| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 380 to ₹ 400 | 37 | 24th Jun, 2025 – 26th Jun, 2025 | ₹850 Cr |
Ellenbarrie Industrial Gases Limited IPO
Ellenbarrie Industrial Gases Ltd. (EIG), one of the oldest operating industrial gases companies in India, manufactures and supplies industrial gases including oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon, and nitrous oxide, as well as dry ice, synthetic air, fire-fighting gases, medical oxygen, liquid petroleum gas, welding mixtures, and specialty gases catering to a diverse set of end-use industries. EIG is a key player in the industrial gases market in East and South India, holding a leading position in West Bengal, Andhra Pradesh, and Telangana in terms of installed manufacturing capacity. The company provides project engineering services, leveraging its extensive technical expertise to design, engineer, supply, install, and commission tonnage air separation units (ASUs) and related projects on a turnkey basis for customers across various sectors. The company also offers turnkey solutions involving medical gas pipeline systems, where it assists healthcare facilities in designing, installing, commissioning, operating, and maintaining these systems. In addition, it supplies essential medical equipment to healthcare facilities, including anaesthesia workstations, spirometers, ventilators, sterilizers, bedside monitors, and lung diffusion testing machines. The company operates across multiple modalities of supply, namely onsite, bulk, and packaged, whereby it distributes its products through pipelines connected to the customers, cryogenic tankers, and cylinders. It has one of the most extensive distribution networks in the country, ranking third in terms of transport tankers, cylinders, and customer installations. EIG’s portfolio of industrial and medical gases plays a critical role in serving public and private clients across various industries, including steel, pharmaceuticals and chemicals, healthcare, engineering and infrastructure, railways, aviation, aerospace, petrochemicals, and defense. The company operates nine facilities located across East, South, and Central India, with five in West Bengal, two in Andhra Pradesh, one in Telangana, and one in Chhattisgarh.
Objective of the Ellenbarrie Industrial Gases Limited IPO
The company proposes to utilize the net proceeds from the fresh issue towards funding the following objects.
- Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company.
- Setting up of an air separation unit at the Uluberia-II plant with a capacity of 220 TPD; and
- General corporate purposes.
Rationale To Ellenbarrie Industrial Gases Limited IPO
Comprehensive product portfolio catering to a diverse customer base minimizes concentration risks
EIG has built strong relationships with several Indian customers across industries over its fifty-year operational history. The company sold its products to 1,829 customers, one of the highest customer counts among gas companies in India, demonstrating a highly diversified customer base and limited concentration risk. By manufacturing a wide variety of industrial gases, EIG serves various sectors, including shipbuilding, glass and steel manufacturing, pharmaceuticals, welding, and fabrication, where the consistent supply of gases is critical to operations. The company supplies various gases, including nitrogen, to major oil and gas companies across multiple sites, as nitrogen is used for increasing well pressure during oil exploration and for purging hydrocarbons in pipelines and tanks during refining. The company also produces ultra-high-purity nitrogen gas for the electronics industry, requiring special technical acumen, and ultra-high-purity oxygen used in laboratories, solar cell manufacturing, and semiconductor applications. EIG actively engages with customers to expand the range of applications for its gases, thereby enhancing customer efficiency and increasing its share of customer spending. It also supplies to sectors such as defense and aerospace, including Indian Air Force bases across East, South, and West India, Eastern Naval Command bases, and various government-owned laboratories. As a part of its project engineering operations, EIG utilizes its extensive technical expertise to design, engineer, supply, install, and commission tonnage ASUs and related infrastructure on a turnkey basis for clients across several sectors.
Strategic locations and a robust distribution network in East and South India enhance supply chain efficiency
EIG has built a strong manufacturing and distribution presence across East and South India, operating nine facilities in West Bengal, Andhra Pradesh, Telangana, and Chhattisgarh. These include three bulk manufacturing ASU plants along with cylinder filling stations, two standalone cylinder filling stations, and four onsite plants at customer premises, contributing to its leadership in installed capacity in West Bengal, Andhra Pradesh, and Telangana. With a total oxygen production capacity of 1,250 TPD and the distinction of commissioning Eastern India’s first hydrogen electrolyser, the company offers multiple supply modes – onsite, bulk, and packaged – backed by one of the largest fleets of tankers and over 39,560 cylinders. Its facilities in East and South India are strategically located near key pharmaceutical, steel, automotive, railway wagons and locomotive companies, enabling it to service key customers promptly and efficiently. The company has built a robust distribution network supported by its production facilities with the third highest number of transport tankers, cylinders and customer installations in India. To further scale operations, the company has initiated an expansion at its Uluberia facility in West Bengal, with a second plant, and plans two additional projects – one in North India and another in West Bengal – to strengthen its pan-India footprint. It also recently expanded capacity by 170 TPD at a major steel customer’s Kharagpur site in January 2025. These expansion plans aim to address rising demand across various sectors and enhance supply chain efficiency nationwide.
