Ellenbarrie Industrial Gases IPO: Key Insights of Upcoming IPO

Ellenbarrie Industrial Gases Private Limited submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 400 crore of equity shares and an offer for sale of up to 1.44 crore equity shares. The total aggregate size in rupees and the number of equity shares are not disclosed by the company. The face value mentioned by the company is Rs 2 per each. This new IPO issue is being made through the book-building process with a reservation of less than 75% of the new offer reserved for Qualified Institutional Investors, not more than 15% reserved for NII and not more than 10% reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the company will announce the price band soon.

About Ellenbarrie Industrial Gases Limited

Ellenbarrie Industrial Gases Limited was incorporated in May 2010 and is the largest 100% Indian-owned industrial gases company, in terms of installed manufacturing capacity, revenue, and profitability as of March 31, 2024. The company has over 50 years of legacy, manufacturing and supplying a wide range of gases to many industries, such as steel, healthcare, pharmaceuticals, and defence, including oxygen, carbon dioxide, nitrogen, helium, and many more. They are the market leaders in West Bengal, Andhra Pradesh, and Telangana. Ellenbarrie offers engineering services for ASUs and medical gas pipeline systems. Their pipeline network includes cryogenic tankers and cylinders. At present, the company has eight facilities in India with new projects, but it keeps on growing well. Balanced with a strong management team, Ellenbarrie remains an important supplier of industrial and medical gases, having high-class supplies and good customer relations.

Ellenbarrie Industrial Gases Limited IPO Objectives

The fundings from the Fresh Issue are proposed to be utilized for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company, setting up of an air separation unit at their Uluberia-II plant with a capacity of 220 TPD and general corporate purposes.

Financials of the Company

For the period ending March 31, 2024, the company showed strong improvements across key financial metrics. Assets grew by 22%, rising from Rs 551.27 crore to Rs 672.54 crore. Revenue increased by 31.3%, from Rs 205.11 crore to Rs 269.48 crore. Profit after tax saw a significant jump of 61%, climbing from Rs 28.14 crore to Rs 45.29 crore. However, total borrowing also rose by 75%, from Rs 101.10 crore to Rs 176.90 crore. Overall, the company experienced solid growth in revenue and profit despite an increase in borrowing.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by Motilal Oswal Investment Advisors Limited, IIFL Securities Limited and JM Financial Limited. The company has appointed KFin Technologies Limited as the registrar for this public issue. The promoter(s) of the company are Padam Kumar Agarwala and Varun Agarwal

(All the details mentioned above are as per DRHP filed by the company to the SEBI).