- By Vaamanaa Sethi
- Thu, 26 Oct 2023 11:35 AM (IST)
- Source:JND
The shares of IRM Energy got listed at a discount of 5.5% on Indian bourses on Thursday, October 25. IRM Energy stock made its stock market debut at Rs 477.2 per piece on NSE, against its IPO price of Rs 505 per share. Meanwhile, the shares listed at Rs 479 per share on BSE, down 5.15%.
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IRM Energy shares were trading at a premium of Rs 35 in the unlisted market. Experts noted that although IRM Energy is in its initial stages, it boasts a varied customer base, an extensive distribution network, and robust customer connections. Furthermore, the IPO was deemed reasonably priced.
The initial public offering (IPO), consisting solely of 1.08 crore fresh equity shares, garnered strong interest with a subscription rate of 27.05 times at the close.
IRM Energy operates as a city gas distribution company in India, serving regions in Gujarat, Punjab, the Union Territory of Daman and Diu, and Tamil Nadu.
The company specializes in the establishment, operation, and expansion of city and local natural gas distribution networks. It operates as an integrated, value-focused energy enterprise, dedicated to developing natural gas distribution projects for industrial, commercial, domestic, and automotive customers in the areas designated to it.
The company envisions significant growth potential within its operational geographical areas due to the anticipated increase in the number of CNG-equipped vehicles, potential growth in the number of households in these regions, and the presence of industrial clusters in Mandi Gobindgarh (Fatehgarh Sahib), as well as in Namakkal and Tiruchirappalli.
The net proceeds from this offering will be allocated towards financing the capital expenditure requirements for expanding the city gas distribution network in the geographic regions of Namakkal and Tiruchirappalli in Tamil Nadu, debt repayment, and other general corporate purposes.
In the quarter ending June, the company reported a 6% growth in revenue from operations, reaching Rs 245 crore, with a notable 31% increase in net profit to Rs 26.9 crore during the same period.