Ellenbarrie Industrial Gases IPO kicks off for bidding: Should you subscribe?

Ellenbarrie Industrial Gases is set to launch its initial public offering (IPO) on Tuesday, June 24 with a price band of Rs 380-400 per share. The IPO will close for subscription on Thursday, June 26. Bids can be made for a minimum of 37 equity shares and its multiples thereafter.

Ellenbarrie is set to raise Rs 852.53 crore via IPO, comprising a fresh issue of Rs 400 crore and an offer-for-sale (OFS) of 1.44 crore shares by promoters .The proceeds are intended to reduce debt, fund a new 220 TPD air separation unit at the Uluberia-II facility and general corporate purposes. Last heard, it was commanding a grey market premium of Rs 7 apiece, suggesting a flat listing.

Kolkata-based Ellenbarrie Industrial Gases manufactures a variety of industrial gases, including oxygen, carbon dioxide, acetylene, and helium, serving sectors such as steel, pharmaceuticals, and healthcare. As of April 2025, the company’s outstanding debt was Rs 264.2 crore, and it plans to utilise Rs 210 crore from the fresh issue proceeds to repay this debt.

Ellenbarrie Industrial Gases raised Rs 255.8 crore from anchor investors as it allocated 63,93,938 shares at a price of Rs 400 apiece. Its anchor book included names like Ashoka Whiteoak ICAV, Eastspring Investments, Clarus Capital, Citigroup, Copthall Mauritius Investment, HDFC Mutual Fund, Bandhan Mutual Funds, Axis Mutual Fund, Reliance Capital Trustee and more.

Ellenbarrie Industrial Gases offers project engineering services, leveraging technical expertise to design, install, and commission tonnage air separation units (ASUs) on a turnkey basis. The company also provides medical gas pipeline solutions, assisting healthcare facilities with installing, operating, and maintaining their systems.

For the financial year ended on March 31, 2025, Ellenbarrie Industrial Gases reported a net profit of Rs 83.29 crore with a revenue of Rs 348.43 crore. The company clocked a net profit of Rs 45.29 crore with a revenue of Rs 290.20 crore for the financial year 2023-24. The company shall command a market capitalization of Rs 5,637.42 crore.

Ellenbarrie Industrial Gases has reserved 50 per cent share for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation reserved for them. Retail investors will have 35 per cent of the net offer allocated towards them.

The allotment of shares is scheduled for finalisation by Friday, June 27, and the company shall be listed both on BSE and NSE by Tuesday, July 1. The issue is managed by Motilal Oswal Investment Advisors, IIFL Capital Services and JM Financial, while KFin Technologies is the registrar for the issue. Here’s what a host of brokerage firms say about the IPO of Ellenbarrie Industrial Gases:
 

SBI Securities
Rating: Subscribe
Ellenbarrie Industrial Gases owns the cylinders and equipment at the customer facilities which provides a strong entry barrier. The take or pay clause in the supply contracts provides steady revenue and derisks it from business cycles of the customers. EIGL has an improving margin profile, in-line with the rising share of higher margin Argon gas and onsite projects, said SBI Securities.

“Debt repayment from the IPO proceeds will lower interest cost. This along with the capacity addition in 2HFY26 is likely to boost profitability in FY26 and FY27. At the upper price band of Rs 400, it is likely to trade at 67.7 times FY25 EPS post issue, which is at a discount to peer Linde India. We recommend investors to ‘subscribe’ to the issue at the cut-off price,” it added.
 

Anand Rathi Research
Rating: Subscribe for long-term
Ellenbarrie Industrial’s profitability is improving, supported by a growing share of high-margin Argon gas and onsite projects, upcoming capacity additions in 2HFY26 are expected to further enhance profitability in FY26 and FY27. Its legacy and long standing customer relationships offering in diversified industries could lead EGIL growth over the long term, said Anand Rathi Research.

“Additionally, with its regional concentration of top 10 customers located in the east and south, it might face operational challenges due to economic, Political disruptions. Therefore we believe since the issue is aggressively priced but with planned debt reduction and capacity addition the company could perform well over the long run, so we give ‘subscribe for long-term’ rating for the issue,” it said.
 

Chola Securities
Rating: Subscribe
Ellenbarrie holds the third-largest distribution infrastructure in India by physical assets. They hold leadership positions in West Bengal, Andhra Pradesh, and Telangana in terms of installed capacity. Its long-term customer relationships and strategic onsite facilities with long-term contracts spanning 15-20 years provide predictable revenue streams, said Chola Securities.

“The Indian industrial gases market is expected to grow at a 7.5 per cent CAGR to Rs 15,000 crore by 2028, supported by Government initiatives like ‘Make in India’ and expanding demand from steel, pharma, and manufacturing sectors. We have issued a ‘subscribe’ rating for Ellenbarrie Industrial Gases Ltd for IPO for listing gains,” it said.
 

SMIFS
Rating: Subscribe
Ellenbarrie’s diversified exposure across industrial, defence, space, railways, and healthcare, supported by a broad base of 1,829 customers with low concentration risk, ensures revenue stability, while its strategic focus on speciality gases, green hydrogen, and ultra-high purity gases positions the company to benefit from rising demand in high-growth sectors like semiconductors, said SMIFS.

“Ellenbarrie’s transition from a regional to a pan-India supplier, backed by proven execution and capacity-led growth, supports a positive revenue and profitability outlook with sustained double-digit growth potential. We recommend subscribing to the issue backed by strong parentage, fast ramp up of capacities and utilisation levels leading to economies of scale and higher margins and rapid growth over the next 3-5 years,” it said.
 

Bajaj Broking
Rating: Neutral
The IPO is reasonably valued, supported by visible growth levers such as capacity addition, margin improvement, and reduced leverage. Key strengths include a diversified customer base across core sectors like healthcare, steel, and manufacturing, alongside a growing production footprint, said Bajaj Broking.

“Investors should be mindful of sector-specific risks like high capital intensity, regulatory challenges, and sensitivity to input costs. Overall, it presents an attractive investment opportunity with a strong operational foundation, scalable growth potential, and improving financial metrics. Execution of its expansion will be crucial to sustaining long-term shareholder value,” it said with a ‘neutral’ rating.
 

Ventura Securities
Rating: Subscribe
Ellenbarrie Industrial plans to utilize the funds raised from its Rs 852.53 crore IPO for strategic growth initiatives including reducing existing debt, enhancing the company’s financial stability, establishing a 220 TPD air separation unit at the Uluberia-II plant in West Bengal, aimed at expanding production capacity and meeting increasing demand, said Ventura Securities with a ‘subscribe rating.