Navigating the Ellenbarrie Industrial Gases IPO: A Comprehensive Guide for Investors
In the bustling landscape of public market offerings, understanding each opportunity is key to making informed investment decisions. As the market anticipates the Ellenbarrie Industrial Gases IPO, a deeper dive into its profile, financials, and future prospects becomes essential. This post aims to provide a clear, detailed analysis to help you evaluate this upcoming offering.
**Unveiling Ellenbarrie Industrial Gases Limited**
Established in 1973, Ellenbarrie Industrial Gases Limited (EIGL) has carved a significant niche as a prominent Indian manufacturer and supplier of a diverse range of industrial, medical, and speciality gases. Their extensive product portfolio includes essential gases like oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon, and nitrous oxide, alongside offerings such as dry ice and medical equipment.
**Diverse Offerings and Broad Market Reach**
- Comprehensive Services: Beyond gas supply, EIGL provides project engineering for designing and installing large-scale air separation units (ASUs) and offers crucial medical gas pipeline solutions for healthcare facilities.
- Varied Customer Segments: The company caters to a wide spectrum of clients, categorized into bulk (liquefied gases via tankers), package (compressed gases in cylinders), and onsite customers (direct gas supply and maintenance).
- Extensive Industry Footprint: EIGL's services are vital to sectors including:
- Steel manufacturing (supplying to major players).
- Pharmaceuticals & Chemicals (serving leading laboratories).
- Healthcare (partnering with renowned medical institutions).
- Engineering & Infrastructure.
- Railways, Aviation & Space Research.
- Petrochemicals and Defence.
- Operational Scale: In Fiscal 2025, EIGL served 1,829 customers and operates eight manufacturing facilities strategically located across India. The company boasts a significant workforce of 281 permanent and 85 contractual employees.
**Understanding the Public Offering Structure**
The Ellenbarrie Industrial Gases IPO is a book-built issue, combining fresh equity shares and an offer for sale by existing shareholders.
**Core IPO Details**
| Detail | Description |
|---|---|
| Face Value | ₹2 per share |
| Issue Price Band | ₹380 to ₹400 per share |
| Total Issue Size | 2,13,13,130 shares (aggregating up to ₹852.53 Cr) |
| Fresh Issue | 1,00,00,000 shares (₹400.00 Cr) |
| Offer for Sale (OFS) | 1,13,13,130 shares (₹452.53 Cr) |
| Listing At | BSE, NSE |
**IPO Reservation Categories**
The issue has specific allocations for different investor categories:
- Qualified Institutional Buyers (QIB): Not more than 50% of the Offer
- Retail Investors: Not less than 35% of the Offer
- Non-Institutional Investors (NII): Not less than 15% of the Offer
**The IPO Journey: Key Dates**
Follow the Ellenbarrie Industrial Gases IPO from opening to listing:
*All dates are tentative and subject to change by the company/regulators.*
**Investment Lot Sizes**
Investors can bid for a minimum of 37 shares and in multiples thereof. The investment amount varies based on investor category:
| Application Category | Minimum Lots | Minimum Shares | Minimum Amount | Maximum Shares | Maximum Amount |
|---|---|---|---|---|---|
| Retail | 1 | 37 | ₹14,800 | 481 | ₹1,92,400 |
| S-HNI (Small HNI) | 14 | 518 | ₹2,07,200 | 2,479 | ₹9,91,600 |
| B-HNI (Big HNI) | 68 | 2,516 | ₹10,06,400 | - | - |
**Financial Performance and Valuation Insights**
A thorough examination of Ellenbarrie Industrial Gases Limited's financials reveals a company on a growth trajectory.
**Recent Financial Highlights (Restated)**
| Metric (₹ Crore) | March 31, 2025 | March 31, 2024 | March 31, 2023 |
|---|---|---|---|
| Assets | 845.97 | 672.54 | 551.27 |
| Revenue | 348.43 | 290.20 | 223.71 |
| Profit After Tax (PAT) | 83.29 | 45.29 | 28.14 |
| EBITDA | 109.74 | 61.53 | 33.59 |
| Net Worth | 333.62 | 250.15 | 203.32 |
| Total Borrowing | 245.30 | 176.90 | 101.10 |
The company has demonstrated robust financial growth, with revenue increasing by 20% and profit after tax (PAT) surging by 84% between fiscal year 2024 and 2025.
**Key Performance and Valuation Metrics (as of March 31, 2025)**
| Indicator | Value |
|---|---|
| Market Capitalization | ₹5637.42 Cr |
| Return on Equity (ROE) | 16.88% |
| Return on Capital Employed (ROCE) | 13.71% |
| Debt/Equity Ratio | 0.32 |
| Return on Net Worth (RoNW) | 24.97% |
| PAT Margin | 23.90% |
| EBITDA Margin | 35.12% |
| Price to Book Value | 20.93 |
| Earnings Per Share (Pre IPO) | ₹6.36 |
| Price to Earnings (P/E) (Pre IPO) | 62.88x |
| Earnings Per Share (Post IPO) | ₹5.91 |
| Price to Earnings (P/E) (Post IPO) | 67.69x |
*Note: Pre IPO EPS/P/E is based on pre-issue shareholding and latest FY earnings. Post Issue EPS/P/E reflects post-issue shareholding and annualized FY earnings.*
**Strategic Utilization of IPO Proceeds**
The funds raised from the IPO are earmarked for key strategic initiatives aimed at strengthening Ellenbarrie Industrial Gases Limited's financial position and expanding its operational capabilities:
- Debt Reduction: Approximately ₹210.00 crores will be utilized for repayment or prepayment of certain existing borrowings, enhancing the company's financial flexibility.
