The Kolkata-based company, which manufactures and supplies industrial, medical, and specialty gases, listed at Rs 492 on the BSE, at a 23% premium over the IPO issue price of Rs 400. On the NSE, the shares debuted at Rs 486, reflecting a premium of 21.5%. Both figures topped the grey market premium estimate of Rs 457.
The Rs 852 crore initial public offering, comprising a fresh issue of Rs 400 crore and an offer for sale of Rs 452.53 crore, drew significant investor interest, with an overall subscription of 22.19 times. According to NSE data, the IPO received bids for 33.52 crore shares against 1.51 crore shares on offer.
Institutional investors led the charge, with Qualified Institutional Buyers (QIBs) subscribing 64.23 times their quota, while the non-institutional investor segment was subscribed 15.21 times. The retail category also showed solid interest, subscribed 2.14 times despite the relatively high ticket size.
Anchor investors committed Rs 255.76 crore on June 23, with the book anchored by domestic mutual funds and insurance companies.
Market cheers financial strength
Investor appetite appears driven by Ellenbarrie’s strong financials. The company posted an 84% year-on-year jump in profit after tax to Rs 83.29 crore for FY25, with revenue rising 20% to Rs 348.43 crore. The company also boasts EBITDA and net profit margins of 36% and 27% respectively, considered among the highest in the sector.
“Ellenbarrie Industrial Gases made an emphatic debut on the bourses, listing at over Rs 500 — a solid 30% premium to its issue price,” said Harshal Dasani, Business Head at INVasset PMS. “As one of India’s oldest industrial gas manufacturers, with a 50+ year legacy and nine operational facilities across southern and eastern India, the company commands a strong presence in oxygen, nitrogen, acetylene, and argon production.”
Risks and valuation concerns
Despite the stellar debut, analysts caution against overexuberance. “At listing, the stock trades at ~80x FY25 earnings, which is steep on the face of it. But valuation is often contextual,” Dasani said, noting that Ellenbarrie’s high margins help support the premium.Still, the company’s concentrated regional footprint and dependence on cyclical industries like steel and healthcare raise questions. “Over 85% of Ellenbarrie’s business comes from repeat bulk buyers — which ensures customer loyalty but also heightens dependence. Any slowdown in steel demand or medical oxygen off-take could sharply affect revenue,” Dasani said.
Use of proceeds and expansion plans
Ellenbarrie intends to use the IPO proceeds to repay debt, fund a 220 TPD air separation unit at its Uluberia-II plant, and for general corporate purposes. Founded in 1973, the company currently serves more than 1,800 clients across steel, pharmaceuticals, petrochemicals, defence, and railways from its eight production facilities.
With a robust debut behind it, investor focus will now shift to whether Ellenbarrie can deliver consistent performance and scale beyond its current regional strongholds. “The listing premium reflects investor belief in the company’s profitability and positioning — but maintaining that confidence will hinge on steady performance in a capital-intensive, demand-sensitive industry,” Dasani said.
Also read | Ellenbarrie Industrial Gases shares list at 23% premium over IPO price on BSE
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
