Ellenbarrie Industrial Gases Limited (EIGL), one of India’s oldest industrial gases companies with over five decades of operational legacy, has launched its Initial Public Offering (IPO) from June 24 to June 26, 2025. The total issue size is ₹852.53 crore, comprising a fresh issue worth ₹400 crore and an Offer for Sale (OFS) of ₹452.52 crore. The company has set the price band between ₹380 and ₹400 per equity share, and the tentative listing date on BSE and NSE is set for Tuesday, July 1, 2025.

EIGL is a 100% Indian-owned industrial gas producer, leading in terms of installed manufacturing capacity, revenue, and profitability in Fiscal 2024. It operates one of the largest oxygen plants in India, with a capacity of 1250 TPD at Uluberia, West Bengal.

With a rich history and established footprint, EIGL presents a compelling story in the industrial manufacturing segment. However, market sentiment around its IPO has remained cautious, largely due to the absence of Grey Market Premium (GMP) and conservative listing expectations.

IPO STRUCTURE AND INVESTMENT TERMS

The Ellenbarrie IPO offers:

• Fresh Issue: 1 crore shares, raising ₹400 crore

• Offer for Sale (OFS): 1.1313 crore shares, totaling ₹452.52 crore

At the upper band price of ₹400, the market capitalisation stands at ₹5,637.42 crore.

• Lot Size: 37 shares

• Minimum Investment for Retail Investors: ₹14,800

• Minimum Investment for HNIs: 14 lots or 518 shares, amounting to ₹2,07,200

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

ANCHOR INVESTOR PARTICIPATION

Ellenbarrie Industrial Gases successfully raised ₹255.75 crore from Anchor Investors, who were allotted 63,93,938 equity shares at ₹400. This shows institutional support for the IPO, though it has not translated into strong interest among retail or HNI segments as per early subscription data.

LIVE IPO SUBSCRIPTION STATUS

As of 11:00 AM on June 24, 2025, the IPO has been subscribed only 0.03 times, suggesting limited investor enthusiasm. The early trend hints that most investors are adopting a wait-and-watch approach, possibly due to the neutral GMP trend and valuation metrics.

GREY MARKET PREMIUM (GMP)

The Ellenbarrie Industrial Gases IPO GMP is currently at ₹0, as per the last updated data on June 20, 2025. With no activity in the grey market, it reflects that no listing gains are expected, and price discovery will only happen on listing day. This aligns with the cautious sentiment observed in IPO subscription numbers.

OBJECTIVES OF THE IPO

EIGL intends to utilize the net proceeds of the IPO as follows:

1. ₹210 crore for repayment or prepayment of existing borrowings

2. ₹104.5 crore for setting up an air separation unit with 220 TPD capacity at Uluberia-II plant

3. Remaining funds for general corporate purposes

These investments aim to expand capacity, reduce debt, and enhance operational efficiency, strengthening the company’s long-term growth prospects.

FINANCIAL PERFORMANCE

EIGL has demonstrated consistent financial growth over the last three fiscal years, reflecting a positive business trajectory:

• Revenue from Operations:

  • FY23: ₹2,237.10 million

  • FY24: ₹2,902.03 million

  • FY25: ₹3,484.32 million

• EBITDA:

  • FY23: ₹521.91 million

  • FY24: ₹822.58 million

  • FY25: ₹1,456.85 million

• Profit After Tax (PAT):

  • FY23: ₹281.42 million

  • FY24: ₹452.89 million

  • FY25: ₹832.89 million

These figures reflect steady operational growth and improving profitability. The numbers also highlight increasing efficiency, visible in the rising EBITDA margins and PAT margins year-on-year.

VALUATION AND PEER COMPARISON

• Pre-Issue EPS (FY24): ₹6.36

• Post-Issue EPS (FY24): ₹5.91

• Pre-Issue P/E Ratio: 62.89x

• Post-Issue P/E Ratio: 67.69x

• Industry P/E Average: ~141x

• ROE: 16.88%

• RoNW: 24.97%

• ROCE: 13.71%

While the valuation appears rich, especially on a post-issue P/E basis, it still trades below the industry average, suggesting that EIGL’s IPO is fairly priced, but not undervalued. It leaves limited room for speculative upside, especially in the short term.

MANAGEMENT & INDUSTRY OUTLOOK

The company benefits from the experienced leadership of Chairman and Managing Director Padam Kumar Agarwala, with over 40 years of industry experience, and Joint Managing Director Varun Agarwal, who brings over 15 years of expertise.

EIGL is well-positioned in the industrial gases segment, which plays a critical role in sectors such as steel, healthcare, pharmaceuticals, chemicals, and manufacturing. The demand outlook remains positive, especially in India’s growing industrial base.

IPO ALLOTMENT STATUS – HOW TO CHECK

The allotment for Ellenbarrie IPO is expected to be finalized on June 27, 2025. Investors can check their allotment status online by:

• Visiting KFin Technologies allotment portal

• Selecting Ellenbarrie Industrial Gases IPO

• Entering PAN, Application Number, or DP Client ID

• Clicking on submit to view status

This will allow investors to determine whether they have received an allotment and plan their next steps accordingly.

FINAL REVIEW – SHOULD YOU INVEST?

Based on the analysis of Ellenbarrie Industrial Gases IPO, it is evident that:

• The financials are robust, with consistent revenue and profit growth

• The valuation is fair, relative to peers

• The absence of GMP and weak subscription suggests no strong listing momentum

Thus, investors looking for listing gains may be disappointed, and it is recommended to avoid this IPO for short-term returns. However, long-term investors who believe in the industrial gas sector may consider entry based on the company’s fundamentals.

This assessment incorporates all key aspects like Ellenbarrie Industrial Gases IPO, Ellenbarrie IPO review, Ellenbarrie IPO GMP, Ellenbarrie IPO allotment status, Ellenbarrie IPO subscription status, and Ellenbarrie IPO valuation to guide investment decisions with clarity and transparency.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or a recommendation to buy or sell securities. Always consult a SEBI-registered financial advisor before making investment decisions. Investing in the stock market involves market risk.

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