Ellenbarrie Industrial Gases IPO subscribed 2% so far on Day 1. Check what GMP indicates
Ellenbarrie Industrial Gases' IPO opened today, witnessing modest initial subscription rates of 2% overall, with retail investors at 2% and NIIs at 1%. The IPO includes a fresh issue and OFS, aiming to raise funds for debt repayment and expansion. SBI Securities recommends subscribing, highlighting the company's strong financials and strategic growth plans.
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The initial public offering (IPO) of Ellenbarrie Industrial Gases, one of India's oldest industrial gas manufacturers, opened for subscription earlier today and has been subscribed by 2% so far on the first day of the bidding process.As of 10:45 am, the issue had attracted only a 2% subscription from retail investors and 1% from non-institutional investors (NIIs). Meanwhile, the qualified institutional buyers had not made any bids.As for the grey market premium (GMP), the shares of Ellenbarrie Industrial Gases were trading higher by 1.75% or Rs 7-9 in the unlisted market.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.Also read: Eclectic mix of sectoral options drives IPO momentum: Sonia Dasgupta, JM Financial Founded over five decades ago, EIGL manufactures and supplies a wide range of industrial gases such as oxygen, nitrogen, argon, and acetylene, along with specialty 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.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.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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