Ellenbarrie Industrial Gases Files DRHP with SEBI: IPO Set to Raise ₹400 Cr – Key Update for Investors

Ellenbarrie Industrial Gases, based in Kolkata, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO). The company aims to raise funds through this IPO, which will consist of a fresh issue worth up to Rs 400 crore and an offer for sale (OFS) of 1.44 crore equity shares by its promoters.

The company may also raise up to Rs 80 crore through a pre-IPO placement. If this happens, the size of the fresh issue will be reduced. Promoters Padam Kumar Agarwala and Varun Agarwal plan to sell up to 72 lakh equity shares through the OFS.

The shares will be listed on both the BSE and NSE. The IPO will follow a book-building process, with up to 50% allocated to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 35% to retail investors.

Ellenbarrie plans to use Rs 176.8 crore from the IPO proceeds to repay some of its debts and around Rs 130 crore to build a new air separation unit with a capacity of 220 tonnes per day (TPD) at its Uluberia-II plant. The remaining funds will be used for general corporate purposes.

In FY24, Ellenbarrie’s revenue grew by 31.38%, reaching Rs 269.4 crore compared to Rs 205 crore in FY23. This was mainly due to increased sales of its manufactured products and income from construction contracts. The company’s profit also saw a significant rise, up by 61% to Rs 45.2 crore from Rs 28.1 crore in the previous year.

Ellenbarrie Industrial Gases is the largest 100% Indian-owned industrial gas company in terms of manufacturing capacity, revenue, and profitability as of March 2024. With a history spanning 50 years, it is one of India’s oldest industrial gas companies. The company produces and supplies various gases such as oxygen, carbon dioxide, nitrogen, helium, hydrogen, and acetylene, along with other specialised gases used in industries like steel, pharmaceuticals, chemicals, healthcare, and manufacturing.

Motilal Oswal Investment Advisors Limited, IIFL Securities Limited, and JM Financial Limited are acting as the book-running lead managers for this issue, with KFin Technologies Limited serving as the registrar.