Ellenbarrie Industrial Gases Files DRHP with SEBI for IPO

19 Sep 2024 , 11:34 AM

India’s one of the oldest industrial gases companies; Ellenbarrie Industrial Gases has filed its draft papers with Securities & Exchange Board of India. The issue comprises a fresh issue of equity shares worth ₹400 crore and an offer-for-sale of 1.44 crore shares by promoters.

As per DRHP, promoters Padam Kumar Agarwala, and Varun Agarwal will be offloading 72.13 lakh equity shares.

The company aims to use the net proceeds from fresh issue towards repayment of debt, setting up of air separation unit at Uluberia-II plant and for other general corporate purposes. Post IPO, the company aims to become debt-free.

Kolkata-based Ellenbarrie is the largest fully Indian-owned industrial gases company by installed manufacturing capacity as of FY24. It ranks among the leading industrial gas producers in East and South India.

With a diverse client portfolio, Ellenbarrie supplied products to 1,836 customers in fiscal 2024. Some of the top clients of the company are Jairaj Ispat, Rashtriya Ispat Nigam, Dr. Reddy’s Laboratories, Laurus Labs, AIIMS, West Bengal Medical Services Corporation, GMM Pfaudler, Air India Engineering Services, Jupiter Wagons, Hindustan Shipyard, and other major oil marketing PSUs.

The company has reported a surge in profit by 61% year-on-year to ₹45.3 crore in the fiscal year ending March 2024. However, in FY23, profit had declined by 58% to ₹28.1 crore compared to FY22. Revenue for FY24 grew by 31.4% to ₹269.5 crore YoY, but in FY23, it had dropped by 16.1% to ₹205.1 crore compared to FY22.

Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the merchant bankers to Ellenbarrie IPO.