Ellenbarrie Industrial Gases IPO: The initial share sale window of Ellenbarrie Industrial Gases will be opened on Tuesday, June 23 and investors remain bid for three days until Thursday, June 25. The company has fixed the price band for shares between Rs 380 and Rs 400 per share aimed at raising Rs 852 crore.
The IPO comprised a fresh issue of shares worth Rs 400 crore and an offer for sale (OFS) of 1.13 crore shares valued at Rs 452.53 crore. Investors can bid for a minimum of 37 shares in a lot and multiples thereafter.
Ellenbarrie Industrial Gases IPO: Should you subscribe?
Analysts at domestic brokerage have recommended to subscribing the IPO.
SBI Securities’ analysts suggest investors to subscribe the issue at the cut-off price, citing that at the upper price band of Rs 400, the stock is likely to trade at 67.7x FY25 EPS post issue, which is at a discount to peer Linde India.
“EIGL has an improving margin profile, in-line with the rising share of higher margin Argon gas and onsite projects. Debt repayment from the IPO proceeds will lower interest cost,” according to the brokerage.
Another brokerage, Bajaj Broking, has advised investors to applying the IPO for medium to long-term investment horizon.
According to Bajaj Broking’s analysts, the IPO is reasonably valued, supported by visible growth levers such as capacity addition, margin improvement, and reduced leverage.
However, the brokerage cautioned investors that should be mindful of sector-specific risks like high capital intensity, regulatory challenges, and sensitivity to input costs.
Ellenbarrie Industrial Gases: Minimum investment, lot size, use of proceeds
Ellenbarrie Industrial Gases is launching its IPO with a minimum lot size of 37 shares, and investors can bid in multiples of this amount. The company intends to utilize Rs 210 crore from the fresh issue to repay existing debt, while Rs 104.50 crore will be invested in setting up a new air separation unit at its Uluberia-II plant in West Bengal. The remaining proceeds will be allocated for general corporate purposes.
Ellenbarrie Industrial Gases: Financial performance
In terms of financial performance, Ellenbarrie Industrial Gases reported a strong year in FY2024–25, with revenue from operations increasing by 16 per cent to Rs 312.48 crore, compared to Rs 269.48 crore in the previous fiscal. Net profit also saw a significant rise of 84 per cent, reaching Rs 83.29 crore from Rs 45.29 crore.
Ellenbarrie Industrial Gases: BRLMs, registrar, allocation structure
The IPO allocation is structured to reserve 50 per cent of the issue for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional investors. The book-running lead managers for the IPO are Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial, with KFin Technologies appointed as the registrar.
What does Ellenbarrie Industrial Gases do?
Ellenbarrie Industrial Gases manufactures and supplies a wide range of industrial gases, including dry ice, synthetic air, fire-fighting gases, medical oxygen, LPG, welding mixtures, and speciality gases. These products cater to various industries across India.
(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)
