IRM Energy Ltd IPO Timeline
IRM Energy Ltd IPO opens on 18-Oct-2023, and closes on 20-Oct-2023. The IRM Energy Ltd IPO bid date is from 18-Oct-2023 to 20-Oct-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
|IRM Energy Ltd IPO Opening Date
|IRM Energy Ltd IPO Closing Date
|Basis of Allotment
|Initiation of Refunds
|Credit of Shares to Demat
|IRM Energy Ltd IPO Listing Date
IRM Energy Ltd IPO Lot Size
IRM Energy Ltd IPO lot size is 29 shares. A retail-individual investor can apply for up to 13 lots (377 shares or 190385).
IRM Energy Ltd IPO Details
|IRM Energy Ltd IPO Date
|18-Oct-2023 to 20-Oct-2023
|IRM Energy Ltd IPO Face Value
|Shares of ₹10 per share
|IRM Energy Ltd IPO Price
|₹480 to ₹505 per share
|IRM Energy Ltd IPO Lot Size
|Shares of ₹10 (aggregating up to ₹544.36 Cr)
|Shares of ₹10 (aggregating up to ₹545.4 Cr)
|Offer for Sale
|Book Built Portion
|QIB Shares Offered
|Not more than 2116800
|Retail Shares Offered
|Not less than 3704400
|NII (HNI) Shares Offered
|Not less than 1587600
|Rajiv Indravadan Modi, Cadila Pharmaceuticals Ltd, Irm Trust.
Objects of the Issue
The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- 1 Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- 2 General Corporate Purposes
IRM Energy Ltd Financial Information (Restated)
|Profit After Tax
|Amount in ₹ Crore
- Exclusivity in CNG and PNG supply in the awarded GAs.
- Successful development and operation of CGD business.
- Diverse customer portfolio and distribution network of CNG and PNG.
- Strong parentage, experienced board and management team and strong execution team.
- Technology adoption and digital initiatives for efficient and optimal operations.
- Connectivity to gas pipelines and establishing cost-effective gas sourcing arrangements.
- Strong financial performance and consistent growth and profitability supported by healthy operating efficiency and favorable regulations.
- The company is dependent on third parties for sourcing and transportation of natural gas. As of June 30, 2023, its procured natural gas from seven suppliers which constituted 100.00% of its total quantity purchased. Any disruption in the receipt of such natural gas from these third parties, or delay or default in timely transportation of the natural gas could lead to a disruption or failure in the supply of natural gas by it, which could adversely affect its business, reputation, results of operations and cash flows.
- Transporting natural gas is hazardous and could result in accidents, which could adversely affect its reputation, business, financial condition, results of operations and cash flows.
- The company has issued Equity Shares during the preceding one year at a price that may be below the Issue Price.
- Cadila Pharmaceuticals Limited, one of its Promoters, has provided corporate guarantees to third parties for the loans availed by the Company. In the event the Company defaults on any of the loans availed, its Promoters will be liable for the repayment obligations. Further, the Company has provided corporate guarantees to third parties for the loans availed by its Associate Companies, Farm Gas Private Limited and Venuka Polymers Private Limited. In the event any of its Associate Companies default on any of the loans availed, the Company will be liable for the repayment obligations.
- Its CNG and industrial PNG supply operations account for 49.43 % and 46.86 % of its total operations (in terms of volume) for the three months ended June 30, 2023. The company is heavily reliant on its CNG and industrial PNG supply operations and any decrease in the sales, may have an adverse effect on the business, operation, financial condition and cash flows of the Company.
- Its may not receive sufficient funds pursuant to the Issue for utilization of Net Proceeds towards deployment of the Objects of the Issue.
- The company requires various licenses and approvals for undertaking its businesses and the failure to obtain or retain such licenses or approvals in a timely manner, or at all, may adversely affect its operations.
- Its typically requires 15-18 months to generate revenue in its GAs. Any further delay in realizing revenue may affect its projections, results of operations and cash flows.
- Two of its Directors are on the board of directors of a listed company whose shares have been suspended from being traded on the BSE Limited and the National Stock Exchange of India Limited, during their tenure. Further, one of its Director has been on the board of directors of a listed company which was delisted from BSE Limited, during his tenure.
