IRM Energy IPO will open for subscription today. IRM Energy wants to raise Rs 545.4 crore through IPO. Investors will have the opportunity to invest in it till October 20.
Gujarat-based City Gas Distribution Company has fixed the price band at Rs 480-505 per share. 1.08 crore fresh equity shares will be issued under the IPO of IRM Energy. IRM Energy has raised Rs 160.34 crore from anchor investors before the IPO.
Company wants to expand business
Based in Gujarat, City Gas Distribution provides local distribution services in Punjab, Daman and Diu, Tamil Nadu. The company supplies Compressed Natural Gas (CNG) and Piped Natural Gas (PNG).
The promoters of the company are Rajeev Indravadan Modi, Cadila Pharmaceuticals and IRM Trust. He has 67.94% stake in the company. Promoters Cadila Pharmaceuticals Ltd and IRM Trust hold 49.5% and 18.4% equity in the company. At the same time, Enertech Distribution Management holds 28.65% stake in the company and Shizuoka Gas Company holds 2.94% stake.
When will the listing happen?
As of June 30, the company had 52,454 domestic customers, 269 commercial customers and 184 industrial customers. The company is expected to be listed on BSE and NSE on October 31. IRM Energy is to expand business in Namakkal and Tiruchirappalli (Tamil Nadu) between FY24-27.
‘The company is quite good on the valuation front’
According to Anand Rathi Share and Stock Brokers Limited, IRM Energy is valued at Rs 2,073.5 crore at the upper band. According to analysts, the company is quite good on the valuation front.
Anand Rathi Share and Stock Brokers Limited said that the company provides reliable and environment-friendly alternative fuels to all its customers.
To invest or not?
Anand Rathi Share and Stock Brokers Limited also said that the company’s strategy is right with connectivity to gas pipelines and continued good financial performance. Anand Rathi Share and Stock Brokers Limited said that on the valuation front, we recommend ‘subscribing’ to the IPO of the company.
According to Prashant Tapse, Vice President (Research), Mehta Equities Limited, the company’s revenue growth has been 157% in FY22 and 90% in FY23. Mehta Equities has also advised to ‘Subscribe’ to the company.
