Ellenbarrie IPO: A Deep Dive into the Industrial Gas Leader’s Upcoming Public Offer

Introduction: Ellenbarrie IPO

Ellenbarrie Industrial Gases Limited is gearing up for its IPO, marking a significant milestone in its five-decade-long journey. Known for supplying industrial, medical, and specialty gases across sectors like healthcare, steel, pharmaceuticals, and defense, the company is now opening its doors to public investors. The Ellenbarrie IPO will consist of a ₹400 crore fresh issue and an offer for sale of 1.44 crore shares. As the company looks to repay debt and expand its manufacturing capabilities, this IPO presents both an industrial growth story and an investment opportunity worth evaluating.

In this blog, we break down Ellenbarrie’s business model, financial performance, industry opportunity, and more to help you decide whether this IPO deserves a place on your radar.

Ellenbarrie IPO Details

Particulars	Details
IPO Type	Book Building Issue
Fresh Issue Size	₹400 crore
Offer for Sale (OFS)	1,44,27,620 equity shares
Total Issue Size	₹852.53 Cr
Face Value	₹2 per share
Price Band	₹380 to ₹400 per share
Lot Size	37 Shares
Listing Exchange	BSE & NSE
IPO Opening Date	June 24, 2025
IPO Closing Date	June 26, 2025
Allotment Finalisation Date	Fri, Jun 27, 2025
Lead Managers	Motilal Oswal, IIFL Capital, JM Financial
Registrar	KFin Technologies Limited

Share Allocation

Investor Category	Share Allocation
QIB (Institutional)	Not more than 50% of the net offer
NII (HNI)	Not less than 15% of the net offer
Retail Investors	Not less than 35% of the net offer

Promoter Shareholding

Particulars	Details
Promoters	Padam Kumar Agarwala, Varun Agarwal
Pre-Issue Holding	98.96%
Post-Issue Holding	96.47%

Once the price band and issue dates are announced, this section will be updated accordingly.

IPO Objectives of Ellenbarrie Industrial Gases

The company plans to use the proceeds from the IPO to strengthen its operations, reduce debt, and expand its production capacity. Here’s a breakdown of how the funds will be used:

1. Debt Repayment or Prepayment – ₹176.9 crore
   Ellenbarrie aims to reduce its outstanding borrowings. Lower debt means less interest burden, which can improve profit margins and financial stability.
2. New Air Separation Unit – ₹130 crore
   A major portion of the funds will go towards setting up a new Air Separation Unit at its Uluberia-II plant with a capacity of 220 TPD (Tonnes Per Day). This will help the company meet rising demand and improve production efficiency.
3. General Corporate Purposes
   The rest of the amount will be used for day-to-day business activities such as marketing, administrative expenses, and working capital.

What This Means for Investors
The company’s focus on expansion and reducing debt shows long-term growth intent. The new unit could significantly boost production and revenue, while a lower debt load may improve financial ratios in the coming years.

Business Model of Ellenbarrie Industrial Gases Limited

Ellenbarrie Industrial Gases Limited is in the business of producing and supplying industrial, medical, and specialty gases. These are essential gases like oxygen, nitrogen, hydrogen, helium, and argon that are used across industries such as steel, pharmaceuticals, healthcare, engineering, petrochemicals, and defence.

To understand simply: imagine a hospital needing medical oxygen 24×7 or a steel plant requiring large quantities of nitrogen and oxygen during manufacturing—Ellenbarrie ensures this supply through its gases and infrastructure. In many ways, it is like the “gas utility provider” for heavy industries and critical services.

The company doesn’t just sell gas; it also offers engineering services, setting up onsite plants for clients, and installs medical gas pipelines in hospitals. This makes Ellenbarrie both a product and service-based company, with long-term contracts ensuring recurring income.

Business Breakdown

Ellenbarrie’s revenues primarily come from two key segments:

1. Sale of Gases (Industrial + Medical)

• This is the core business, where the company manufactures and sells gases in different forms:
  • Bulk supply via cryogenic tankers (for large-scale industrial clients).
  • Packaged supply in gas cylinders (for smaller industries or mobile needs).
  • Onsite supply with company-run gas generation plants set up at client sites.

