IRM Energy IPO to open on October 18; check price band, lot size & other details

The initial public offering (IPO) of IRM Energy will open for subscription on Wednesday, October 18 and conclude on Friday, October 20. The company will be offering its shares in the fixed price band of Rs 480-505 per equity share with a lot size of 29 shares in its multiples thereafter. Anchor book for the issue will open on Tuesday, October 17. The IPO of Cadila Pharmaceuticals-backed IRM Energy is entirely a sale of 1.08 crore fresh equity shares with a face value of Rs 10 each, amounting to Rs 545.40 crore. The company has reserved 2,16,000 equity shares for its eligible employees, who will get a discount of Rs 48 per equity shares during the bidding process. Of the remaining net offer, not more than 50 per shares shall be reserved for the qualified institutional investors (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors have a quota for remaining 35 per cent of the net-offer in the IPO. The proceeds from the issue shall be utilized towards funding the capital expenditure requirements for the developing city gas distribution network in Namakkal and Tiruchirappalli (Tamil Nadu) in next three financial years; prepayment or repayment of certain outstanding borrowings of the company; and general corporate purposes. IRM Energy is a gas distribution company, involved in developing, operating and expanding of the local natural gas distribution network. It serves industrial, commercial, domestic and automobile customers.  It has operations in  Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), and Diu & Gir-Somnath (Daman & Diu) and Namakkal & Tiruchirappalli (Tamil Nadu). HDFC Bank and BoB Capital Markets are the book-running lead managers to the issue, while Link Intime India has been appointed as the registrar for this IPO. Shares of the company will be listed on both BSE and NSE.