Ellenbarrie Industrial Gases Limited (EIGL), one of the oldest industrial gases companies in India, is set to launch its Initial Public Offering (IPO) on June 24, 2025, with the subscription window open till June 26, 2025. This Book Built Issue is sized at ₹852.53 Crores, comprising a Fresh Issue of 100.00 Lakh shares worth ₹400.00 Crores, and an Offer for Sale (OFS) of 113.13 Lakh shares aggregating ₹452.52 Crores.

The IPO price band is set between ₹380 to ₹400 per equity share, with a lot size of 37 shares. The minimum investment for retail investors is ₹14,800, and for High-Net-Worth Individuals (HNIs), it is 14 lots (518 shares) amounting to ₹2,07,200.

At the upper price band of ₹400 per share, the company’s market capitalisation will stand at ₹5,637.42 Crores. The listing of shares is expected on July 01, 2025, on both BSE and NSE, and allotment finalization is scheduled for June 27, 2025.

The book running lead managers to the issue are Motilal Oswal Investment Advisors Limited, IIFL Securities Limited, and JM Financial Limited, while the registrar is KFin Technologies Limited.

Company Overview

Ellenbarrie Industrial Gases Ltd, established over five decades ago, has evolved into the largest 100% Indian-owned industrial gases company in terms of installed manufacturing capacity, revenue, and profitability for Fiscal 2024. The company operates one of India’s largest oxygen production units, with a production capacity of 1250 tonnes per day (TPD) as of March 31, 2024.

The company benefits from strong leadership—Chairman and Managing Director Padam Kumar Agarwala, with over 40 years of industry experience, and Joint Managing Director Varun Agarwal, with 15 years of experience, lead the business.

Financial Performance

Ellenbarrie Industrial Gases has shown steady growth in financial performance over the past three years:

• Revenue from operations:

  • FY25: ₹3,484.32 Million

  • FY24: ₹2,902.03 Million

  • FY23: ₹2,237.10 Million

• EBITDA:

  • FY25: ₹1,456.85 Million

  • FY24: ₹822.58 Million

  • FY23: ₹521.91 Million

• Profit After Tax (PAT):

  • FY25: ₹832.89 Million

  • FY24: ₹452.89 Million

  • FY23: ₹281.42 Million

This upward trend in financial performance signals a healthy operational growth trajectory and increasing efficiency.

Valuation Metrics

The key metrics as per FY24 indicate:

• Pre-issue EPS: ₹6.36

• Post-issue EPS: ₹5.91

• Pre-issue P/E: 62.89x

• Post-issue P/E: 67.69x

• Industry P/E Ratio: 141x

• Return on Capital Employed (ROCE): 13.71%

• Return on Equity (ROE): 16.88%

• Return on Net Worth (RoNW): 24.97%

While the valuation appears fair, it is not undervalued, making the IPO suitable only for long-term investors who believe in the industrial gases sector’s growth potential.

IPO Objectives

The company proposes to use the net proceeds for the following objectives:

1. ₹210.00 Crores for repayment or prepayment of outstanding borrowings

2. ₹104.50 Crores for setting up a new air separation unit at Uluberia-II plant with a 220 TPD capacity

3. The rest for general corporate purposes

This shows a focus on debt reduction and capacity expansion, which are both growth-positive initiatives.

Grey Market Premium (GMP)

As of June 20, 2025, the GMP for Ellenbarrie Industrial Gases IPO is reported at ₹0, reflecting no active premium trading in the grey market. This suggests muted listing expectations, and investors should not expect early listing gains.

While GMP is unofficial and speculative, its zero status can indicate limited immediate market enthusiasm, especially in comparison to other IPOs that often list at a premium based on oversubscription and sentiment.

Subscription and Allotment Process

Investors can subscribe to the IPO between June 24 to June 26, 2025. Allotment is expected to be finalized on June 27, 2025 and can be checked on KFin Technologies Limited’s website using:

• Application Number

• PAN Number

• DP Client ID

Steps:

• Go to IPO allotment status page

• Select “Ellenbarrie Industrial Gases Limited IPO”

• Enter required details

• View status

IPO Review & Analyst Opinion

Despite strong growth in revenues and profits, the absence of listing premium, the high P/E valuation, and moderate ROE and ROCE indicate the IPO is fairly priced but not attractive for short-term gains.

For long-term investors, especially those optimistic about the oxygen and industrial gas segment, Ellenbarrie may offer gradual returns. But for investors looking at listing-day performance, the zero GMP and average valuation suggest caution.

Final Verdict: Avoid for Listing Gains

While the company boasts a strong legacy, consistent growth, and domestic leadership in industrial gas manufacturing, the IPO is not expected to deliver listing gains due to its fair valuation and zero GMP.

Those considering this IPO must do so with a long-term horizon, keeping in mind the capital expansion, strong operational efficiency, and debt reduction plans. Short-term or momentum traders may find better opportunities elsewhere.

Disclaimer:
This article is meant for informational and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. Investors must conduct their own due diligence and consult financial advisors before making investment decisions. All data presented is based on publicly available sources and reflects the status as of the date of publication.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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