Ellenbarrie Industrial Gases Limited, a leading gas manufacturer and distributor in India, is set to launch its Initial Public Offering (IPO) with a combined issue size of nearly ₹977 crore, consisting of a ₹400 crore fresh issue and an Offer for Sale (OFS) worth ₹577 crore by its promoters. The IPO opens for public subscription on Tuesday, June 24, 2025, and will close on Thursday, June 26, 2025.

This IPO presents a significant opportunity for investors to participate in the industrial gases sector, which plays a crucial role across healthcare, manufacturing, energy, chemicals, and infrastructure.

Ellenbarrie Industrial Gases IPO Details

IPO Reservation Category

About Ellenbarrie Industrial Gases

Established in India, Ellenbarrie Industrial Gases Limited manufactures and supplies a wide range of industrial, medical, and specialty gases. Their diverse product portfolio includes:

• Oxygen

• Carbon dioxide

• Acetylene

• Nitrogen

• Helium

• Hydrogen

• Argon

• Nitrous oxide

The company also offers dry ice, synthetic air, fire-extinguishing gases, medical oxygen, and liquefied petroleum gas (LPG). With such a comprehensive product mix, Ellenbarrie caters to healthcare, pharmaceuticals, welding, steel manufacturing, chemicals, electronics, and food and beverage industries.

Ellenbarrie has earned a strong reputation for reliability, safety standards, and technological capabilities in gas manufacturing and distribution. The company operates through a mix of owned production facilities and bulk supply contracts across India.

Objectives of the IPO

The company aims to utilise the net proceeds from the fresh issue primarily for the following:

1. Repayment or prepayment of borrowings – ₹210 crore

2. Setting up a 220 TPD air separation unit at Uluberia-II (West Bengal) – ₹104.5 crore

3. General corporate purposes – Remaining balance

As of April 2025, the company’s total outstanding debt was ₹264.2 crore, and the fund infusion from this IPO will help deleverage its balance sheet, reduce interest costs, and enhance future project capabilities.

Promoter and OFS Details

The Offer for Sale (OFS) component involves promoters Padam Kumar Agarwala and Varun Agarwal, who are offloading up to 1.44 crore equity shares. This sale will amount to approximately ₹577 crore at the upper price band of ₹400 per share.

Industry Overview

The industrial and medical gases market in India has witnessed significant growth in recent years, with rising demand from:

• Healthcare and hospitals (especially post-COVID)

• Manufacturing and infrastructure expansion

• Semiconductors and electronics

• Food and beverages requiring dry ice and CO₂ applications

Linde India Ltd is the sole listed peer, trading at a P/E ratio of 140.74, highlighting the high valuation benchmarks in this segment.

Financial Performance Snapshot

While the detailed financial data is expected in the RHP, the inclusion of a large OFS by promoters and a sizeable debt repayment plan signals a balanced financial strategy. The establishment of the new air separation plant is likely to expand the company’s production capacity and increase future earnings visibility.

Strengths of Ellenbarrie IPO

1. Diversified gas portfolio catering to high-demand sectors

2. Established brand in industrial and medical gas manufacturing

3. Significant reduction in debt planned from IPO proceeds

4. Expansion in capacity via the Uluberia-II unit for future growth

5. Listed peer Linde India trades at premium valuation, making Ellenbarrie potentially attractive

Risks and Concerns

1. Capital-intensive industry with high maintenance and compliance costs

2. Dependency on limited suppliers and infrastructure for specialty gases

3. Any delay in setting up the new plant may affect growth projections

4. Offer-for-sale by promoters could be viewed as partial exit

5. Market conditions may influence listing sentiment, especially in a volatile IPO environment

Grey Market Premium (GMP)

As of now, no confirmed Grey Market Premium (GMP) data has been reported for the IPO. GMP will likely emerge closer to the anchor allotment date. However, based on sectoral interest and IPO size, the stock could see moderate to good listing demand if broader markets remain stable.

Final Recommendation: Cautious Apply

Ellenbarrie Industrial Gases IPO is a debt-reduction-driven offer backed by a strong growth plan and an industry with favourable demand dynamics.

Given:

• The competitive price range (₹380–₹400)

• The Linde India P/E benchmark

• The criticality of its product portfolio across sectors

We recommend:

• Retail investors: Cautious Apply if you are a long-term investor interested in industrial/healthcare infrastructure plays.

• Institutional and HNIs: Moderate interest advised, especially if anchor participation is strong.

Would you like:

• Live subscription tracker for Ellenbarrie IPO from June 24?

• Comparison chart with Linde India and sector performance?

• A GMP trend update closer to listing?

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  Disclaimer:
  This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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