Ellenbarrie Industrial Gases Limited, one of India’s oldest industrial and medical gas manufacturers, made a striking debut on Indian stock exchanges on July 1, 2025. The company’s shares listed at ₹492 apiece on the BSE, reflecting a 23% premium over its issue price of ₹400. On the NSE, shares opened at ₹486, offering a 21.5% premium. This stellar debut surpassed grey market expectations, where the stock was trading with a grey market premium (GMP) of around 14.25% ahead of listing. Investor sentiment appears to have been driven by the company’s strong financial metrics, legacy reputation in the industrial gas sector, and expansion-focused IPO objectives. The Kolkata-based firm had launched its ₹852-crore public issue with a price band of ₹380–400 per share, drawing considerable interest across investor categories.
Highlights
Shares listed at ₹492 on BSE, marking a 23% premium to the ₹400 IPO price.
NSE listing at ₹486 represented a 21.5% gain over issue price.
Listing performance exceeded grey market premium of 14.25%.
Investor enthusiasm backed by strong margins and long-standing sector presence.
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Oversubscribed IPO Reflects Broad-Based Investor Confidence
Ellenbarrie’s ₹852.53 crore IPO was met with overwhelming demand, being subscribed more than 22 times during the three-day bidding window that ended in June. According to exchange data, the public issue attracted bids for over 33.5 crore shares against the offer of 1.51 crore shares. Non-institutional investor participation stood out, with the segment being subscribed over 15 times. Retail individual investors (RIIs) also showed enthusiasm, pushing their portion past 2 times subscription. Notably, the Qualified Institutional Buyer (QIB) category drew in heavy interest, thanks to early anchor allocations to top domestic mutual funds. Analysts attribute this strong demand to the company’s profitability profile, operational footprint in high-growth sectors, and optimism around India’s industrial gas demand amid a manufacturing push.
Highlights
IPO subscribed over 22 times; bids crossed 33.5 crore shares.
Non-institutional investor segment subscribed more than 15 times.
RII quota oversubscribed 2x, indicating strong retail demand.
Robust anchor investor participation from major mutual funds.
Anchor Book Participation Adds Institutional Credibility
Ahead of its public offering, Ellenbarrie Industrial Gases raised ₹255.8 crore via its anchor book on June 23, attracting high-profile domestic institutional investors. Anchor participants included HDFC Mutual Fund, Axis Mutual Fund, Reliance Capital Trustee, Bandhan Mutual Fund, Tata Mutual Fund, Motilal Oswal MF, Edelweiss MF, and Union Mutual Fund. Together, these funds acquired 36.92 lakh shares, indicating institutional confidence in the company’s long-term value. The inclusion of multiple diversified fund houses reflects a broad-based strategic bet on the sector’s future, especially in light of India’s increased infrastructure activity and growing demand for medical and industrial gases across segments such as steel, pharmaceuticals, and healthcare. The high-quality anchor book is seen as a key driver behind the listing-day optimism.
Highlights
₹255.8 crore raised from anchor investors prior to IPO launch.
Institutional buyers included HDFC, Axis, Motilal Oswal, Tata, and Bandhan MFs.
36.92 lakh shares allocated in anchor round, boosting credibility.
Institutional interest reflects long-term conviction in industrial gas sector growth.
Premium Valuation Backed by Strong Margins and Diverse Gas Portfolio
While the stock listed at nearly 80 times FY25 projected earnings—a valuation multiple that would raise eyebrows in most sectors—analysts argue that Ellenbarrie’s financial metrics justify the optimism. The company reported an EBITDA margin of 36% and a net profit margin of 27%, among the highest in the industrial gas segment in India. Its product suite spans industrial, medical, and specialty gases including oxygen, nitrogen, acetylene, argon, helium, and carbon dioxide, among others. These are critical inputs across a wide industrial spectrum including steel, infrastructure, healthcare, defence, and aerospace. The firm’s wide-ranging application base helps mitigate cyclical risks, although some regional and sectoral concentration remains. Nevertheless, analysts believe that the high margin profile and multi-industry dependence lend the company resilience in a volatile demand environment.
Highlights
Listed at nearly 80x FY25 projected earnings, but backed by strong margins.
EBITDA and net profit margins stand at 36% and 27% respectively.
Gas offerings include oxygen, nitrogen, argon, acetylene, and helium.
Sectoral demand diversification supports profitability and demand durability.
Strategic Use of IPO Proceeds to Accelerate Expansion
The IPO’s fresh issue component of ₹400 crore is slated to be deployed across strategic initiatives aimed at accelerating growth and strengthening operations. Key objectives include the repayment of existing debt, enhancing manufacturing capabilities through a new air separation unit at the Uluberia-II facility, and funding general corporate needs. The company’s current manufacturing footprint spans nine facilities across eastern and southern India, which have historically catered to both private and public sector clients. The proposed capacity expansion at Uluberia is expected to bolster supply capabilities in the eastern region—an area witnessing significant infrastructure and healthcare investment. Promoter proceeds from the ₹452.53 crore offer-for-sale (OFS) will go to Padam Kumar Agarwala and Varun Agarwal, reaffirming a calibrated exit strategy without full dilution of control.
Highlights
₹400 crore from fresh issue to be used for debt reduction and plant expansion.
New air separation unit planned at Uluberia-II facility.
Nine existing facilities provide regional manufacturing advantage.
₹452.53 crore OFS proceeds go to promoters under partial stake sale plan.
Industry Legacy and Sectoral Relevance Support Long-Term Prospects
With over five decades in the industrial gases domain, Ellenbarrie Industrial Gases has positioned itself as a reliable supplier for mission-critical applications across defence, pharmaceuticals, steel, and infrastructure. The company’s legacy advantage, combined with a capital-intensive business model, has allowed it to build longstanding relationships with major industrial consumers. Its diversified gas offerings are essential for processes ranging from welding and metal fabrication to medical oxygen delivery in hospitals. However, sectoral analysts caution that Ellenbarrie’s future performance will hinge on how effectively it can navigate cyclical demand swings, regulatory cost pressures, and competition from global industrial gas majors. Still, the company’s sustained margins, growing end-user demand, and planned capacity additions make it a viable long-term contender in India’s high-growth industrial ecosystem.
Highlights
50+ year legacy gives Ellenbarrie strategic credibility in Indian industrial gas market.
Supplies critical sectors such as defence, pharma, aviation, and infrastructure.
Business model supported by capital intensity and established industrial tie-ups.
Analysts flag demand sensitivity and competitive pressures as potential risks.