- Its contingent liabilities for the three months ended June 30, 2023 amount to Rs. 2,396.85 million. Its contingent liabilities, if materialized could materially and adversely affect its business, results of operations and financial condition.
- Any breakdown in the network infrastructure through which its source and supply natural gas could adversely affect its business, reputation, results of operations and cash flows.
- Its may be subject to risks associated with delays in construction and commissioning of its existing and new gas distribution pipelines, including any delay in meeting its MWP targets.
- The objects of the Issue for which funds are being raised are based on management estimates and may be subject to change based on various factors, some of which are beyond its control. Further, have placed some but not all orders in relation to the capital expenditure to be incurred towards the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, it may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected.
- An inability to comply with repayment and other covenants in the financing agreements could adversely affect its business, financial condition, cash flows and credit rating.
- There are two criminal litigations, 29 regulatory actions and 12 material tax litigations as per its Materiality Policy, involving its Promoters. In the event of any adverse outcome, the Company's and its Promoter's business operations and reputation may be affected.
- Any delays in commissioning new CNG filling stations could adversely affect its business, prospects, results of operation and cash flows.
- The company is dependent on Government policies for allocation of natural gas and cost of gas supplied for its CNG and domestic PNG customers (the "Priority Sector"). Any reduction in allocation of natural gas or any increase in the cost of gas could adversely affect its business, reputation, operations and cash flows.
- Its city gas distribution network can only be set up in areas where the company receives authorization to operate from the PNGRB, accordingly, its operations are restricted to defined geographical boundaries and the natural gas requirements in these regions may be affected by various factors outside its control, which may adversely affect its business operations, profitability and cash flows.
- The company is subject to fluctuations in certain of its key performance indicators. In the event its business operations are adversely affected by market conditions, its key performance indicators will also get adversely affected.
- A portion of the Net Proceeds may be utilized for repayment or pre-payment of certain loans availed by the Company from Bank of Baroda, who is related to one of its BRLMs.
- Its CNG business is dependent on OMCs and third-party dealers for the operation of CNG filling stations. Any conflict with such OMCs or third-party dealers could adversely affect its business, results of operations and cash flows.
- There have been significant material developments post filing of the Draft Red Herring Prospectus which may affect its trading or profitability, value of its assets, the company ability to repay liabilities and its future results of operations.
- The Issue Price, market capitalization to total revenue multiple, market capitalization to earnings multiple, and enterprise value to EBITDA ratio based on the Issue Price of the Company, may not be indicative of the market price of the Equity Shares on listing or thereafter.
- Eleven of its premises including its registered and corporate office, branch offices and its customer care centers are not owned by it and the company has only lease rights over such premises. In the event its lose such rights or are required to negotiate it, its cash flows, business, financial conditions and results of operations could be adversely affected.
- Two of its Directors are on the board of directors of companies engaged in a line of business similar to its. Any conflict of interest that may occur between its business and the activities undertaken by such companies could adversely affect its business, results of operations and prospects.
- Its may face competition post marketing exclusivity from various existing players which operate in the same industry as the Company, which may have an adverse effect on the business, operation, financial condition and cash flows of the Company.
- The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
- Its insurance coverage may not be adequate to cover all losses or liabilities that its may incur in the company's business and operations.
- After the completion of the Issue, its Promoters will continue to collectively hold substantial shareholding in the Company.
- The COVID-19 pandemic, or a similar public health threat, could adversely affect its business, financial condition, and results of operations.
- The price of natural gas supplied depends on the cost of material consumed and certain external factors. A significant increase in the cost of material consumed or in these external factors will result in an increase in the price of gas supplied.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- Its existing GAs could be open to access for others, following the end of infrastructure and marketing exclusivity as prescribed under the PNGRB authorizations, post which period it would no longer be the sole distributor in these regions, resulting in a potential loss of customers and decrease in its profit margins.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The company will be required to do capital expenditure for infrastructure rollout over a substantial period of time. The cost of input materials may significantly go up in this time frame.
