPO Issue Object
-
Funding capital expenditure requirements for the development of the City Gas Distribution network in the GeographicalAreas 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 our Company
-
General corporate purposes.
IRM Energy IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Exclusivity in CNG and PNG supply in the awarded GAs
-
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
-
Strong financial performance and consistent growth and profitability supported by healthy operating efficiency and favourable regulations.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 43.88 | 52.53 | 82.98 |
| 31-Mar-21 | 12.39 | 29.67 | – |
| Mar-20 | 8.60 | 28.19 | – |
IRM Energy IPO Lead Managers
Here is the list of Lead managers –
- HDFC Bank Limited
- BOB Capital Markets Limited
IRM Energy IPO Registrar to offer
Check out the details of the registrar here –
IRM Energy IPO – Other Details
- Statutory Auditor – Mukesh M. Shah & Co.
- Legal Counsel to the Company – Trilegal
- Bankers to the Company – Union Bank of India, Bank of Baroda, HDFC Bank Limited, Kotak Mahindra Bank Limited
IRM Energy IPO Verdict by Stock Brokers
The stock brokers are yet to provide any prominent verdict on the stocks as not much information is available on the IRM Energy IPO listing to analyze and share any thought process.
However, keep checking the review and news on the listing to stay updated
IRM Energy IPO – Conclusion
As stated in the IRM Energy IPO Review, the net proceeds of the IPO will be utilized in meeting the objective of repayment of certain outstanding borrowings of the company.
Along with funding the capital expenditure requirement of developing the CGD network in new geographical areas in the next 3 fiscal years.
Thus, if the company has expansion plans in the long-term goals, instead of just infusing cash into the business, the company is opting to go for an IPO and use the funds to develop the R&D team. These plans make the share of the company much more profitable.
To Subscribe to IRM Energy IPO – Open Demat Account Now!
IRM Energy IPO Review FAQs
Check out the FAQs on IRM Energy IPO –
What is the Issue Size of IRM Energy IPO?
The Company is making an initial public offer of 10,800,000 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of IRM Energy IPO?
The price band for this particular IPO ranges between Rs.NA to Rs. NA. As far as the face value of the share is concerned, it is Rs.10 per share.
What is the IRM Energy IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on October 18, 2023, while the closing date is set at October 20, 2023.
What is the IRM Energy IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on October 27, 2023, refund initiation is on October 27, 2023, credit of shares is on October 30, 2023, and share listing date is on October 31, 2023.
What is the IRM Energy IPO Listing Date?
Shares of this company shall be listed in the exchanges on October 31, 2023. The date, when the listing would be done, is stagnant on October 31, 2023.
Who is the Registrar of IRM Energy IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of IRM Energy IPO?
Here are the promoters of this IPO – DR.RAJIV INDRAVADAN MODI, CADILA PHARMACEUTICALS LIMITED AND IRM TRUST. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of IRM Energy?
They have obtained the GMP of this IPO and it is Rs. NA. Further insights into the Kostak rate and subject to sauda or SS are as well included in this report.
Is IRM Energy IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of IRM Energy Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2022 in Million is 1280.28, 2021 is 348.89, and 2020 is 210.65. PAT from Sep 2022 is 392.45.
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