Cadila Pharma-backed gas distribution firm, IRM Energy, has successfully raised Rs 160.35 crore in the anchor book, setting the stage for its upcoming Initial Public Offering (IPO). This development comes as the company gears up to mobilize Rs 545.40 crore through the IPO, offering 1.08 crore equity shares at the upper price band.
Leading investors, including Quant Mutual Fund, DSP Mutual Fund, HDFC Life Insurance Company, and SBI General Insurance Company, expressed their confidence in IRM Energy by participating in the anchor book. The company allocated 31,75,200 equity shares to anchor investors at Rs 505 per share.
The public issue is set to open on October 18 and will conclude on October 20, with the issue price band fixed at Rs 480-505 per share. The IPO consists solely of a fresh issue component, with the entire IPO proceeds, excluding issue expenses, earmarked for the company’s use.
IRM Energy’s plans involve the development of a city gas distribution network in Namakkal and Tiruchirappalli in Tamil Nadu, costing Rs 307.26 crore. This will be funded through fresh issue proceeds. Additionally, the company plans to repay its debt of Rs 135 crore and allocate the remaining IPO funds towards general corporate purposes.
IRM Energy currently operates in various geographical areas, including Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Damanand Diu / Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu). Cadila Pharmaceuticals and IRM Trust are the promoters of the company, holding 67.94 percent shares, while the rest is held by public shareholders. Stay tuned for the IPO event, as IRM Energy makes its mark in the gas distribution sector.