Ellenbarrie Industrial Gases Plans IPO to Raise Rs 400 Crore

Ellenbarrie Industrial Gases has filed draft papers with Sebi for an IPO, comprising a Rs 400 crore fresh issue of equity shares and 1.44 crore shares as an offer for sale by promoters. The IPO proceeds will partially fund debt payment, new plant setup, and general corporate purposes.

Ellenbarrie Industrial Gases, a Kolkata-based company with a 50-year legacy, has filed draft papers with the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO). The IPO aims to mobilize funds through a fresh issue of equity shares valued at Rs 400 crore and an offer for sale (OFS) of up to 1.44 crore equity shares by its promoters, Padam Kumar Agarwala and Varun Agarwal.

As per the Draft Red Herring Prospectus (DRHP), Ellenbarrie plans to use Rs 176.8 crore from the proceeds for debt repayment, Rs 130 crore for setting up an air separation unit at its Uluberia-II plant, and the remaining funds for general corporate purposes. The company also hinted at a pre-IPO placement to raise up to Rs 80 crore, which would reduce the fresh issue size if completed.

Ellenbarrie, one of India's oldest industrial gas manufacturers, caters to industries such as steel, pharmaceuticals, chemicals, healthcare, and aerospace. The company operates eight facilities across West Bengal, Andhra Pradesh, Telangana, and Chhattisgarh, with notable clients including Vizag Steel and AIIMS. Its revenue grew by 31.38% in fiscal 2024, while profits surged by 61%. The industrial gases market in India is anticipated to reach USD 1.75 billion by 2028.

(With inputs from agencies.)