IRM ENERGY LIMITED

IRM ENERGY LIMITED - IPO DETAILS 

Company Overview 

Established in 2015, IRM Energy Limited operates as a gas distribution firm, focusing on the development, operation, and expansion of local natural gas distribution networks. This value-oriented energy company caters to a diverse range of customers, including industrial, commercial, domestic, and automotive clients.  

The company has established its presence in various regions, including Banaskantha District in the state of Gujarat, Fatehgarh Sahib in the state of Punjab, and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat. IRM Energy effectively meets the natural gas needs of 48,172 domestic customers, 179 industrial units, and 248 commercial clients. The company has earned recognition, receiving the "City Gas Distribution- Growing Company of the Year 2020" award from the Federation of Indian Petroleum Industries. As of September 2022, IRM Energy has a network of 216 CNG gas stations operating within its designated geographical areas. 

Objective of the IPO 

Here are a few quick reasons why IRM Energy Limited going public:  

1. The funding is allocated for the capital expenditure needed to advance the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli, Tamil Nadu, in Fiscal years 2024, 2025, and 2026. 

2. Additionally, it may be utilized for prepaying or repaying some or all of the outstanding borrowings that the company has acquired. 

3. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company adopts a prudent procurement approach, sourcing gas from government entities such as GAIL and RIL at competitive rates. This strategy effectively mitigates the impact of fluctuations in gas availability and pricing. 

2. IMR Energy holds exclusive rights for a 25-year period to establish infrastructure within all its designated Geographical Areas (GAs). This encompasses the development of pipelines and CNG distribution networks, extending to the Diu & Gir Somnath area until 2030 and the Namakkal & Tiruchirappalli area. 

3. The company has fostered strong relationships with a diverse customer base, including industrial, commercial, and domestic clients, leveraging its extensive CNG and PNG distribution network. 

4. IMR Energy has demonstrated robust in-house project management capabilities, complemented by efficient operation and maintenance processes, contributing to its overall operational excellence. 

Cons 

1. IRM Energy has a significant dependence on third-party suppliers, where the top seven suppliers are responsible for 100% of the company's total purchases. Any disruptions in this supply chain could potentially result in a failure to provide a consistent supply of natural gas. 

2. The company's network of pipelines plays a critical role in the distribution of natural gas. Any breakdown or issues with this infrastructure could lead to disruptions in its business operations, affecting the delivery of gas to customers.  

3. The allocation and cost of natural gas for CNG and domestic PNG customers are subject to government policies. Changes in these policies or regulations could have adverse effects on the company's operations and financial performance. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS