City gas distributor IRM Energy Ltd. initiated its initial public offering (IPO) on Wednesday, with the objective of raising Rs 545.40 crore through a fresh issue of 1.08 crore shares priced between Rs 480 and Rs 505 each. This follows the company's successful pre-IPO fundraising effort, in which it secured Rs 160.3 crore from anchor investors including Quant Mutual Fund, HDFC Life Insurance Co., and DSP Small Cap Fund, among others.
In the pre-IPO round, IRM Energy distributed 31,75,200 shares at Rs 505 each to a total of twelve anchor investors.
Quant Mutual Fund received a significant 24.54% allocation of these shares. ITI Flexi Cap Fund and ITI Mid Cap Fund each secured 1.56%, while four domestic mutual funds across eight schemes and the Bank of India through three funds collectively netted 54.47% and 6.23%, respectively of the Rs 87.34 crore anchor portion, according to an exchange filing.
The majority stakeholder in IRM Energy is Cadila Pharmaceuticals, alongside other promoters holding a combined 67.94% stake in the company. The proceeds from the IPO are earmarked for capital expenditure on city gas distribution network expansion in Gujarat, Punjab, and Tamil Nadu, as well as for debt repayment.
The IPO, which will run from October 18-20, includes a special discount for employees and represents a significant milestone in the company's growth strategy.
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