IRM Energy, incorporated in 2015, is a prominent player in India’s city gas distribution (CGD) sector. The company specializes in laying, building, operating, and expanding natural gas distribution networks in various geographical areas (GAs). Their projects cater to a diverse clientele, including industrial, commercial, domestic, and automobile customers. Notably, the demand for natural gas in the CGD sector is projected to grow at a Compound Annual Growth Rate (CAGR) of 15-16% between Fiscal 2022 and Fiscal 2030.
IRM Energy operates in multiple regions across India, including Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu).
The company’s core services include the distribution of Compressed Natural Gas (CNG) for motor vehicles and Piped Natural Gas (PNG) for domestic households, as well as commercial and industrial units. As of September 30, 2022, IRM Energy had a substantial customer base, serving 168 industrial customers, 202 commercial customers, and 43,183 domestic customers.
The financial performance of IRM Energy presented :
Financial Year
Revenue (in Crores)
Expenses (in Crores)
Net Income (in Crores)
Margin (%)
FY 2020
165.66
134.80
21.03
12.69
FY 2021
211.81
166.46
34.87
16.46
FY 2022
546.14
396.83
128.04
23.44
FY 2023
1,039.14
970.66
63.08
6.07
Financial Year
EPS
PE Ratio
RONW (%)
NAV
ROCE (%)
EBITDA (%)
Debt/Equity
FY 2020
8.60
–
28.19
27.55
16.94
33.67
1.80
FY 2021
12.39
–
29.67
40.55
19.98
38.49
1.17
FY 2022
43.88
–
52.53
82.98
39.01
39.61
0.59
FY 2023
20.93
22.93 – 24.13
18.23
114.48
14.19
12.14
0.86
Information about IRM Energy IPO market lot:
Application
Lot Size
Shares
Amount
Retail Minimum
1
29
₹14,645
Retail Maximum
13
377
₹190,385
S-HNI Minimum
14
406
₹205,030
B-HNI Minimum
69
2001
₹1,010,505
The objectives of the IRM Energy IPO proceeds are as follows:
Funding Capital Expenditure: The funds will be utilized to finance capital expenditure requirements for the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) during Fiscal 2024, Fiscal 2025, and Fiscal 2026.
Debt Repayment: A portion of the funds will be used for the prepayment or repayment of certain outstanding borrowings availed by the company, reducing its debt burden.
General Corporate Purposes: The remaining funds will be allocated for general corporate purposes, which may include working capital needs, operational expenses, and other strategic initiatives aimed at enhancing the company’s overall business operations.
IRM Energy’s Offer Lead Manager and Offer Registrar:
Offer Lead Manager
Offer Registrar
HDFC BANK LIMITED
LINK INTIME INDIA PRIVATE LIMITED
Investment Banking Group, Unit No. 401 & 402, 4th Floor, Tower B, Peninsula Business Park, Lower Parel, Mumbai 400 013 Maharashtra, India
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