IRM Energy Ltd, an Indian city gas distribution company, has announced plans for its initial public offering (IPO), which opens next week. The company has set a price band of Rs 480-505 ($1 = Rs 83.16) per share, inclusive of an employee reservation and discount of Rs 48 per share. The IPO will allow a minimum bid for shares set at 29 equity shares and multiples thereof.
The proceeds from the IPO are expected to mobilize between Rs 518.4 crore (Rs 1 crore = $120,132) and Rs 545.4 crore at the lower and upper price bands respectively. The funds raised will be used for various purposes including city gas distribution in Namakkal and Tiruchirappalli, Tamil Nadu (Rs 307.26 crore), debt repayment (Rs 135 crore), and other corporate purposes.
Existing shareholders Cadila Pharmaceuticals, which holds a 49.50% stake, and IRM Trust with an 18.44% stake, will issue up to 1.08 crore equity shares as part of the IPO.
As of June this year, IRM Energy served various customers in Gujarat, Punjab, Tamil Nadu through a network of 69 compressed natural gas (CNG) filling stations. The company recorded a revenue growth of 6.51% to Rs 245.25 crore, and a profit after tax increase of 31% to Rs 26.91 crore.
Following the IPO, the company's shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
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