IRM Energy Ltd., a prominent natural gas distributor in various regions of India, is slated to launch its Initial Public Offering (IPO) this Wednesday. The company has priced its shares between ₹480-505, with the intention to raise approximately ₹545 crore ($73 million).
The IPO will consist of a fresh issue of up to 1.08 crore equity shares. IRM Energy caters to a diverse clientele, supplying compressed and piped natural gas to more than 52,000 domestic customers along with hundreds of commercial and industrial clients.
According to the company's plans, the proceeds from the IPO will be channeled towards various strategic initiatives. These include the development of the City Gas Distribution (CGD) network in Namakkal and Tiruchirappalli, located in Tamil Nadu, from fiscal year 2024 to 2027. The funds will also be used for repaying debt and other corporate purposes.
Cadila Pharmaceuticals Ltd. and IRM Trust are significant shareholders in IRM Energy, holding 49.5% and 18.4% stakes, respectively. As part of its post-IPO plans, the company aims to list on BSE and NSE by October 31. Anand Rathi Share and Stock Brokers Ltd reported that following the IPO, IRM Energy's market capitalization is expected to reach ₹2,073.5 crore ($278 million). The company's price-to-earnings ratio stands at 33 times and it has a Return on Net Worth (RoNW) of 18.2%.
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