Shares of Ellenbarrie Industrial Gases Ltd continued to decline on Wednesday as investors booked profits following the company’s impressive stock market debut earlier this week. At 11:28 AM, the stock was trading at Rs 522.25, down 2.31 per cent on the NSE.
Despite the decline, the stock still trades over 30 per cent above its IPO price of Rs 400. Ellenbarrie’s market capitalisation stands at approximately Rs 7,200 crore.
Strong debut met with short-term selling pressure
Ellenbarrie made its debut on July 1, listing at Rs 492 on the BSE and Rs 486 on the NSE, delivering a premium of over 23 per cent and 21 per cent respectively. The stock surged to a 52-week high of Rs 563, but selling pressure has emerged in subsequent sessions.
IPO funds to be used for debt repayment and capacity expansion
The company has outlined its IPO fund utilisation plan: Rs 210 crore to repay or prepay outstanding borrowings, Rs 104.5 crore to set up a 220 TPD air separation unit at its Uluberia-II facility. Remaining funds for general corporate purposes. This financial restructuring aims to reduce leverage and strengthen operational capacity.
Institutional investors enter via block deals
Block deal data from the listing day shows heavy institutional interest:
1) Motilal Oswal Mutual Fund acquired 20.95 lakh shares at Rs 511.1
2) Mansi Share and Stock Broking sold 4.06 lakh shares at Rs 529.36 and bought 7.56 lakh shares at Rs 524.57
These transactions signal confidence in the company’s long-term fundamentals.
Company overview: Ellenbarrie Industrial Gases
Established in 1973, Ellenbarrie is a key player in India’s industrial and medical gases sector. The firm produces and supplies a wide range of gases including oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, LPG, and more.
It serves industries like steel, pharma, healthcare, defence, railways, and petrochemicals. With eight manufacturing facilities across West Bengal, Andhra Pradesh, Telangana, and Chhattisgarh, Ellenbarrie caters to over 1,800 customers nationwide.
