1213919 SIP myths you must know!
A new IPO on mainboard is on the horizon and that is IRM Energies. The company belong to gas distribution business. It distributes both CNG and PNG. The company has 168 industrial customers, 202 commercial customers and 43,183 domestic customers. It has business in four geographical areas Fatehgarh Sahib (Punjab), Banaskantha (Gujarat), Diu & Gir […]
A new IPO on mainboard is on the horizon and that is IRM Energies. The company belong to gas distribution business. It distributes both CNG and PNG. The company has 168 industrial customers, 202 commercial customers and 43,183 domestic customers. It has business in four geographical areas Fatehgarh Sahib (Punjab), Banaskantha (Gujarat), Diu & Gir Somnath and Namakkal & Tiruchirappalli. The management is quite bullish about the business ahead as demand in Fatehgarh Sahib and Banaskantha is expected to increase close to two times while that in Diu it is expected to increase around 4.7 times.
The company has raised Rs 545 crore from IPO and all of it will be fresh issue. Overall this sector has good prospects as the government is aiming for a higher share of natural gas in the energy mix.
The company is looking to raise Rs 545 crore from IPO and all of it will be a fresh issue. And out of it Rs 300 crore is capital expenditure in Tamil Nadu. The management stated that the size of the area in Tamil Nadu is huge and they have huge expectations from it as by 2027 it can become their second biggest geographical area.
Although revenue and volumes of companies have been on an upward trajectory, its cost has also increased a lot in recent times and that has impacted the company’s profitability. Also, global headwinds in the form of conflict in the Middle East can impact gas prices which can impact the company’s cost. The IPO will be open for subscription on 18th October and will remain open till 20 October.
Published: October 16, 2023, 15:58 IST