About Company

• IRM Energy Limited (“IRMEL”) was incorporated on December 1, 2015. Co-promoted by Cadila Pharmaceuticals, IRMEL is a City Gas Distribution (“CGD”) company in India, with operations at Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu), engaged in the business of laying, building, operating, and expanding the city or local natural gas distribution network. They develop natural gas distribution projects in the Geographical Areas (“GAs”) allotted to them for industrial, commercial, domestic and automobile customers. The company has successfully built a customer distribution network for PNG and CNG. 
• The company commenced their operations in July 2017, pursuant to the receipt of authorizations for the GAs awarded for Banaskantha and Fatehgarh Sahib, in the 6th round of bidding conducted by the Petroleum and Natural Gas Regulatory Board (“PNGRB”) in July 2016.
• The company supply natural gas to 2 primary set of customer segments: 
• CNG (Compressed Natural Gas): Their customers include operators of public transport vehicles such as taxis, auto-rickshaws, and private vehicles such as cars, buses, light goods vehicles, and heavy goods vehicles. 
• PNG (Piped Natural Gas): The PNG customers are broadly classified into 3 segments, which are, industrial PNG (small, medium and large-sized enterprises), commercial PNG (such as hotels, restaurants, bakeries, hostels and community halls) and domestic PNG (predominantly using PNG as cooking gas).
• In July 2016, in the 6th round of bidding, they received authorization to lay, build, operate and expand the city or local natural gas network with a minimum work permit (“MWP”) to create an infrastructure of 1,800 inch kms gas pipeline (consisting of medium density polyethene (“MDPE”) pipelines and steel pipelines) and 28,021 PNG domestic connections in Banaskantha; and 650 inch kms gas pipeline (consisting of MDPE pipelines and steel pipelines), and 5,905 PNG
• domestic connections in Fatehgarh Sahib. Thereafter, they received the authorization for the GA of Diu & Gir Somnath in the 9th round of bidding conducted in September 2018, for creating the infrastructure of 188-inch kms gas pipeline (consisting of steel pipelines), 91,000 PNG domestic connections and 35 CNG stations in Diu & Gir Somnath.  
• As on June 30, 2023, it had 52,454 domestic customers, 269 commercial customers and 184 industrial customers. Thus, the company has established its creditability in terms of efficient operational management, stakeholder management and supply-chain risk management.
• After receiving authorisation for Diu and Gir Somnath GA in Gujarat in the 9th round and Namakkal and Tiruchirappalli districts in the 11th round, the company expanded its presence from 2 to 4 GAs.

Strengths

Competitive Strength 

• Exclusivity in CNG and PNG supply in the awarded Gas;
• Successful development and operation of CGD business;
• Diverse customer portfolio and distribution network of CNG and PNG; 
• Strong parentage, experienced board and management team and strong execution team;
• Technology adoption and digital initiatives for efficient and optimal operations;
• Connectivity to gas pipelines and establishing cost-effective gas sourcing arrangements;
• Strong financial performance with consistent growth and profitability supported by healthy operating efficiency and favourable regulations.

Business Strategies 

• Expand the presence in existing and newer GAs through an improved captive distribution channel;
• Infrastructure roll-out for development and operation of the new licensed GA of Namakkal & Tiruchirappalli, Tamil Nadu;
• Technology adoption to increase operational efficiency and enhance customer value;
• Business integration for transition into a complete energy solution provider;
• Continue to focus on sourcing reliable and cost-effective gas from leading Gas Suppliers. 

Company Promoters

Company Financials

RM Energy Limited's revenue increased by 90.3% and profit after tax (PAT) dropped by -50.69% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

1. Funding capital expenditure requirements for the development of the City Gas Distribution network in the Geographical Areas of Namakkal and Tiruchirappalli (Tamil Nadu) in Fiscal 2024, Fiscal 2025 and Fiscal 2026;
2. Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company; and
3. General corporate purposes.