Lot Size: 37 shares (Retail investment starts at ₹14,800)
Allocation: 50% QIB (60% anchor, 1/3rd to mutual funds), 15% NII, 35% Retail
Lead Managers: Motilal Oswal, IIFL Capital, JM Financial
Registrar: KFin Technologies
About Ellenbarrie Industrial Gases:
Founded in 1973, based in Kolkata
The company manufactures essential gases such as oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon, and nitrous oxide. They also offers dry ice, synthetic air, fire-fighting gases, medical oxygen, liquefied petroleum gas (LPG), welding mixtures, and specialty gases, serving a wide range of industries.
The company in total operates 9 facilities across East, South and Central India.
Additional infrastructure includes cylinder filling plants and 35,000+ cylinders
Operates medical gas systems and project engineering services. IN project engineering services, it is leveraging technical expertise to design, install, and commission tonnage air separation units (ASUs) on a turnkey basis.
Workforce of over 700 employees
Padam Kumar Agarwala and Varun Agarwal are the company promoters.
Ellenbarrie Industrial Gases allocated a total of 63,93,938 equity shares to 28 anchor investors at ₹400 per share, raising ₹256 crore ahead of its IPO. Among the prominent anchors, HDFC Mutual Fund (9.5%), Axis Mutual Fund (8.8%), Bandhan Mutual Fund (6.7%), Tata Mutual Fund (6.2%), Motilal Oswal Mutual Fund (5.9%), Nippon India Mutual Fund (5.3%), HDFC Life Insurance (4.8%), Eastspring Investments (Prudential) (4.5%), ICICI Lombard General Insurance (4.1%), and Citigroup Global Markets Mauritius (3.9%) received significant allocations. Other notable participants included Copthall Mauritius Investment, Edelweiss Mutual Fund, Union Mutual Fund, Reliance Capital Trustee, Clarus Capital, and Kotak Mahindra Life Insurance, each with allocations ranging from 1% to 3%.
Pre-IPO Placement/ Secondary sales
In Jan 2025, promoter sold shares worth Rs.140 cr at Rs. 427.69 per share to Mukul Agrawal and 2 domestic funds. This was at a price higher than the current IPO price.
In June 25, promoter did another secondary, sale of Rs. 250 cr, at price of Rs. 400 per share, to Motilal Oswal MF,
Salient Points: Ellenbarrie Industrial Gases IPO
Proceeds to be used for debt repayment (₹210 Cr), capacity expansion (₹104.5 Cr), and corporate needs
No new product launches but ₹104.5 Cr to be used for expansion at Uluberia-II. These upcoming capacities will have higher production capacity for argon gas, which has higher margin than nitrogen and oxygen.
87% of revenue from oxygen & nitrogen; 13% from medical/specialty gases.
Revenue from domestic market only; no exports
Revenue CAGR FY22–25: ~23%; PAT CAGR: ~32%
EBITDA margin improved from 16.4% (FY23) to 35.1% (FY25)
Existing capacity nearly full; 220 TPD plant to expand supply.
In the past 2 fiscals, company’s installed capacity has gone up 2x from 600 tons per day (TPD) in FY23 to 1,250 TPD in FY25. Currently it is a tad higher than this figure.
Capacity is being further ramped up 1.5x to 2,100 TPD, by Dec 2025.
Company has seen good uptrend in margins. There can be further scope as larger unlisted peer Inox Air Products (around 2500 cr topline) operates at much higher margins.
industry enjoys high entry barriers due to capital intensive nature, strict environmental regulations and technological issues.
Peer Comparison
Peer
Revenue
OPM%
NPM%
P/E (FY25)
market cap/sales
Ellenbarrie Industrial
312 cr.
35.12
23.99
73.13
18.06
Linde India
2485
30.8
18%
131
23.6
Grey Market Premium
as per SM Rs. 7 (1.7%)
Management Commentary
Strong post-COVID demand in industrial and medical oxygen
Focus on expansion and debt reduction to improve operating leverage & margins.
ASU (air separation) commissioning planned within 12–18 months to address future demand
Opinion
Call: Has some good fundamentals. Looks OK for medium to long term. No surety of listing gains. Iam slightly inclined to Subscribe to Ellenbarrie Industrial Gases IPO. Will decide on day 3 depending on response.
Positives: High margins, strong FY25 recovery, credible anchor investors, capacity expansion, rising share of higher margin Argon gas
Risks: Valuation appears quite stretched (P/E ~68×), no exports.
Conclusion: Looks OK for medium long-term on robust industrial gas growth expectations.
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