Valuation of Ellenbarrie Industrial Gases Limited IPO
Ellenbarrie Industrial Gases Ltd. manufactures and supplies industrial gases catering to diverse end-use industries. The company offers services, including project engineering services and also turnkey solutions involving medical gas pipeline systems. In addition, it supplies medical products and equipment to healthcare facilities. The industrial gases market in India is projected to reach USD 1.75 billion by 2028, growing at a CAGR of 7.5%. The industry is directly and significantly influenced by overall economic growth. It is characterized by high customer retention, particularly among large clients, as gases are often supplied directly through pipelines under long-term contracts, typically spanning 15 to 20 years. Given the critical role of industrial gases in manufacturing processes, along with the risks and costs associated with supply disruptions, customers are extremely selective when choosing new suppliers. EIG has effectively addressed these challenges through its long-standing operating history and strong customer relationships, which contribute to stable and recurring revenue. The company benefits from long-term partnerships with three key onsite customers and has established a highly efficient distribution network, supported by its strong manufacturing presence in East and South India. It offers flexible supply options – onsite, bulk, and packaged – based on customer requirements, providing a significant competitive advantage. Its comprehensive product portfolio, catering to diverse industries such as steel, pharmaceuticals and chemicals, healthcare, engineering and infrastructure, railways, aviation, aerospace, petrochemicals, and defense, enhances customer efficiency and minimizes concentration risks. Financially, EIG has delivered a revenue CAGR of 23.4% between FY23 and FY25, while expanding its EBITDA margin from 16.4% to 35.1%, reflecting operational leverage. The company is well-positioned to capitalize on sectoral growth while maintaining profitability and scale. The issue is valued at a P/E ratio of 62.9x at the upper price band based on FY25 earnings, which is relatively cheaper compared to its peers. Considering the above compelling factors, we recommend a “SUBSCRIBE” rating for this issue.
What is the Ellenbarrie Industrial Gases Limited IPO?
The initial public offer (IPO) of Ellenbarrie Industrial Gases Limited offers an early investment opportunity in Ellenbarrie Industrial Gases Limited. A stock market investor can buy Ellenbarrie Industrial Gases IPO shares by applying in IPO before Ellenbarrie Industrial Gases Limited shares get listed at the stock exchanges. An investor could invest in Ellenbarrie Industrial Gases IPO for short term listing gain or a long term.
How to apply for the Ellenbarrie Industrial Gases Limited IPO through StoxBox?
To apply for the Ellenbarrie Industrial Gases Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Ellenbarrie Industrial Gases Limited IPO open?
Ellenbarrie Industrial Gases Limited IPO is opening on 24th Jun 2025. Apply Now
What is the lot size of the Ellenbarrie Industrial Gases Limited IPO?
The Lot Size of Ellenbarrie Industrial Gases Limited IPO is 37 equity shares. Login to your account now.
When is the Ellenbarrie Industrial Gases Limited allotment date?
The allotment Date for Ellenbarrie Industrial Gases Limited IPO is 27th Jun 2025. Login to your account now.
When is the Ellenbarrie Industrial Gases Limited IPO listing date?
The listing Date for Ellenbarrie Industrial Gases Limited IPO is 1st July 2025. Login to your account now
What is the minimum investment required for the Ellenbarrie Industrial Gases Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,800. Login to your account now
What is the maximum investment allowed for the Ellenbarrie Industrial Gases Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 1,92,400. Login to your account now
What are the risks associated with investing in the Ellenbarrie Industrial Gases Limited IPO?
- The company supplies products to certain government entities and public sector undertakings through a competitive bidding process where the contracts are awarded on a tender basis. If the company fails to secure these contracts in the future, then it may affect the business, results of operations, cash flows and financial condition of the company. Any change in qualification criteria, unexpected delays, or uncertainties in the tendering process may harm the business. Furthermore, there is a risk of encountering delays in receiving payments from such entities, which could impact the company’s cash flows.
- The company is subject to strict quality requirements, regular inspections and audits, and sales of its products are dependent on its quality controls and standards. Any failure to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.
- The business is dependent on its facilities. Four of its facilities are located at the sites of its customers, and any deterioration in their relationship with these customers could adversely affect the business, results of operations, cash flows, and financial condition.
When will the Ellenbarrie Industrial Gases Limited IPO shares be credited to my Demat account?
The Ellenbarrie Industrial Gases Limited . IPO be credited to the account on allotment date which is 30th Jun 2025. Login to your account now
Where can I find the Ellenbarrie Industrial Gases Limited IPO prospectus?
The prospectus of Ellenbarrie Industrial Gases Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
