Ellenbarrie Industrial Gases Limited IPO Details:
| Category | Detail |
|---|---|
| IPO Open Date | June 24, 2025 |
| IPO Close Date | June 26, 2025 |
| Price Band | ₹380 to ₹400 per share |
| Face Value | ₹2 per equity share |
| Issue Type | Book Built Issue |
| Total Issue Size | ₹852.53 crore |
| Fresh Issue | ₹400.00 crore (1,00,00,000 shares) |
| Offer for Sale (OFS) | ₹452.53 crore (1,13,13,130 shares by promoters) |
| Minimum Lot Size (Retail) | 37 shares |
| Minimum Investment (Retail) | ₹14,060 (at lower band) – ₹14,800 (at upper band) |
| Listing At | BSE & NSE |
| Lead Managers | Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited, JM Financial Limited |
| Registrar | KFin Technologies Limited |
| Tentative Allotment Date | June 27, 2025 |
| Tentative Listing Date | July 1, 2025 |
Tentative IPO Timeline:
| IPO Open Date | Tue, Jun 24, 2025 |
| IPO Close Date | Thu, Jun 26, 2025 |
| Tentative Allotment | Fri, Jun 27, 2025 |
| Initiation of Refunds | Mon, Jun 30, 2025 |
| Credit of Shares to Demat | Mon, Jun 30, 2025 |
| Tentative Listing Date | Tue, Jul 1, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 26, 2025 |
Objective
- Repayment/Pre-payment of Certain Outstanding Borrowings: ₹210 crore from the fresh issue will be used to reduce the company’s debt, which stood at ₹245.30 crore as of FY25. This aims to deleverage the balance sheet, lower interest costs, and improve financial flexibility.
- Setting up of an Air Separation Unit (ASU): ₹104.50 crore will be utilized to establish a new 220 TPD ASU at its Uluberia-II plant. This will expand production capacity and support future growth.
- General Corporate Purposes: The remaining funds will be allocated for general business operations, strategic initiatives, and other corporate needs.
Pros (Strengths):
- Market Leadership and Legacy: A long-standing player and the largest 100% Indian-owned industrial gas company, instilling confidence.
- Diversified Product Portfolio: Caters to a wide range of industries with various gases, reducing dependence on a single sector.
- Strong Customer Relationships: High repeat customer base, including critical government and defense institutions.
- Robust Financial Growth: Demonstrated significant revenue and profit growth in recent fiscal years, particularly in FY25.
- Strategic Use of IPO Proceeds: Debt reduction and capacity expansion are clear objectives that can lead to improved financial health and future growth.
- High Purity and Niche Products: Focus on specialty gases (like synthetic air, ultra-high-purity nitrogen) offers higher margins and differentiated offerings.
- Vertical Integration and Distribution Network: Own fleet of cryogenic tankers and wide cylinder distribution enhance efficiency and market reach.
Cons (Weaknesses/Risks):
- Significant OFS Component: A large portion of the IPO (over 50%) is an Offer for Sale, meaning the funds from this portion go to the selling promoters and not into the company.
- Capital-Intensive Nature: The industry requires continuous substantial capital investment, which could put pressure on the balance sheet.
- Competition from Global Giants: Faces competition from large multinational players with greater resources, technology, and global reach.
- Susceptibility to Industrial Cycles: Demand for industrial gases is tied to the performance of end-user industries (steel, chemicals), making the company’s revenue cyclical.
- Valuation (based on FY24 EPS): At the upper price band of ₹400, the implied P/E ratio based on FY24 EPS stands at approximately 115.6x, which appears quite high. However, if FY25 EPS is considered (₹6.36), then the P/E for FY25 would be closer to 63x (400/6.36). This still seems premium compared to some peers, but it is important to check the restated financials for the exact EPS used for valuation by the company in the RHP.
- Increasing Borrowings (Pre-IPO): While the IPO aims to reduce debt, the company’s total borrowings have been on an increasing trend in recent years.
Ellenbarrie Industrial Gases Limited: An Overview
Company Overview: Founded in 1973, Ellenbarrie Industrial Gases Limited (EIGL) is one of India’s oldest and largest 100% Indian-owned industrial gas companies. With a legacy spanning over 50 years, EIGL is a prominent manufacturer and supplier of a diverse range of industrial, medical, and specialty gases. Headquartered in Kolkata, the company boasts significant operational and distribution capabilities across East, South, and Central India, with nine manufacturing facilities.
Core Business: Ellenbarrie Industrial Gases’ core business revolves around the production and supply of a comprehensive portfolio of gases and related services:
- Industrial Gases: This includes a wide array of gases like oxygen, nitrogen, argon, carbon dioxide, acetylene, helium, and hydrogen, catering to various heavy industries.
- Medical Gases: They are a crucial supplier of medical oxygen and other medical gases to healthcare institutions, playing a vital role during health crises (e.g., COVID-19 pandemic).
- Specialty Gases: The company offers niche products such as synthetic air (a controlled mix of oxygen and nitrogen with low impurity levels, used for calibrating environmental testing equipment) and ultra-high-purity nitrogen for the electronics sector.
- Dry Ice: Production and supply of dry ice for various applications.
- Project Engineering Services: EIGL leverages its technical expertise for the design, engineering, supply, installation, and commissioning of tonnage Air Separation Units (ASUs) on a turnkey basis for customers.
- Medical Gas Pipeline Solutions: They provide turnkey solutions for medical gas pipeline systems in healthcare facilities, including design, installation, commissioning, operation, and maintenance.
