IRM IPO: If you are also thinking of investing money in IPO, then there is a special opportunity for you, IRM ENERGY IPO opens tomorrow i.e. Wednesday 18 October for substations. Investors can invest in the IPO till October 20 i.e. Friday, with a price band of Rs 480 to Rs 505 per share.
The IRM Energy IPO tomorrow’s lot size is 29 equity shares and is available in the gray market at a premium of ₹ 80, which means investors can expect a 16 percent lower gain on the listing. Allocation of anchor investors for IRM Energy IPO has started today.
Description of IRM strengths
- A total of 10,800,000 equity shares were issued in the IRM Energy IPO.
- According to the Red Herring Prospectus (RHP), there is no offer for sale (OFS) material.
- For FY2023, price to earnings ratio is 22.93 times and cap value is 24.13 times on earnings per share (EPS) basis.
- The promoters of the company are Cadila Pharmaceuticals Limited, Dr. Rajeev Indravadan Modi and IRM Trust.
- Between the financial years ending March 31, 2023 and March 31, 2022, IRM Energy Ltd’s revenue grew by 90.3% and profit after tax (PT) declined by 50.69%.
Business of IRM Energy
IRM Energy, a gas distributor company, has business areas spread across Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu and Gir Somnath (UTs of Daman and Diu/Gujarat), and Namakkal and Tiruchirappalli (Tamil Nadu). Their business is to distribute natural gas to cities and local areas and is also responsible for its construction, management and expansion.
IRM Energy GMP
In FY 2023, IRM Energy’s company net profit was Rs 63.15 crore, down 50 percent, compared to Rs 128 crore in FY 2022. Despite this, the company’s revenue grew 90 percent to Rs 1,039 crore, from Rs 546.1 crore a year ago.
IRM Energy’s main competitors are Gujarat Gas, Indraprastha Gas, Mahanagar Gas, and Adani Total Gas. The promoters of the company are Rajeev Indrabadan Modi, Cadila Pharmaceuticals and IRM Trust, which together hold 67.94 per cent stake in the company.
It owns 28.65 percent in Enertech Distribution Management Company and 2.94 percent in Shizuoka Gas Company.
Allotment of shares may take place on October 27 and shares may reach investors’ accounts on October 30. The listing of the company is likely to happen on October 31. IRM Energy’s unlisted shares are trading at a premium of Rs 70 in the gray market, which means it could fetch a premium of Rs 70 after listing. Its maximum price range could be listed at Rs 575, which could be 13.86 percent higher than its IPO price.
Details of IRM Energy IPO
| Total IPO Size (Rs. Crore) | 545 |
| Offer for Sale (Tk. Crores) | , |
| New Issue (Tk. Crore) | 545 |
| Price Band (Rs.) | 480–505 |
| Membership date | October 18 to October 20, 2023 |
| Purpose of issue | For capex and debt repayment |
IRM Energy IPO – Lots of size and value
| application | a lot | share | Amount |
|---|---|---|---|
| retail (min) | 1 | 29 | 14,645 |
| retail (max) | 13 | 377 | 1,90,385 |
| S-HNI(min) | 14 | 406 | 2,05,030 |
| S-HNI(Maximum) | 68 | 1,972 | 9,95,860 |
| B-HNI(min) | 69 | 2,001 | 10,10,505 |
| IRM ENERGY LIMITED
4th Floor, Block 8, Magnet the phone: +917949031500 |
IRM Energy is the IPO Registrar
IRM Energy IPO Lead Manager
| 1. HDFC Bank Limited 2. BOB Capital Markets Limited |
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