IRM Energy Limited IPO
IRM is a city gas distribution (“CGD”) company in India, with operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu), engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network.
They focus on meeting the energy needs of customers in geographical areas “GAs” through it’s pipelines and CNG station network at a competitive price, while maintaining high safety standards.
They have positioned themselves as the provider of one of the safest, cleanest and most cost-effective fuels for households, commercial establishments and industrial units as well as for fuel requirements in the transport segment.
Due to their competitive gas price and optimised operational expenditure, They can offer gas to PNG industrial customers at a viable price in the market and enable the PNG industrial customers to switch from other alternate fuels (coal and furnace oils) to natural gas.
They have authorizations for the GAs awarded for Banaskantha and Fatehgarh Sahib, in the sixth round of bidding conducted by the Petroleum and Natural Gas Regulatory Board (“PNGRB”) in July 2016.
They have also entered into certain gas transportation agreements (“GTAs”) for transportation of natural gas from suppliers pursuant to their GSPAs.
Natural gas demand from the CGD sector to log at 15-16% CAGR between Fiscal 2022 and Fiscal 2030, to 103-107 MMSCMD. (Source: CRISIL Report).
They have signed a memorandum of understanding (“MoU”) with Mindra EV Private Limited on August 24, 2022 for setting up an electric vehicle (“EV”) charging infrastructure at DODO Stations and COCO Stations for a period of five years and believe this will enable the creation of an efficient ecosystem for EV charging.
Objects of the IRM Energy Limited IPO:
IRM Energy Limited IPO Details:
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
Promoters And Management:
Financials of IRM Energy Limited IPO:
|Financials of IRM Energy|
|Particulars (Fig. In Cr.)||2022||2021||2020|
|Purchase of Stock-in -Trade||249||77||67|
|Excise Duty on Sale of Compressed Natural Gas||38||22||18|
|Employees Benefit Expenses||7||4||3|
Comparison With Peers:
|Name of the Company||Revenue (Cr)||Profit (Cr)||EPS||P/E||CMP||
|IRM Energy (IPO)||507||128||43.88||N/A||N/A||N/A|
|Adani Total Gas||3037||5,094||4.63||798.03||3,657||4,02,184|
Recommendation on IRM Energy Limited IPO:
To be updated once IRM Energy files for RHP.