Ellenbarrie Industrial Gases IPO: Subdued Day 1, But GMP Signals Investors Are Holding Their Breath

Ellenbarrie Industrial Gases Limited (EIGL), India's oldest industrial gas manufacturer, floated its Initial Public Offering (IPO) on June 24, 2025, in a price band of ₹380-400 per share. On the opening day, the IPO registered a meager subscription of 2% overall, 2% by retail investors, 1% by non-institutional investors (NIIs), and nil bids as yet by qualified institutional buyers (QIBs).

 

Key Highlights:

 

IPO Size and Structure: The IPO will raise ₹852.53 crore, a fresh issue of ₹400 crore and an Offer for Sale (OFS) of approximately 1.13 crore shares by promoters Padam Kumar Agarwala and Varun Agarwal. The net proceeds from the fresh issue will be utilized towards repayment of debt (₹210 crore), setting up of 220 TPD air separation unit at the Uluberia-II unit (₹104.5 crore), and general corporate purposes.

 

Anchor Investors: Prior to the public subscription, Ellenbarrie secured ₹255.76 crore from anchor investors like Nippon India Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, Tata Mutual Fund, etc., which were subscribed at the higher price band of ₹400.

 

Grey Market Premium (GMP): The share is quoting at a grey market premium of ₹7-9, which is approximately 1.75% above the higher price band, reflecting optimistic investor sentiments even when Day 1 subscription is limited.

 

Subscription Details: Retail investors subscribed for minimum lot size of 37 shares with maximum permissible bid of 13 lots (481 shares). IPO will close on June 26 with allotment on June 27 and listing on July 1 on NSE and BSE. Brokerage Views: SBI Securities and other broking houses recommend subscribing to the IPO, led by the strong financials of Ellenbarrie, enhanced margin profile due to higher-margin specialty gases, and expansion plans. The stock is undervalued at the higher band compared to its peers like Linde India and is for long-term investors.

 

Company Profile: Established in 1973, Ellenbarrie Industrial Gases supplies industrial, medical, and specialty gases to diversified industries such as steel, pharma, healthcare, and manufacturing with a dominant presence in East and South India. The company achieved a net profit of ₹83.29 crore on revenues of ₹348.43 crore in FY25.

 

Overall, while first-time subscription is weak, the reassuring GMP and strong anchor investor backing reflect optimism in the growth tale of Ellenbarrie and its financial condition. Industrial gas sector exposure-hungry investors can consider the IPO for long-term gains.

 

Source: Economic Times, Business Standard, The Hindu BusinessLine, Business Today, HDFC Sky