Kolkata-based Ellenbarrie Industrial Gases has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The IPO will include a fresh issue of equity shares worth Rs 400 crore, along with an offer for sale (OFS) of up to 1.44 crore equity shares by the company’s promoters, according to the Draft Red Herring Prospectus (DRHP).
The OFS involves promoters Padam Kumar Agarwala and Varun Agarwal selling 72 lakh equity shares each. Additionally, the company may consider raising up to Rs 80 crore through a pre-IPO placement. Should this pre-IPO placement take place, the size of the fresh issue will be adjusted accordingly.
According to the draft papers, Rs 176.8 crore from the fresh issue will be allocated for debt repayment, while Rs 130 crore is earmarked for setting up an air separation unit at the Uluberia-II plant. The remaining funds will be used for general corporate purposes.
With a 50-year legacy, Ellenbarrie is one of India’s oldest industrial gas companies, producing and supplying various gases, including oxygen, carbon dioxide, nitrogen, helium, hydrogen, nitrous oxide, synthetic air, firefighting gases, and medical oxygen. The company serves a broad range of industries such as steel, pharmaceuticals, healthcare, engineering, infrastructure, aviation, petrochemicals, food and beverages, energy, electronics, manufacturing, and defense.
As of March 2024, Ellenbarrie operates four facilities in West Bengal, two in Andhra Pradesh, one in Telangana, and one in Chhattisgarh. The company’s client base includes prominent names like Vizag Steel, Jupiter Wagon Ltd, AIIMS, Air India Engineering Services Ltd, Hindustan Shipyard Ltd, the Indian Armed Forces, and the West Bengal Power Development Corporation Ltd.
Financially, Ellenbarrie reported a 31.38% increase in revenue, reaching Rs 269.4 crore in fiscal 2024, compared to Rs 205.1 crore in the previous year. Profits surged by 61% to Rs 45.2 crore in fiscal 2024, up from Rs 28.1 crore in the prior year.
India’s industrial gases market, valued at USD 1.22 billion in 2023, is projected to grow at a 7.5% CAGR, reaching USD 1.75 billion by 2028, as per a report by Frost & Sullivan. The market growth is driven by government initiatives like ‘Make in India’ and increased demand from sectors such as steel, pharmaceuticals, and defense. Motilal Oswal Investment Advisors, IIFL Securities, and JM Financial are the lead managers for the IPO. The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
