Ellenbarrie Industrial Gases IPO opens today: GMP up 2%; should you apply?

Business Standard

7 hours ago

Ellenbarrie Industrial Gases IPO opens for public subscription: The initial public offering (IPO) of essential gases provider Ellenbarrie Industrial Gases is set to open for public subscription today, Tuesday, June 2025.
At the upper end, the company aims to raise ₹852.53 crore through the offering, which comprises a fresh issue of 10 million equity shares and an offer for sale (OFS) by promoters Padam Kumar Agarwala and Varun Agarwal, offloading up to 11.3 million equity shares. Notably, Ellenbarrie Industrial Gases has already raised ₹255.76 crore from anchor investors in the bidding that concluded on June 23.
Meanwhile, the brokerages remain optimistic about the public offering, citing a positive long-term outlook. Before delving into the brokerage reports, let's have a look at the key details of the Ellenbarrie Industrial Gases IPO:
Ellenbarrie Industrial Gases IPO price band, lot size
Ellenbarrie Industrial Gases has set a price band of ₹380-400 per share for the IPO. The lot size is 37 shares, allowing investors to bid for a minimum of one lot (37 shares) at ₹14,800.
A retail investor can, however, bid for a maximum of 13 lots or 481 shares of Ellenbarrie Industrial Gases IPO with an investment of ₹1,92,400.
Ellenbarrie Industrial Gases IPO grey market premium (GMP)
The unlisted shares of Ellenbarrie Industrial Gases remained muted in the grey market ahead of the opening of their public issue. Sources tracking unofficial market activity revealed that Ellenbarrie Industrial Gases shares were trading at ₹407 apiece, reflecting a grey market premium (GMP) of ₹7 or 1.75 per cent over the upper price band of ₹400.
Ellenbarrie Industrial Gases IPO timelines
Ellenbarrie Industrial Gases IPO will remain open for subscription until Thursday, June 26, 2025. Following that, the basis of allotment of Ellenbarrie Industrial Gases IPO shares is expected to be finalised on Friday, June 28, 2025, and shares will be credited to successful allottees' demat accounts on Monday, June 30, 2025.
The tentative listing date for Ellenbarrie Industrial Gases shares on the BSE and NSE is Monday, July 1, 2025.
Ellenbarrie Industrial Gases IPO registrar, lead manager
Kfin Technologies has been appointed as the registrar for the Ellenbarrie Industrial Gases IPO, while Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the book-running lead managers for the issue.
Ellenbarrie Industrial Gases IPO objectives
The company will not receive any proceeds from the OFS, as those will go to the selling promoters. 'The Promoter Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale after deducting their proportion of Offer expenses and relevant taxes thereon,' Ellenbarrie Industrial Gases said in its Red Herring Prospectus (RHP).
However, Ellenbarrie Industrial Gases plans to use the proceeds from the fresh issue for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company, as well as for setting up an air separation unit at the Uluberia-II plant with a capacity of 220 TPD. The company will further use the IPO proceeds for general corporate purposes.
Should you apply for the Ellenbarrie Industrial Gases IPO?
SBI Securities - Subscribe
Analysts at SBI Securities have recommended that investors subscribe to the Ellenbarrie Industrial Gases IPO, citing that the company has a strong presence as an industrial gas supplier in East and South India, catering to the emerging manufacturing hubs in these regions.
EIGL, analysts said, 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 costs. "This, along with the capacity addition in 2HFY26, is likely to boost profitability in FY26 and FY27."
"At the upper price band of ₹400, the stock is likely to trade at 67.7x FY25 EPS post-issue, which is at a discount to peer Linde India. We recommend investors subscribe to the issue at the cut-off price," said the analysts at SBI Securities.
Bajaj Broking - Subscribe for medium- to long-term
Analysts at Bajaj Broking have recommended that investors bid for the Ellenbarrie Industrial Gases IPO with a medium- to long-term investment horizon.
The public offering, analysts said, is reasonably valued, supported by visible growth levers such as capacity addition, margin improvement, and reduced leverage.
Key strengths, they said, include a diversified customer base across core sectors like healthcare, steel, and manufacturing, alongside a growing production footprint. However, they cautioned that investors should be mindful of sector-specific risks like high capital intensity, regulatory challenges, and sensitivity to input costs.
"Overall, EIGL presents an attractive investment opportunity with a strong operational foundation, scalable growth potential, and improving financial metrics. Execution of its expansion strategy will be crucial to sustaining long-term shareholder value," wrote the analysts in a research note.
About Ellenbarrie Industrial Gases
Established in 1973, Ellenbarrie Industrial Gases Limited (EIGL) is an Indian manufacturer and supplier of industrial, medical, and specialty gases. Its product range includes oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon, nitrous oxide, synthetic air, fire-fighting gases, dry ice, LPG, welding mixtures, and medical-grade gases.
Ellenbarrie Industrial Gases provides project engineering services, including turnkey design, installation, and commissioning of tonnage air separation units (ASUs). The company also supports healthcare facilities with medical gas pipeline systems and offers medical equipment such as ventilators, anesthesia workstations, sterilizers, monitors, and spirometers.