IRM Energy files draft papers with Sebi to raise funds via IPO

The public issue will be an offer-for-sale (OFS) of up to 1.01 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).

The Ahmedabad-based company may consider a pre-IPO placement for up to 20 lakh equity shares. If such placement is completed, the issue size will be reduced.

The promoters own 67.94 per cent stake in the company, with the majority being held by Cadila Pharmaceuticals (49.50 per cent), and the remaining shares being held by IRM Trust Ltd through its managing trustee Rajiv Indravadan Modi.

IRM Energy provides piped natural gas (PNG) and compressed natural gas (CNG). It has operations in states including Gujarat, Punjab and Tamil Nadu and serves 168 industrial customers, 202 commercial customers, 43,183 domestic customers, as of September 2022.

It had an established network of 56 CNG filling stations, comprising 2 owned and operated by the company, 30 owned and operated by dealers and 24 owned and operated by oil marketing companies as of September 2022.

IRM Energy’s revenue from operations more than doubled to ₹504.12 crore in the six months ended September 30, 2022 from ₹205.45 crore in the year-ago period.

Its profit after tax dropped 17.91 per cent to ₹39.25 crore in the six-month period from ₹47.81 crore a year ago due to higher input gas cost.

HDFC Bank and BOB Capital Markets are the book-running lead managers to the issue. The shares of the company are proposed to be listed on BSE and NSE.