The Initial Public Offering (IPO) of IRM Energy, a city gas distribution company based in India, was launched on Wednesday and was oversubscribed by 51 times on the first day. The company’s IPO, which will remain open from October 18-20, offers shares at a price range of ₹480-₹505 ($1 = ₹83.2). The public issue comprises 10.8 million fresh equity shares with a face value of ₹10 each.
The company plans to allocate ₹307.26 crore ($4.08 billion) from the IPO proceeds for capital expenditure on City Gas Distribution network in Namakkal and Tiruchirappalli, located in Tamil Nadu. An additional ₹135 crore ($1.79 billion) will be used for debt repayment.
The IPO has attracted significant interest from anchor investors, with entities including Quant MF, SBI General Insurance, and HDFC Life investing ₹160.35 crore ($2.13 billion) for 3.175 million shares at ₹505 each.
IRM Energy operates across various locations in India including Banaskantha in Gujarat and Fatehgarh Sahib in Punjab. The company has also partnered with Shizuoka Gas Co. Ltd., a Japanese city gas supplier. Currently, IRM owns 69 Compressed Natural Gas (CNG) stations including Company Owned Company Operated (COCO) Stations, Dealer Owned Dealer Operated (DODO) stations, and Oil Marketing Company (OMC) stations.
In addition to its core operations, IRM has invested in companies like Farm Gas Private Limited and signed a Memorandum of Understanding (MOU) with Mindra EV Private Limited for electric vehicle charging infrastructure. As of June 2023, the company serves a wide customer base including 184 industrial, 269 commercial, and over 52,000 domestic customers.
The share allotment for the IPO is scheduled for October 27, with listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) slated for October 31. HDFC Bank Limited and BOB Capital Markets Limited are managing the IPO, with Link Intime India Private serving as the registrar.
