IRM Energy Ltd IPO

The company is dependent on third parties for sourcing and transportation of natural gas. As of June 30, 2023, its procured natural gas from seven suppliers which constituted 100.00% of its total quantity purchased. Any disruption in the receipt of such natural gas from these third parties, or delay or default in timely transportation of the natural gas could lead to a disruption or failure in the supply of natural gas by it, which could adversely affect its business, reputation, results of operations and cash flows.

Transporting natural gas is hazardous and could result in accidents, which could adversely affect its reputation, business, financial condition, results of operations and cash flows.

The company has issued Equity Shares during the preceding one year at a price that may be below the Issue Price.

Cadila Pharmaceuticals Limited, one of its Promoters, has provided corporate guarantees to third parties for the loans availed by the Company. In the event the Company defaults on any of the loans availed, its Promoters will be liable for the repayment obligations. Further, the Company has provided corporate guarantees to third parties for the loans availed by its Associate Companies, Farm Gas Private Limited and Venuka Polymers Private Limited. In the event any of its Associate Companies default on any of the loans availed, the Company will be liable for the repayment obligations.

Its CNG and industrial PNG supply operations account for 49.43 % and 46.86 % of its total operations (in terms of volume) for the three months ended June 30, 2023. The company is heavily reliant on its CNG and industrial PNG supply operations and any decrease in the sales, may have an adverse effect on the business, operation, financial condition and cash flows of the Company.

Its may not receive sufficient funds pursuant to the Issue for utilization of Net Proceeds towards deployment of the Objects of the Issue.

The company requires various licenses and approvals for undertaking its businesses and the failure to obtain or retain such licenses or approvals in a timely manner, or at all, may adversely affect its operations.

Its typically requires 15-18 months to generate revenue in its GAs. Any further delay in realizing revenue may affect its projections, results of operations and cash flows.

Two of its Directors are on the board of directors of a listed company whose shares have been suspended from being traded on the BSE Limited and the National Stock Exchange of India Limited, during their tenure. Further, one of its Director has been on the board of directors of a listed company which was delisted from BSE Limited, during his tenure.

Its contingent liabilities for the three months ended June 30, 2023 amount to Rs. 2,396.85 million. Its contingent liabilities, if materialized could materially and adversely affect its business, results of operations and financial condition.