For example, a pharmaceutical company may have an ongoing five-year contract with Ellenbarrie to supply nitrogen via tankers every week.

2. Project and Equipment Services

• The company also earns from:
  • Designing and installing large Air Separation Units (ASUs) for industrial clients.
  • Setting up medical gas pipelines and supplying hospital equipment like ventilators and monitors.

For instance, Ellenbarrie installed complete oxygen systems in government hospitals during COVID-19 and continues to manage them under service contracts.

Additional Business Highlights

• Diversified Client Base: As of FY24, the company had over 1,800 customers, including names like AIIMS, Dr. Reddy’s Labs, Air India Engineering, and Indian Railways.
• Geographical Presence: Eight plants across India, with stronghold in West Bengal, Andhra Pradesh, Telangana, and growing presence in Chhattisgarh.
• Long-Term Contracts: 295 bulk customers with average contract tenure of 5 years, ensuring stable cash flow.
• Repeat Business: ~92% of FY24 revenue came from repeat clients.

Financial Overview

Key Financials (₹ in Crore)

Particulars	FY24	FY23	FY22
Revenue	290.20	223.71	255.90
Profit After Tax	45.29	28.14	67.16
Assets	672.54	551.27	414.06
Net Worth	250.15	203.32	178.59
Reserves & Surplus	403.35	356.51	331.78
Total Borrowing	176.90	101.10	10.71

Key Financial Ratios (As of FY24)

• ROE (Return on Equity): 11.05%
• RoNW (Return on Net Worth): 18.10%
• ROCE (Return on Capital Employed): 12.22%
• Debt/Equity: 0.03 (Extremely low leverage)
• PAT Margin: 15.61%
• EPS (Pre-IPO): ₹3.46

Opportunity in the Business

1. Booming Demand for Industrial & Medical Gases

India’s infrastructure, steel, and healthcare sectors are growing fast. Demand for gases like oxygen, nitrogen, and argon is expected to rise significantly. Ellenbarrie, with a pan-India presence and long-term contracts, is well-positioned to benefit from this trend.

Example: Government focus on building new hospitals and expanding railways and defence manufacturing creates ongoing demand for gases and installations.

2. Recurring & Sticky Customer Base

Most clients are under long-term supply agreements, ensuring predictable cash flows and customer stickiness.

3. Expansion with Fresh IPO Money

The IPO proceeds will help:

• Repay ₹1,769 Cr debt to strengthen the balance sheet.
• Set up a 220 TPD air separation plant, boosting production capacity and future growth potential.

4. Low Debt & Healthy Margins

Debt-to-equity is just 0.03, and PAT margins are 15%+, indicating a financially disciplined business with strong earnings quality.

Risk Factors

1. Highly Capital Intensive

Setting up gas plants and transport logistics requires large investments. Any delay in expansion or plant commissioning could impact revenue growth.

2. Regulatory Dependency

The medical and industrial gas industry is subject to tight safety and compliance regulations. Any changes or violations may lead to penalties or operational halts.

3. Customer Concentration

While the company has a large base, a significant portion of revenue may come from top clients. Loss of any major contract could impact short-term revenue.

4. Market Sensitivity

Prices of gases are sensitive to input costs and demand fluctuations. Any downturn in steel or pharma industries could indirectly affect Ellenbarrie’s revenue.

Valuation & Peers: How Does Ellenbarrie Stack Up?

Ellenbarrie Industrial Gases may operate in a specialized segment with limited direct comparables, but Linde India serves as a solid benchmark in the industrial gases space.

Let’s break down the updated valuation snapshot based on the IPO price band of ₹380 to ₹400:

Company Name	EPS (₹)	P/E Ratio	RoNW (%)
Ellenbarrie Industrial Gases (Post IPO)	5.91	67.69	18.10%
Linde India Ltd	50.90	161.68	12.52%

Key Insights:

• 🧮 Premium Valuation, but Still Lower than Linde: At the upper band (₹400), Ellenbarrie trades at a P/E of 67.69x—rich but still significantly below Linde’s sky-high valuation of 161.68x.
• 🚀 Superior RoNW: Ellenbarrie’s Return on Net Worth of 18.10% comfortably exceeds Linde India’s 12.52%, reflecting higher capital efficiency.
• 📦 Smaller Base = Growth Headroom: Ellenbarrie’s relatively smaller scale opens up more room to grow, especially with upcoming capacity additions and sector tailwinds.