- Medical Products and Equipment: Beyond gases, the company supplies medical equipment like anesthesia workstations, spirometers, ventilators, sterilizers, bedside monitors, and lung diffusion testing devices to healthcare institutions.
EIGL serves a diversified customer base across various industries, including steel, pharmaceuticals, chemicals, engineering and infrastructure, aviation and aerospace, defense, space, and healthcare. They have long-standing relationships with key government and defense institutions, railway workshops, and AIIMS hospitals.
Market Position:
- One of the Oldest & Largest Indian-Owned: EIGL prides itself on being one of the oldest operating and the largest 100% Indian-owned industrial gases company in terms of installed manufacturing capacity, revenue, and profitability in Fiscal 2024.
- Significant Manufacturing Capacity: Operates oxygen production plants with a capacity of 1,250 TPD (tonnes per day) and three standalone air separation units, alongside two standalone cylinder filling stations.
- Strong Regional Presence: Market leader in West Bengal, Andhra Pradesh, and Telangana in terms of installed manufacturing capacity.
- Robust Distribution Network: Possesses a large fleet of cryogenic tankers and over 35,000 gas cylinders in circulation, enabling efficient bulk distribution.
- Diversified Customer Base: Served 1,836 customers in Fiscal 2024, with over 85% of revenue derived from repeat customers and over 39% from clients associated for more than 10 years, indicating strong client retention and limited concentration risk.
- Strategic Supplier to Critical Sectors: Key supplier to government and defense institutions, including Indian Air Force bases, Eastern Naval Command, government laboratories, and organizations in the space sector.
Future Outlook:
- Growing Demand for Industrial Gases: The industrial gas market in India is expected to grow, driven by expansion in manufacturing, healthcare, infrastructure, and automotive sectors.
- Capacity Expansion: The IPO proceeds include funds for setting up a new 220 TPD air separation unit at its Uluberia-II plant, which will enhance production capacity and meet increasing demand.
- Diversification into Niche Products/Services: Focus on specialty gases, project engineering, and medical equipment provides avenues for higher-value revenue streams and reduces reliance on commodity gases.
- Debt Reduction: A significant portion of the fresh issue proceeds is allocated to repaying outstanding borrowings, which will improve the company’s financial health, reduce interest costs, and enhance financial flexibility for future growth.
Challenges:
- Capital-Intensive Industry: The industrial gas sector requires significant capital investment for setting up and maintaining production facilities and distribution networks.
- Regulatory Compliance and Safety Norms: Manufacturing and handling industrial gases involve stringent compliance and safety regulations, which can be costly and complex to adhere to.
- Competition: While a large Indian player, EIGL operates in an industry with the presence of global giants like Linde India and Air Products, which have vast resources and technological superiority.
- Raw Material and Energy Price Volatility: The production of industrial gases is energy-intensive, and fluctuations in power and raw material costs can impact profitability.
- Client Concentration (to an extent): While diversified, top 10 customers still contributed ~41% of gas revenue in FY24, indicating some level of dependence.
- Cyclicality of End-User Industries: Revenue is linked to cyclical sectors like steel, chemicals, and manufacturing, making the company susceptible to economic downturns in these industries
How does Ellenbarrie Industrial Gases IPO perform financially?
Financial Performance (₹ Crore):
| Particulars | FY22 (Mar 31, 2022) | FY23 (Mar 31, 2023) | FY24 (Mar 31, 2024) | FY25 (Mar 31, 2025) |
|---|---|---|---|---|
| Revenue | 245 | 205 | 269 | 348.43 |
| Profit After Tax | 67.16 | 28.14 | 45.29 | 83.29 |
| Total Assets | 414.06 | 551.27 | 672.54 | 845.97 |
| Net Worth | 178.59 | 203.32 | 250.15 | 333.62 |
| Total Borrowings | 10.71 | 101.10 | 176.90 | 245.30 |
Key Perfomance Indicator(KPI)
| KPI | Values |
|---|---|
| ROE | 16.88% |
| ROCE | 13.71% |
| Debt/Equity | 0.32 |
| RoNW | 24.97% |
| PAT Margin | 23.90% |
| EBITDA Margin | 35.12% |
| Price to Book Value | 20.93 |
Competitive Analysis: Ellenbarrie Industrial Gases – Market Peers
The Indian industrial gas market is largely dominated by a few major players, both domestic and international. Key competitors include:
- Linde India Limited: A subsidiary of Linde plc, a global leader in industrial gases. Linde India is a formidable competitor with vast resources, technological superiority, and a strong market presence. Their P/E ratio (based on FY25) is stated as 140.74x in some reports, indicating a premium valuation for the industry leader.
- Praxair India Pvt Ltd (now part of Linde plc): Another global player with significant operations in India.
- Air Liquide India: A subsidiary of the French multinational Air Liquide, known for its advanced technologies and wide range of industrial gases.
- Other smaller/regional players: There are several smaller or regional players that cater to specific niches or geographies.
Ellenbarrie Industrial Gases Limited IPO GMP
As of Friday, June 20, 2025, the Grey Market Premium (GMP) for Ellenbarrie Industrial Gases Limited IPO is reported to be ₹0.
This means there is currently no implied listing gain in the grey market at the upper price band of ₹400. It’s important to note that GMP can be highly volatile and is not an official indicator, reflecting speculative interest.
Disclaimer:
- IPO Grey Market Premium (Ellenbarrie Industrial Gases Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Ellenbarrie Industrial Gases Limited IPO
🔴 Live Subscription Status 🔴
24/06/2025 10:00 AM
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