Ellenbarrie Industrial Gases IPO GMP rises to 6%; issue subscribed 9% on Day 2

Time of India

5 hours ago

The initial public offering (IPO) of Ellenbarrie Industrial Gases was subscribed 9% so far on the second day of bidding on Wednesday, up from 8% on Day 1.
As of 10:03 am, the IPO had received bids for 12,95,222 shares, or 9% of the total issue size of 1,51,08,983 shares. The retail investor portion was subscribed 15%, while the non-institutional investor (NII) category saw a 9% subscription. The qualified institutional buyer (QIB) segment was yet to be subscribed.
In the grey market, Ellenbarrie Industrial Gases shares were trading at a premium of Rs 25–26, up from Rs 7–9 on Day 1. This means the GMP has risen to around 6% from 1.75%.
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IPO details
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The public issue includes a fresh equity issuance worth Rs 400 crore along with an offer for sale (OFS) of 1.13 crore shares. Ahead of the launch, the company successfully secured Rs 256 crore from anchor investors.
The price band has been set at Rs 380 to Rs 400 per share, with a minimum application size of 37 shares. The shares are proposed to be listed on both the NSE and BSE.
The IPO proceeds will be utilised to repay debt amounting to Rs 210 crore, establish a 220 TPD air separation unit at the company's Uluberia-II plant at a cost of Rs 104.5 crore, and meet general corporate requirements. Eastern India Gases Ltd (EIGL) also plans to commission three new plants by FY26, aiming to increase its total installed capacity from 3,861 TPD to 4,551 TPD.
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About Ellenbarrie Industrial Gases
Founded over five decades ago, EIGL manufactures and supplies a wide range of industrial gases such as oxygen, nitrogen, argon, and acetylene, along with speciality gases, medical gases, and cryogenic storage systems. It operates nine facilities across East, South, and Central India, servicing industries like steel, pharmaceuticals, defence, healthcare, and railways.
The company reported a 26.7% PAT margin in FY25 with net profit of Rs 83.3 crore, EBITDA margin of 35.8%, and return on equity of 16.9%. At the upper end of the price band, the stock is valued at 62.9x FY25 earnings.
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Should you subscribe to the Ellenbarrie Industrial Gases IPO?
SBI Securities has rated the IPO as Subscribe, citing EIGL's improving margin profile, strong client base, strategic capacity expansion, and attractive valuation compared to listed peers like
Linde India
.
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