Ellenbarrie Industrial Gases IPO: Facts from the DRHP on a Specialty Gas Play in an Expanding Market

Mumbai | June 20 – The ₹8,525 million Ellenbarrie Industrial Gases IPO is set to open for subscription from June 24 to June 26, attracting attention as the company seeks to scale its presence in India’s expanding industrial and medical gases market. While PL Capital is not actively covering the company, the following is a fact-based snapshot derived from publicly available documents, including the company’s Draft Red Herring Prospectus (DRHP) and analyst presentation.

IPO Details at a Glance

• Issue Size: ₹8,525 million
• Fresh Issue: ₹4,000 million
• Offer for Sale: ₹4,525 million
• Price Band: ₹380–₹400 per share
• Objective: Setting up a new air separation unit, repaying borrowings, and general corporate purposes

Business Overview

Ellenbarrie Industrial Gases operates primarily in the production and distribution of oxygen and nitrogen, which together accounted for 87% of FY25 revenue, as per management disclosures. The company serves a broad industrial customer base across steel, healthcare, chemicals, and infrastructure sectors.

FY25 Financial Snapshot (as per management)

Key Management Highlights from Ellenbarrie Industrial Gases IPO Meet

• India’s industrial gases market is set to grow at a 7.5% CAGR till FY28, compared to 5.5% globally
• Global players like Linde, Inox Air Products, and Air Liquide have invested significantly in India and plan further expansion
• The company primarily caters to Steel, Pharmaceuticals, Chemicals, Healthcare, Engineering, and Infrastructure sectors
• Estimated market share in FY25: 2.85%
• Operational capacity expanded to 3,861 TPD in FY25, up from 591 TPD in FY23
• Customer breakup:
  • • Bulk orders – 328
    • Package orders – 1,498
• Onsite – 4

Growth Strategy & Expansion Plan

According to the IPO documentation, Ellenbarrie plans to:

• Expand beyond commodity gases, entering niche segments such as green hydrogen, argon, and ultra-high purity gases
• Target semiconductor and electronics as future demand hubs
• Pursue acquisition-led growth to consolidate presence in India’s fragmented gas market

Valuation Metrics (Based on DRHP figures)

At the upper end of the price band (₹400):

• P/E (FY25 post-issue): 67.7x
• EV/EBITDA: 53.6x

These valuations are based on FY25 estimates provided by the company in its public disclosures.

Bottom Line

Ellenbarrie Industrial Gases is entering the capital markets with a story anchored in capacity growth, strong operational margins, and a vision to transition into higher-value specialty gases. While PL Capital is not offering coverage or investment advice on this IPO, the data outlined above is derived from official company filings and DRHP disclosures, intended purely for informational purposes.

Investors are encouraged to independently evaluate the offer documents and consult financial advisors before making any investment decisions.