Ellenbarrie Industrial Gases Limited (EIGL), one of India’s oldest operating industrial gases companies, has launched its Initial Public Offering (IPO) on June 24, 2025, with the subscription period running until June 26, 2025. The IPO size stands at a total of ₹852.53 Crores, which includes a Fresh Issue of ₹400 Crores and an Offer for Sale (OFS) of ₹452.52 Crores.

This IPO marks a major move for Ellenbarrie Industrial Gases, a company with a rich legacy of over 50 years in the Indian industrial gases sector. Known for its expansive manufacturing scale, the company currently operates one of the largest oxygen plants in India with a capacity of 1250 tonnes per day (TPD) as of March 31, 2024. In Fiscal 2024, it stood out as the largest 100% Indian-owned company in its segment in terms of installed capacity, revenue, and profitability.

IPO Details and Structure

The price band for the IPO has been set between ₹380 to ₹400 per equity share. If priced at the upper end, the company’s market capitalisation will touch ₹5,637.42 Crores. Investors need to bid for a lot size of 37 shares, resulting in a minimum investment of ₹14,800 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum application requires 14 lots (518 shares) amounting to ₹2,07,200.

The Book Running Lead Managers (BRLMs) for this issue are Motilal Oswal Investment Advisors Limited, IIFL Securities Limited, and JM Financial Limited, while the registrar for the IPO is KFin Technologies Limited.

Anchor Investors and Institutional Interest

Ellenbarrie Industrial Gases successfully raised ₹255.75 Crores from Anchor Investors ahead of the public issue. This allocation was done at the upper end of the price band (₹400) and resulted in the company allotting 63,93,938 equity shares in coordination with the lead managers.

It is important to note that shares allotted to anchor investors are carved out of the Qualified Institutional Buyers (QIB) reservation portion. Such early subscriptions indicate institutional confidence in the company's fundamentals, though not necessarily a listing gain signal.

Grey Market Premium (GMP) and Subscription Status

As of now, the Grey Market Premium (GMP) for Ellenbarrie Industrial Gases IPO remains ₹0, pointing towards a flat expected listing price. The GMP reflects no premium or discount, meaning investor sentiment in the grey market is neutral.

Live data as of 11:00 AM on June 25, 2025, shows that the IPO has been subscribed 0.13 times on the second day of its opening. This subscription data will be closely watched by analysts and investors alike as the issue progresses.

Financial Performance Snapshot

Ellenbarrie Industrial Gases has shown a consistent growth trajectory over the past three fiscal years:

• Revenue from operations increased from ₹2,237.10 million in FY23 to ₹2,902.03 million in FY24, and reached ₹3,484.32 million in FY25.

• EBITDA also improved significantly from ₹521.91 million (FY23) to ₹822.58 million (FY24), and to ₹1,456.85 million in FY25.

• Profit After Tax (PAT) increased from ₹281.42 million in FY23 to ₹452.89 million in FY24 and reached ₹832.89 million in FY25, demonstrating solid upward momentum.

These results underscore the company’s operational efficiency and revenue scalability in a competitive industrial sector.

Valuation and Return Metrics

When examining the valuation ratios, the Ellenbarrie IPO appears to be fairly priced relative to peers and industry standards:

• Pre-Issue EPS: ₹6.36

• Post-Issue EPS: ₹5.91

• Pre-Issue P/E Ratio: 62.89x

• Post-Issue P/E Ratio: 67.69x

• Industry Average P/E: 141x

The company’s Return on Capital Employed (ROCE) stands at 13.71%, Return on Equity (ROE) at 16.88%, and Return on Net Worth (RoNW) at 24.97%, reflecting a strong financial position and reasonable profitability for its size.

IPO Objectives

The company plans to utilise the net proceeds raised from the IPO for the following key purposes:

1. Repayment/prepayment of certain borrowings – ₹2,100 million

2. Setting up a new air separation unit at Uluberia-II plant with a 220 TPD capacity – ₹1,045 million

3. General corporate purposes, including working capital, admin costs, and operational expansions

These steps are aimed at debt reduction, capacity enhancement, and overall financial strengthening.

Allotment and Listing Timeline

The Ellenbarrie IPO allotment will likely be finalised by June 27, 2025 (Friday), and investors can check their status on the registrar’s website (KFintech) using their application number, PAN, or DP ID.

The tentative listing date for the IPO is July 01, 2025 (Tuesday), on both BSE and NSE.

Company Background and Leadership

Led by Chairman and Managing Director Padam Kumar Agarwala, who holds over 40 years of industry experience, and Joint Managing Director Varun Agarwal, with more than 15 years in the sector, the leadership of Ellenbarrie is deeply entrenched in the industrial gases domain.

The company has continuously evolved and expanded, making it a flag-bearer of Indian ownership and manufacturing excellence in the oxygen and gases segment.

IPO Review and Investment Recommendation

While the company showcases impressive financials, stable growth, and solid return metrics, there are no indications of listing gains as the Grey Market Premium remains zero. Additionally, despite its operational strength and fair valuations, the lack of early excitement in the grey market and subdued initial subscription levels suggest a tepid listing scenario.

Therefore, the IPO appears more suitable for long-term investors who understand the industrial gas sector rather than those seeking quick listing gains. Most analysts recommend avoiding this IPO for listing gains, though it might be worth a look for long-term investment portfolios.

Disclaimer: This content is intended for educational and informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research and consult a registered financial advisor before making any investment decisions. Investment in securities is subject to market risk, and past performance is not indicative of future results.

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