Ellenbarrie Industrial Gases, one of India’s oldest industrial gas companies, is gearing up to raise funds through an Initial Public Offering (IPO). The company has already filed the necessary papers with SEBI, the market regulator. This IPO will include fresh equity shares worth ₹400 crore, along with 1.44 crore shares being sold by the company’s promoters through an Offer for Sale (OFS). Promoters Padam Kumar Agarwal and Varun Agarwal will be offering 72.13 lakh shares through the OFS.
Pre-IPO Fundraising: ₹80 Crore on the Table
Before the formal launch of the IPO, Ellenbarrie Industrial Gases is considering raising up to ₹80 crore in a pre-IPO placement. If this pre-IPO funding is completed, it will reduce the size of the fresh issue during the IPO. The company is receiving assistance from Motilal Oswal Investment Advisors, IIFL Securities, and JM Financial, who are acting as the lead managers for the IPO process.
How Ellenbarrie Plans to Use IPO Proceeds
The funds raised from the IPO will be utilized for several purposes. ₹177 crore will go towards repaying debt, while ₹130 crore is allocated for the development of an air separation unit with a capacity of 220 TPD at its Uluberia-II plant. The remaining funds will be used for general corporate needs, and after the IPO, the company is expected to be debt-free.
A Glimpse into Ellenbarrie’s Business and Financial Growth
Ellenbarrie Industrial Gases is a major player in the industrial gases sector, being the largest Indian-owned company by installed capacity as of FY24. It has a strong presence in East and South India, and its business includes producing liquid oxygen, which is critical for various industries.
In terms of financial performance, Ellenbarrie saw impressive growth in FY24, with profits increasing by 61% to ₹45.3 crore. However, in FY23, the company’s profit dropped by 58%, amounting to ₹28.1 crore, compared to FY22. On the revenue front, Ellenbarrie achieved a 31.4% growth in FY24, reaching ₹269.5 crore, despite a decline of 16.1% in FY23.
Who Are Ellenbarrie’s Key Customers?
Ellenbarrie Industrial Gases boasts a diversified customer base, catering to 1,836 clients in FY24. Some of its major customers include industry giants like Jairaj Ispat, Rashtriya Ispat Nigam, Dr Reddy’s Laboratories, Laurus Labs, All India Institute of Medical Science, and PSU oil companies. This wide customer base underscores the company’s strong market presence and reliability in the industrial gases sector.
From Calcutta Stock Exchange to New Beginnings
Ellenbarrie was earlier listed on the Calcutta Stock Exchange, but it was delisted on 2 July 2018. The company had also been using BSE’s trading platform under the permitted category since 2008, though it faced suspension from 8 March 2017. Now, with the upcoming IPO, the company is setting its sights on a fresh chapter, aimed at expanding its operations and becoming debt-free.
As Ellenbarrie prepares for its IPO, it offers an exciting opportunity for investors looking to tap into the growing industrial gases sector.
