IRM Energy IPO to open on Oct 18

New Delhi: City gas distribution company IRM Energy Ltd on Wednesday fixed a price band of Rs 480-505 per share for its Rs 545-crore initial public offering (IPO).

The initial share-sale will open for public subscription on October 18 and conclude on October 20, according to the company. The IPO is a fresh issue of up to 1.08 crore equity shares by existing shareholders. The offer also includes reservation for subscription by eligible employees, and a discount of Rs48 per equity share is being offered to such employees.

At present, the promoters own 67.94 per cent stake in the company, with the majority being held by Cadila Pharmaceuticals (49.50%), and the remaining shares being held by IRM Trust through its managing trustee Rajiv Indravadan Modi. The company will mobilise Rs 518.4 crore and Rs 545.4 crore at the lower and upper end of the price band, respectively.

Proceeds from the issue to the tune of Rs 307.26 crore will be used to fund capital expenditure requirements for development of the city gas distribution network at Namakkal and Tiruchirappalli in Tamil Nadu, Rs135 crore for payment of debt.