Ellenbarrie Industrial Gases Shares List at 23% Premium Over IPO Price on NSE Amid Strong Debut

Ellenbarrie Industrial Gases IPO Listing

The industrial gases manufacturing specialist, Ellenbarrie Industrial Gases Limited, made a solid debut on both BSE and NSE platforms on July 1, 2025. After closing its IPO bidding between June 24 - June 26, 2025, the company commenced trading with an impressive 23% premium on BSE and 21.5% premium on NSE, delivering strong returns to investors despite aggressive pricing concerns. This book-building IPO raised ₹852.53 crore with an outstanding subscription of 22.19 times, reflecting robust investor confidence in the industrial gases sector as the company seeks to expand manufacturing capacity and reduce debt burden through strategic capital deployment.

Ellenbarrie Industrial Gases Listing Details

Ellenbarrie Industrial Gases Limited launched its IPO at ₹400 per share with minimum investment of 37 shares costing ₹14,800. The IPO received excellent response with subscription of 22.19 times - QIB segment leading at impressive 64.23 times, NII at 15.21 times, and retail at 2.14 times, demonstrating strong institutional confidence. The share price listed at ₹492 on BSE delivering solid 23% premium and ₹486 on NSE showing 21.5% premium from issue price of ₹400.

Listing Price: The Ellenbarrie Industrial Gases share price opened at ₹492 on BSE and ₹486 on NSE on July 1, 2025, representing premiums of 23% and 21.5% respectively from the issue price of ₹400, delivering strong gains for investors.

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First-Day Trading Performance Outlook

Ellenbarrie Industrial Gases delivered robust debut performance, beating market expectations with strong premiums on both exchanges. The company, incorporated in 1973, specialises in production and supply of industrial, medical, and specialty gases including oxygen, nitrogen, argon, and carbon dioxide, serving diverse industries from steel to healthcare with comprehensive gas solutions and engineering services.

Growth Drivers and Challenges

Growth Drivers:
Market Leadership: Virtual monopolistic position as Indian industrial gases manufacturer with 52-year operational history
Diversified Portfolio:Comprehensive gas solutions serving steel, pharmaceuticals, healthcare, defence, and space sectors
Strong Financials: Revenue growth of 20% and exceptional PAT growth of 84% in FY25 with healthy margins

Challenges:
Aggressive Valuation: Post-issue P/E of 67.69 and price-to-book value of 20.93 indicate premium pricing
High Debt: Debt-to-equity ratio of 0.32 though manageable, with total borrowings of ₹245.30 crore

Utilisation of IPO Proceeds

Debt Repayment: ₹210.00 crore for repayment of outstanding borrowings to improve capital structure
Capacity Expansion: ₹104.50 crore for setting up 220 TPD air separation unit at Uluberia-II plant
General Purposes: Remaining funds for strategic initiatives and operational requirements

Financial Performance of Ellenbarrie Industrial Gases

Revenue: ₹348.43 crore for FY25, showing 20% growth from ₹290.20 crore in FY24
Net Profit: ₹83.29 crore in FY25, exceptional 84% growth from ₹45.29 crore in FY24
Financial Metrics: ROE of 16.88%, ROCE of 13.71%, excellent PAT margin of 23.90%, and EBITDA margin of 35.12%

Ellenbarrie Industrial Gases represents a compelling investment in the industrial gases sector with strong listing performance delivering 23% premium on BSE. Despite aggressive valuation concerns, the company's monopolistic position, diversified customer base across critical industries, and exceptional financial performance provide significant growth potential in India's expanding industrial landscape.