Shares of IRM Energy surged 14 percent to Rs 303 apiece on March 27 after the company secured a five-year contract with Shell Energy India for the supply of Regasified Liquefied Natural Gas (RLNG).
IRM Energy first made its stock market debut on October 26 last year, listing at a 5 percent discount to its issue price of Rs 505. However, the stock has since faced substantial declines, currently trading 43 percent below its IPO price. When compared to its post-listing peak of Rs 641, the stock has tumbled 55 percent, reflecting a challenging trajectory since its market entry.
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The company, which operates in Gujarat, Punjab, the Union Territory of Daman and Diu, and Tamil Nadu, specialises in laying, building, operating, and expanding city and local natural gas distribution networks.
In an exchange filing, IRM Energy confirmed the successful execution of its long-term RLNG purchase agreement with Shell.
Under this agreement, IRM Energy will procure 1.23 crore MMBtu of gas over the five-year period. The company highlighted that this deal will provide a stable and cost-effective gas supply for industrial and commercial customers, reinforcing its commitment to reliability and efficiency in the gas distribution sector.
IRM Energy also expects this agreement to enhance its sourcing portfolio, thereby creating long-term value for stakeholders.
Despite this positive development, the company’s financial performance in Q3FY25 reflected some headwinds. Net profit plummeted 55 percent year-on-year (YoY) to Rs 10 crore, even as net sales rose 21 percent YoY to Rs 273 crore, signaling revenue growth but margin pressures.
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