Verdict on Valuation:
While the IPO is priced at a premium, Ellenbarrie’s fundamentals—strong RoNW, low debt, and wide sectoral exposure—may justify the tag. For investors, it’s a calculated risk with solid upside potential if growth continues.

Conclusion: Listing Gain & Long-Term Strategy

Ellenbarrie IPO brings to the table a solid legacy in the industrial and medical gases space, catering to multiple critical sectors like steel, healthcare, defence, and pharmaceuticals. With a pan-India presence and a diversified customer base of over 1,800 clients, the company is well-placed to benefit from growing demand in infrastructure, healthcare, and industrial manufacturing.

Listing Gain Outlook

Even though the GMP (Grey Market Premium) for Ellenbarrie IPO hasn’t started circulating yet, a few signals stand out:

• Solid financials: PAT grew to ₹45.29 crore in FY24 from ₹28.14 crore in FY23.
• RoNW at 18.10%, which is quite attractive.
• Debt-to-equity remains low at 0.03 even after borrowing expansion.

These factors suggest moderate to decent listing day enthusiasm, especially if the IPO is priced reasonably.

Listing Gain Strategy:

• Short-term traders looking for listing pop can consider applying if the final price band shows valuation comfort and subscription demand appears strong during the bidding window.
• Keep an eye on QIB and HNI interest; heavy institutional demand may boost confidence for listing gains.

Long-Term Investment Strategy

For long-term investors, Ellenbarrie stands out due to:

• Its strong presence in mission-critical sectors like medical and industrial gases.
• A consistent client base, including government, defence, and pharma companies.
• Capex-driven expansion, such as the upcoming 220 TPD air separation unit, which could support revenue growth in the coming years.

Long-Term Strategy:

• Buy on dips or post-listing correction if IPO pricing looks aggressive.
• Track capacity utilization and margin trends over FY25–FY26 to assess scalability.
• Use a SIP-style staggered entry approach over 6–12 months to ride long-term demand growth in gas-based infrastructure and healthcare.

Investor Tip:
If you’re a conservative investor, consider waiting till the first two quarters post-listing to evaluate performance before committing significant capital.

Open your Angel One Demat account today to apply for the Ellenbarrie IPO hassle-free!

FAQs: Ellenbarrie IPO

Q1. What is the size of Ellenbarrie Industrial Gases IPO?
The IPO includes a fresh issue of ₹400 crore and an offer for sale of 1.44 crore shares.

Q2. When will Ellenbarrie IPO open for subscription?
The IPO opening and closing dates are yet to be announced.

Q3. On which exchanges will the shares list?
The company plans to list on both the NSE and BSE.

Q4. What does Ellenbarrie Industrial Gases do?
Ellenbarrie manufactures and supplies industrial, medical, and specialty gases. It also provides gas pipeline systems and medical equipment to sectors such as healthcare, defence, and infrastructure.

Q5. How did the company perform financially in FY24?
The company earned ₹290.2 crore in revenue and posted a net profit of ₹45.29 crore.

Q6. What is the company’s debt position?
Ellenbarrie maintains a low debt level with a debt-to-equity ratio of just 0.03.

Q7. Who are some of the company’s major clients?
Major clients include AIIMS, Dr. Reddy’s Laboratories, Laurus Labs, Hindustan Shipyard, and Rashtriya Ispat Nigam.

Q8. Does Ellenbarrie have any listed peers?
Linde India serves as the closest comparable peer, trading at a P/E of 161x.

Q9. What is the GMP (Grey Market Premium) for this IPO?
There is currently no available GMP data for the Ellenbarrie IPO.

Q10. Should investors consider it for short-term or long-term?
For the short term, investors may consider listing gains. For the long term, the company offers potential exposure to industrial growth, healthcare expansion, and infrastructure demand.

Related Articles

Israel-Iran Conflict Impact: Market Shock & Stock Winners