Ellenbarrie Industrial Gases IPO Opens: Key Details, Financials, and Investment Insights
Ellenbarrie Industrial Gases IPO : Industrial Gases Limited, a prominent player in India’s industrial and medical gases industry, is all set to make its debut on the stock market with an Initial Public Offering (IPO) that is poised to attract investor interest. With strong financial performance, robust industry presence, and a clearly defined growth roadmap, this IPO is one to watch closely.
IPO Overview: Dates, Structure & Valuation
The Ellenbarrie Industrial Gases IPO opens for subscription on June 24, 2025, and will close on June 26, 2025. The IPO consists of:
- Fresh Issue: 1.00 crore equity shares aggregating up to ₹400 crore
- Offer for Sale (OFS): 1.13 crore equity shares totaling ₹452.53 crore
- Total Issue Size: ₹852.53 crore
- Face Value: ₹2 per share
- Price Band: ₹400 per share (cap price)
- Listing: NSE and BSE
As of June 23, 2025, the IPO is trading at a ₹10 premium in the grey market, with shares priced at ₹410 – a 2.5% premium over the cap price.
Company Profile: Ellenbarrie Industrial Gases at a Glance
Incorporated in 1973, Ellenbarrie Industrial Gases Limited (EIGL) is a well-established player in the production and supply of industrial, medical, and specialty gases. Its wide-ranging offerings include:
- Industrial gases: Oxygen, nitrogen, carbon dioxide, helium, argon, hydrogen, acetylene
- Medical gases: Medical oxygen, nitrous oxide
- Specialty gases & others: Dry ice, LPG, welding mixtures, synthetic air
The company serves diverse customers via:
- Bulk supply (via cryogenic tankers)
- Packaged cylinders
- Onsite generation and supply systems
EIGL also provides engineering services, including setting up tonnage air separation units and medical gas pipeline systems.
Promoters and Stake Sale
The company is led by seasoned promoters Padam Kumar Agarwala and Varun Agarwal, who are also participating in the Offer for Sale.
- Padam Kumar Agarwala: Selling up to 56.56 lakh shares (avg. acquisition cost ₹5.29)
- Varun Agarwal: Selling up to 56.56 lakh shares (avg. acquisition cost ₹10.49)
IPO Objectives: Strategic Utilization of Funds
The net proceeds from the IPO will be used as follows:
| Purpose | Amount (₹ Cr) |
|---|---|
| Repayment/prepayment of debt | 210.00 |
| New 220 TPD air separation unit at Uluberia | 104.50 |
| General corporate purposes | Balance amount |
These investments aim to expand capacity, reduce leverage, and improve operational efficiency.
Financial Highlights: Steady Growth & Rising Profitability
EIGL has demonstrated impressive financial growth over the past three years:
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 223.71 | 290.20 | 348.43 |
| Net Profit (₹ Cr) | 28.14 | 45.29 | 83.29 |
| YoY Revenue Growth (%) | – | 29.7% | 20.0% |
| YoY Profit Growth (%) | – | 61.0% | 84.0% |
| Revenue CAGR (2 Years) | – | – | 24.80% |
| Profit CAGR (2 Years) | – | – | 72.04% |
Key Financial Ratios & Market Valuation
| Metric | EIGL (FY25) | Linde India (Peer) |
|---|---|---|
| Face Value | ₹2.00 | ₹10.00 |
| EPS (Basic & Diluted) | ₹6.36 | ₹53.33 |
| NAV per Share | ₹25.48 | ₹447.91 |
| RoNW | 24.97% | 11.91% |
| P/E Ratio | Not Available | 140.74 |
| ROCE | 18.2% | – |
| ROE | 17.8% | – |
| Dividend Yield | 0.00% | – |
| Current Market Price | ₹310 | – |
| Book Value | ₹298 | – |
| Market Cap | ₹5,637 Cr | – |
Despite being smaller in scale compared to Linde India, Ellenbarrie’s RoNW of 24.97% is significantly higher, indicating efficient use of equity capital.
Strengths and Risks to Consider
Key Strengths:
- Market leader in Eastern and Southern India’s gas industry
- Diverse product portfolio serving multiple sectors
- Established client base ensuring recurring revenues
- Integrated supply chain and operational infrastructure
Risks and Challenges:
- Dependency on key customers
- Operational hazards related to gas handling
- Legal proceedings involving associated entities
- Onsite customer relationship risks
Conclusion: Should You Subscribe?
Ellenbarrie Industrial Gases Limited’s IPO presents a promising opportunity for investors seeking exposure to a niche yet critical segment of India’s industrial growth. With strong financial performance, high RoNW, and clear expansion plans, the company is well-positioned for future growth. However, prospective investors must assess operational risks and market conditions before subscribing.
Frequently Asked Questions (FAQs)
Q1. When is the Ellenbarrie Industrial Gases IPO open for subscription?
A: The IPO opens on June 24, 2025, and closes on June 26, 2025.
Q2. What is the total issue size of the IPO?
A: The total issue size is ₹852.53 crore, including both fresh issue and offer for sale.
Q3. What is the GMP (Grey Market Premium) for Ellenbarrie Industrial Gases IPO?
A: As of June 23, 2025, the GMP is ₹10, suggesting a 2.5% premium over the issue price.
Q4. What will the IPO proceeds be used for?
A: The funds will be used for debt repayment, setting up a new air separation unit, and general corporate purposes.
Q5. How has the company performed financially in recent years?
A: Revenue and profit have grown at a CAGR of 24.80% and 72.04%, respectively, over the last two years.
Q6. Who are the lead managers of the IPO?
A: The IPO is managed by Motilal Oswal, IIFL Capital, and JM Financial.
Q7. Should I consider investing in this IPO?
A: Ellenbarrie’s solid financials, operational strength, and high RoNW make it an attractive investment, especially for long-term investors, but be mindful of sector risks.
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