- Capacity Expansion: A significant portion, around ₹104.50 crores, is allocated for setting up a new Air Separation Unit (ASU) with a capacity of 220 TPD at their Uluberia-II plant. This expansion is crucial for meeting growing demand.
- General Corporate Needs: The remaining proceeds will be deployed for various general corporate purposes, supporting ongoing business operations and future growth initiatives.
**Leadership and Key Stakeholders**
**Company Promoters**
The company is promoted by Padam Kumar Agarwala and Varun Agarwal, who have steered its growth and strategic direction.
| Shareholding Status | Percentage |
|---|---|
| Pre-Issue Promoter Holding | 96.47% |
| Post-Issue Promoter Holding | (Value to be calculated post IPO) |
**Key Professionals Facilitating the IPO**
The IPO process is managed by experienced financial intermediaries:
- Book Running Lead Managers: Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited, and JM Financial Limited.
- IPO Registrar: Kfin Technologies Limited, responsible for managing the application process, allotment, and refunds.
**Strategic Assessment: A SWOT Analysis**
To provide a balanced perspective, here's a concise SWOT analysis for Ellenbarrie Industrial Gases Limited:
**Strengths**
- Strong Customer Relationships: Long-term associations with a diversified customer base across critical industries.
- Robust Financial Growth: Demonstrated significant increase in both revenue and profitability in recent years.
- Diversified Product & Service Portfolio: Catering to industrial, medical, and specialty gases, along with engineering and medical equipment services.
- Established Market Presence: Operates multiple facilities nationwide, serving a wide array of key sectors.
**Weaknesses**
- Valuation Concerns: The IPO appears aggressively priced based on current financial data, which might limit immediate listing gains.
- Capital Intensive Business: Manufacturing industrial gases requires significant investment in infrastructure and technology.
- Dependency on Industrial Cycles: Performance can be influenced by the health of key industries served (steel, chemicals, etc.).
**Opportunities**
- Growing Demand: Increasing industrialization and healthcare needs in India drive demand for industrial and medical gases.
- Expansion Potential: Utilization of IPO funds for new ASU setup indicates plans for capacity and market share growth.
- Strategic Positioning: As an Indian manufacturer, the company may benefit from domestic policies and 'Make in India' initiatives.
**Threats**
- Intense Competition: Presence of established domestic and international players in the industrial gases sector.
- Regulatory Changes: Potential impact from evolving environmental and industrial regulations.
- Raw Material Price Volatility: Fluctuations in energy costs and other raw materials can affect profitability.
- Economic Slowdown: A general economic downturn could reduce industrial activity and gas consumption.
**Important Questions About the IPO**
Here are answers to some frequently asked questions about the Ellenbarrie Industrial Gases IPO:
- What is the Ellenbarrie Industrial Gases IPO?
It is a main-board IPO comprising 2,13,13,130 equity shares with a face value of ₹2 each, aggregating up to ₹852.53 Crores. The price band is ₹380 to ₹400 per share, with a minimum order quantity of 37 shares. The shares are proposed to be listed on BSE and NSE. - How can I apply for the Ellenbarrie Industrial Gases IPO?
You can apply online through your stockbroker's platform using UPI (Unified Payments Interface) as a payment gateway, or directly through your bank's net banking portal via ASBA (Applications Supported by Blocked Amount). - When does the Ellenbarrie Industrial Gases IPO open and close?
The IPO opens for subscription on June 24, 2025, and closes on June 26, 2025. - What is the lot size for the Ellenbarrie Industrial Gases IPO?
The minimum lot size for the IPO is 37 shares, requiring a minimum investment of ₹14,800 for retail investors at the upper price band. - When is the Ellenbarrie Industrial Gases IPO allotment and listing expected?
The finalization of the Basis of Allotment is tentatively scheduled for Friday, June 27, 2025. Allotted shares are expected to be credited to your demat account by Monday, June 30, 2025. The tentative listing date is Tuesday, July 1, 2025.
**Final Thoughts for Potential Investors**
Ellenbarrie Industrial Gases Limited presents an intriguing investment opportunity, backed by a strong operational history, diverse customer base, and impressive financial growth. The company operates in an essential sector, benefiting from ongoing industrial expansion and healthcare demands. While the valuation appears to be at a premium, its strategic objectives for debt reduction and capacity expansion underscore a clear path for future growth.
For those considering participation, it's advisable to conduct your own detailed research, consider the long-term industry outlook, and evaluate the IPO against your personal investment goals and risk tolerance. Consulting a qualified financial advisor can provide tailored insights to aid your decision-making process.