Ellenbarrie Industrial Gases Limited is launching its Initial Public Offering (IPO) to raise funds for business expansion and working capital. The IPO comprises a fresh issue of 1.00 crore shares aggregating to Rs. 400.00 crores and an offer for sale of 1.13 crore shares aggregating to Rs. 452.53 crores with a face value of Rs. 2 each.
The total offer size aggregates up to Rs. 852.53 crore. The IPO opens for subscription on June 24, 2025, and closes on June 26, 2025. The shares will be listed on both the NSE and the BSE after the IPO concludes.
GMP of Ellenbarrie Industrial Gases Limited IPO
As of June 23rd, 2025, the shares of Ellenbarrie Industrial Gases Limited in the grey market were trading at a 2.50 percent premium. The shares in the Grey Market traded at Rs. 410. This gives it a premium of Rs. 10 per share over the cap price of Rs. 400.
Overview of Ellenbarrie Industrial Gases Limited
Ellenbarrie Industrial Gases Limited (EIGL), incorporated in 1973, is a leading Indian company specializing in the production and supply of industrial, medical, and specialty gases. EIGL provides essential gases such as oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon, and nitrous oxide, along with dry ice, synthetic air, fire-fighting gases, medical oxygen, LPG, welding mixtures, and specialty gases, catering to a diverse range of industries.
EIGL offers project engineering services for designing, installing, and commissioning tonnage air separation units, as well as medical gas pipeline solutions and medical equipment supply. The company serves customers through three main channels: bulk customers (liquefied gases via cryogenic tankers), package customers (compressed gases in cylinders), and onsite customers (onsite gas supply with operations and maintenance).
Promoters of Ellenbarrie Industrial Gases Limited
The promoters of Ellenbarrie Industrial Gases Limited are Padam Kumar Agarwala and Varun Agarwal. They bring deep expertise in the industrial gases sector and a strong commitment to innovation and customer service. Their leadership has been instrumental in driving the company’s growth and establishing it as a trusted name in the industry.
Offer For Sale
The Offer for Sale involves two promoter selling shareholders: Padam Kumar Agarwala and Varun Agarwal. Padam Kumar Agarwala is offering up to 5,656,565 equity shares at a weighted average cost of acquisition of Rs. 5.29 per share. Varun Agarwal is offering up to 5,656,565 equity shares at a weighted average cost of acquisition of Rs. 10.49 per share. The total value for each will be determined based on the final offer price.
Lead Managers of Ellenbarrie Industrial Gases IPO
Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited, and JM Financial Limited are acting as the Book Running Lead Manager. KFin Technologies Limited is the registrar managing investor applications and allotment.
Objectives of the IPO Offer
Ellenbarrie Industrial Gases Limited aims to use the proceeds from its IPO for three main purposes. The company will allocate Rs. 210 crore to repay or prepay certain outstanding borrowings, strengthening its balance sheet.
Additionally, Rs. 104.5 crore will be invested in setting up a new air separation unit at the Uluberia-II plant, with a capacity of 220 tonnes per day. The remaining funds will be used for general corporate purposes, supporting ongoing operations and future growth opportunities.
Financial Analysis of Ellenbarrie Industrial Gases
Ellenbarrie Industrial Gases Limited’s revenue increased from Rs. 223.71 crore in FY23 to Rs. 290.20 crore in FY24, marking a growth of 29.7 percent. In FY25, revenue rose to Rs. 348.43 crore, a further increase of 20 percent over FY24.
Net profit grew from Rs. 28.14 crore in FY23 to Rs. 45.29 crore in FY24, a rise of 61 percent. In FY25, profit after tax increased to Rs. 83.29 crore, representing a significant jump of 82 percent over the previous year. Ellenbarrie Industrial Gases Limited’s revenue and net profit have grown at a CAGR of 24.80 percent and 72.04 percent, respectively, over the last two years.
Ellenbarrie Industrial Gases Limited vs Peers
Ellenbarrie Industrial Gases Limited reported a standalone face value per equity share of Rs. 2.00, with an EPS (Basic & Diluted) of Rs. 6.36 and a net asset value (NAV) per share of Rs. 25.48 for FY2025. The company’s P/E ratio is not available, but it achieved a strong Return on Net Worth (RoNW) of 24.97%.
In comparison, Linde India Limited, a listed peer, reported a consolidated face value of Rs. 10.00 per share, an EPS (Basic & Diluted) of Rs. 53.33, and a NAV per share of Rs. 447.91 for the same period. Linde India’s P/E ratio stands at 140.74, while its RoNW is 11.91%. This highlights Ellenbarrie’s higher RoNW, despite differences in scale and capital structure.
Ellenbarrie Industrial Gases Limited Strengths and Weaknesses
Strengths:
- Leading Manufacturer of Industrial Gases, Well Positioned to Capitalise on Industry Tailwinds.
- Comprehensive Product Portfolio, Catering to Diverse End-use Industries.
- Long-standing Customer Relationships Leading to Stable Cash Flows
- Diversified Customer Base, Minimizing Concentration Risk
- Expansive Operational and Distribution Capabilities across East and South India
Weaknesses:
- Customer Dependency: Loss or reduced demand from key customers could hurt the business, cash flows, and financial condition.
- Facility Disruptions: Unscheduled or prolonged facility shutdowns may negatively impact its operations.
- Onsite Facility Risks: Deterioration in customer relationships at onsite locations could affect the business.
- Operational Risks: Failure to manage hazardous gas-related risks may adversely impact the operations.
- Legal Risks: Adjudication proceedings against related entities may pose additional risks to the business.
Conclusion
Ellenbarrie Industrial Gases Limited’s IPO provides investors an opportunity to invest in a well-established leader in the industrial and medical gases sector, with a strong track record and experienced promoters. The company’s expansion plans, diverse customer base, and robust operational capabilities position it well for future growth. Investors should carefully assess the company’s financials, sector trends, and prevailing market conditions before making any investment decisions.
Written by Sridhar J
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