IRM Energy IPO | Firm mobilises Rs 160 crore ahead of initial public offering

IRM Energy IPO opens on October 18

Cadila Pharma-backed gas distribution company IRM Energy raised Rs 160.35 crore via anchor book on October 17, ahead of IPO opening.

Marquee investors invested in the company via anchor book included Quant Mutual Fund, DSP Mutual Fund, HDFC Life Insurance Company, SBI General Insurance Company, PNB Metlife India Insurance Company, ITI Mutual Fund, Bank of India Mutual Fund, and Nippon India.

The Gujarat-based company in its filing to exchanges said it has finalised allocation of 31,75,200 equity shares to anchor investors at Rs 505 per share.

"Out of total allocation of 31,75,200 equity shares, 17,29,656 equity shares were allocated to four domestic mutual funds that have applied through a total of eight schemes," the firm said.

The public issue will open on October 18 and the closing date would be October 20.

Also read: IRM Energy IPO: Financials, shareholding and comparison with peers in 5 charts

IRM Energy is planning to mop up Rs 545.40 crore via the initial public offering of 1.08 crore equity shares at the upper price band.

The issue price band has been fixed at Rs 480-505 per share.

The offer comprises only a fresh issue component, hence the entire IPO proceeds (excluding issue expenses) will be utilised only for the company.

Also read: IRM Energy IPO to open tomorrow: Should you subscribe to the Rs 545.4 crore issue?

The development of the city gas distribution network in the geographical areas of Namakkal and Tiruchirappalli in Tamil Nadu, at a cost of Rs 307.26 crore, will be funded via fresh issue proceeds. In addition, the company will also repay its debt of Rs 135 crore.

The remaining IPO funds will be utilised for general corporate purposes.

The city gas distribution company has operations in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Damanand Diu / Gujarat), and Namakkal & Tiruchirappalli (TamilNadu).

Also read: IRM Energy IPO opens on Oct 18: 10 things to know before you buy into Rs 545.4-cr issue

Cadila Pharmaceuticals and IRM Trust are the promoters in the company, holding 67.94 percent shares, and the rest is held by public shareholders including Enertech Distribution Management, and Shizuoka Gas Company.