IRM Energy Limited IPO Details

IRM Energy Limited is a city gas distribution (CGD) company in India engaged in the business of laying, building, operating and expanding the city or local natural gas distribution network. The company has operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal as well as Tiruchirappalli (Tamil Nadu).

The company stated that it is an integrated value driven energy enterprise, developing natural gas distribution projects in geographical areas allotted for industrial, commercial, domestic, and automobile customers. The company distributes CNG for use in motor vehicles and PNG for use by domestic households as well as for commercial and industrial units.

The company has mid- to long-term gas sale and purchase agreements (GSPAs) with gas suppliers such as GAIL and RIL that enable the company to source gas at a reasonable cost. The company’s gas procurement strategy helps to mitigate the effect of volatility in gas availability and pricing. The company has also subscribed to a proprietary membership from Indian Gas Exchange (IGX) through which they source natural gas on a need basis for their short-term requirements.

As of June 30, 2023, the company served 184 industrial customers, 269 commercial customers, and 52,454 domestic customers across all geographical areas.

IRM Energy further has interest and ownership in complementary businesses. The company has invested in Farm Gas Private Limited, a biomass and waste to energy solution company with a vision to convert biomass as well as municipal solid waste to compressed biogas(CBG) and bio-fertilizer. It has invested in Venuka Polymers Private Limited, a company engaged in the production of polyethylene (PE) pipelines, with a vision to provide cost-effective and economically viable products for creating the infrastructure of gas and water pipelines. 

Further, it has invested in Ni Hon Cylinders Private Limited, a company engaged in the supply of imported type one cylinders for retro fitment of CNG cylinders, with an intention of manufacturing cylinder cascades for sale to other CGD companies. Additionally, the company has signed an MoU with Mindra EV Private Limited for setting up an electric vehicle charging infrastructure for a period of five years.