The initial public offer (IPO) of IRM Energy received bids for 3,32,69,235 shares as against 76,24,800 shares on offer, according to stock exchange data at 17:00 IST on Thursday (19 October 2023). The issue was subscribed 4.36 times.

The issue opened for bidding on Wednesday (18 October 2023) and it will close on Friday (20 October 2023). The price band of the IPO is fixed at Rs 480-505 per share. An investor can bid for a minimum of 29 equity shares and in multiples thereof.

The offer comprises fresh issue of 1.08 crore equity shares. The company proposes to utilize the net proceeds towards funding capital expenditure requirements for development of the city gas distribution network in the geographical areas of Namakkal and Tiruchirappalli (Tamil Nadu) in fiscal 2024 (from 1 December 2023 to 31 March 2024), fiscal 2025, fiscal 2026 and fiscal 2027 (from 1 April 2026 to 30 September 2026) amounting Rs 307.26 crore, prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company amounting Rs 135 crore and balance towards general corporate purposes.

Ahead of the IPO, IRM Energy on Tuesday, 17 October 2023, raised Rs 160.34 crore from anchor investors. The board allotted 31.75 lakh shares at Rs 505 each to 12 anchor investors.

IRM energy (a group company of Cadila Pharmaceuticals) is a city gas distribution (CGD) company in India developing natural gas distribution projects across various districts in the country for industrial, commercial, domestic, and automobile customers.

The company reported a net profit of Rs 26.91 crore and total income of Rs 230.04 crore for the three months ended on 30 June 2023.