- The company has paid license fees of Rs. Nil, Rs. 35.10 million, Rs. 35.10 million and Rs. 63.00 million to its Promoter, IRM Trust, in the three months period ended June 30, 2023 and June 30, 2022 and for Fiscal 2023 and Fiscal 2022, respectively, in furtherance of the License Agreement dated October 25, 2021 and payment of corporate guarantee commission to its Promoter, Cadila Pharmaceuticals Limited of Rs. Nil and Rs. Nil, and Rs. 1.99 million, Rs. 13.09 million and Rs. Nil in the three months period ended June 30, 2023 and June 30, 2022 and for Fiscal 2023, Fiscal 2022 and Fiscal 2021. The company has also made paid rent to IRM Trust and reimbursements to its Corporate Promoter.
- Expansion of its business is primarily dependent on GAs awarded by governmental authorities. If its unable to enter new markets, or if there is any adverse change in the policies of the Government, its growth prospects will be adversely affected.
- Advancements in alternate sources of energy or the existence of cost-effective alternative fuels could adversely affect its business, results of operations and cash flows.
- While gas supply is benchmarked to global indexes in USD, the revenues of the Company are in INR. Accordingly, its cash flow is indirectly exposed to currency rate fluctuations.
- This Red Herring Prospectus contains information from an industry report prepared by CRISIL exclusively commissioned and paid for by it for such purpose.
- Its Directors, KMPs and SMPs may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.
- Its may not be successful in its technological adoptions, which may lead to an adverse effect on its reputation, business, results of operations and cash flows.
- Its track certain operational metrics with internal systems and tools. Certain of its operational metrics are subject to inherent challenges in measurement which may adversely affect its business and reputation.
- Its failure to manage growth effectively may adversely impact its business, prospects, financial condition and results of operations.
- If the company is unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.
- Its operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees or contract workers.
- Reliance has been placed on a declaration and an affidavit furnished by Rabindra Nath Nayak, its Non-Executive Independent Director, for details of his profile included in this Red Herring Prospectus.
- Any downgrade in its credit ratings could increase its borrowing costs, affect the company ability to obtain financing, and adversely affect its business, results of operations, cash flows and financial condition.
- There are clerical errors in some of its secretarial and corporate records.
- Disproportionate increases of re-instatement charges may adversely affect its profitability.
- The Company has availed an unsecured term loan from HDFC Bank Limited, one of the Book Running Lead Managers appointed in connection with the Issue, the proceeds of which have been deployed towards capital expenditure incurred in connection with the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli, in Fiscal 2023 and Fiscal 2024.
- Expand its presence in existing and newer GAs through an improved captive distribution channel.
- Infrastructure roll-out for development and operation of the new licensed GA of Namakkal & Tiruchirappalli, Tamil Nadu.
- Technology adoption to increase operational efficiency and enhance customer value.
- Business integration for transition into a complete energy solution provider.
- Continue to focus on sourcing reliable and cost-effective gas from leading Gas Suppliers.
IRM Energy Ltd IPO Promoter Holding
|Pre Issue Share Holding
|Post Issue Share Holding
IRM Energy Ltd IPO Subscription Status (Bidding Detail)
The IRM Energy Ltd IPO is subscribed 27.05 times on Oct 20, 2023 05:00:00 PM. The public issue subscribed 9.29 times in the retail category, 44.73 times in the QIB category, and 48.34 times in the NII category. Check Day by Day Subscription Details (Live Status)
IRM Energy Ltd IPO Prospectus
IRM Energy Ltd IPO Listing Date
|26 Oct 23
IRM Energy Ltd IPO Registrar
IRM Energy Ltd IPO Lead Manager(s)
FAQs on IRM Energy Ltd IPO
IRM Energy Ltd IPO, which opens for subscription from 18-Oct-2023 to 20-Oct-2023 has an issue size of ₹544.36 crore. The issue type is book building issue.
In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for IRM Energy Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.
IRM Energy Ltd IPO Opens for subscription from 18-Oct-2023 to 20-Oct-2023.
The lot size of IRM Energy Ltd is 29 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14645 and ₹190385 respectively.
Allotment date for IRM Energy Ltd is 23-Oct-2023 and refund of application amount (in case allotment is not received) will begin from 23-Oct-2023. If your allotment goes through, then shares will be credited in your Demat account by 25-Oct-2023.
The registrar for IRM Energy Ltd IPO is . You can check your IPO allotment status on the registrar's website.
The shares of IRM Energy Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).