January 12, 2023
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IRM Energy IPO Analysis @ Chanakyanipothi.com,
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IRM Energy IPO Promoters
DR. RAJIV INDRAVADAN MODI, CADILA PHARMACEUTICALS LIMITED AND IRM TRUST
IRM Energy: Company Details
IRM Energy Ltd is a city gas distribution 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. It is an integrated value driven energy enterprise, developing natural gas distribution projects in the geographical areas allotted to us it for
industrial, commercial, domestic and automobile customers, and it has built its competency as a CGD company by development of its existing GAs since 2017. It focuses on meeting the energy needs of customers in its GAs through its pipelines and CNG station network at a competitive price, while maintaining high safety standards. It distributes CNG for use in motor vehicles and PNG for use by domestic households as well as for commercial and industrial units.
It commenced its operations in July 2017, pursuant to the receipt of 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 in July 2016
Its supply network consisted of (i) 3,248 inch kms, including approximately 2,665 inch kms of pipelines of medium density polyethylene (“MDPE”) pipelines and 583 inch kms of steel pipelines for the six months ended September 30, 2022.It served 168 industrial customers, 202 commercial customers, 43,183 domestic customers as at September 30, 2022
The company has established a network of 56 CNG filling stations, comprising 2 stations owned and operated by the Company (“COCO Stations”), 30 CNG stations owned and operated by dealers (“DODO Stations”) and 24 CNG stations owned and operated by oil marketing companies (“OMC Stations”) as at September 30, 2022. For more information, click www.irmenergy.com
Objects of the IPO
The Company proposes to utilise the Net Proceeds from the Issue towards funding the following objects:
1. 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, Fiscal 2025 and Fiscal 2026
2. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company
| IRM Energy IPO Details | |
| IPO opens on | (?) ,2023 |
| IPO closes on | (?) ,2023 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 10,100,000 Sh /Rs (?) Cr |
| * Fresh Issue | 10,100,000 Sh /Rs (?) Cr |
| * Offer for Sale | – Sh /Rs (-) Cr |
| Face Value per share: | Rs. 10 |
| Price Band | Rs. (?) |
| Employee discount | Rs. (?) per share |
| Retail Lot Size | (?) Shares |
| Listing will at | BSE, NSE |
| Shares offered to | Shares | Rs. |
| QIB (? %) | – | Rs (?) Cr |
| NII (? %) | – | Rs (?) Cr |
| RII (? %) | – | Rs (?) Cr |
| Employees | – | Rs (?) Cr |
| Total Shares | – | |
| Retail portion will be oversubscribed by | – Forms | |
| How much Shares to Apply? | ||
| Min Retail Application | – Shares | Rs. – |
| Max Retail Application | – shares | Rs. – |
| Small HNI (Min) application | – Shares | Rs. – |
| Small HNI (Max) application | – shares | Rs. – |
| Big HNI Application | – shares | Rs. – |
| IRM Energy IPO Tentative timetable | |
| IPO opens on. | ,2023 |
| IPO Closes on | ? ,2023 |
| IPO Allotment on | ? ,2023 |
| Unblocking of ASBA | ? ,2023 |
| Credit of Shares | ? ,2023 |
| Listing on | ? ,2023 |
| Registered Office of IRM Energy | |
| 4th Floor, Block 8, Magnet Corporate Park, Near Sola Bridge, S.G. Highway Ahmedabad, Gujarat – 380054 | |
| IPO Lead Managers HDFC Bank Limited BOB Capital Markets |
|
| Registrar to IPO | |
| Link Intime India Private Limited |
| IRM Energy IPO Financial & Analytical Ratios | ||||
| Year | Total Income | Net Profit | EPS | RoNW |
| Rs.in Cr | Rs.in Cr | Rs. | % | |
| 2019-20 | 166.12 | 21.09 | 8.60 | 28.19 |
| 2020-21 | 212.54 | 35.13 | 12.39 | 29.67 |
| 2021-22 | 549.91 | 113.56 | 43.88 | 52.53 |
| Book Value of the Share on | 31.03.2022 | Rs.82.98 | ||
| Book Value of the Share | after the IPO | Rs. | ||
| Offer Price | Rs. – | |||
| Ratio Analysis | |
| Upper Price Band/last EPS | – |
| Upper offer price/Book Value Ratio | – |
| Upper offer price/BV after IPO Ratio | – |
Gandhar Oil Refinery (India) Peer Comparison
| As on date of DRHP | Total Income Rs. | Face | PE |
| Income | Value | Ratio of | |
| Rs. In Cr | Rs | ||
| The IPO Company | 549.91 | 10 | (?) |
| Gujarat Gas | – | 2 | 27.71 |
| Indraprastha Gas | – | 2 | 2038 |
| Mahanagar Gas | – | 10 | 14.60 |
| Adani Total Gas | 1 | 798 | |
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