Ellenbarrie Industrial Gases IPO subscribed 8% on Day 1: Check latest GMP

Ellenbarrie Industrial Gases IPO

The Rs 852-crore IPO of Ellenbarrie Industrial Gases saw muted subscription on June 24. The public issue has been subscribed 8 percent on its first day of public bidding.

The initial public offering of the Kolkata-based company received bids for nearly 11.47 lakh shares, as against the offer size of 1.51 crore shares, according to data on the NSE.

Retail investors booked 13 percent of the portion reserved for them, while non-institutional investors (NII) subscribed 5 percent of their reserved portion. Qualified institutional buyers (QIBs) are yet to make any substantial bid for the IPO.

Key things to know about Ellenbarrie Industrial Gases IPO:

The maiden issue of Ellenbarrie Industrial Gases will remain open for public bidding from June 24 to June 26. The company aims to raise up to Rs 852.53 crore through a fresh issue of shares worth Rs 400 crore, and an offer-for-sale of 1.13 crore shares worth Rs 452.53 crore. The Indian company that specialises in the production of industrial, medical, and speciality gases has set a price band of Rs 380-400 per share for the IPO.

Investors can apply for a minimum of 37 shares, requiring a minimum investment of Rs 14,800, and in multiples thereafter. The shares of the company are likely to be listed on stock exchanges BSE and NSE on July 1.

Ellenbarrie Industrial Gases IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of 1.75 percent over the IPO price at Rs 407 apiece, according to Investorgain.

According to IPO Watch, the shares were trading with a GMP of Rs 8 per equity share.

Should you apply?

Bajaj Broking maintained a ‘Neutral’ recommendation of Ellenbarrie Industrial Gases IPO. “The IPO is reasonably valued, supported by visible growth levers such as capacity addition, margin improvement, and reduced leverage. Key strengths include a diversified customer base across core sectors like healthcare, steel, and manufacturing, alongside a growing production footprint,” it said.

“However, investors should be mindful of sector-specific risks like high capital intensity, regulatory challenges, and sensitivity to input costs. Overall, EIGL presents an attractive investment opportunity with a strong operational foundation, scalable growth potential, and improving financial metrics. Execution of its expansion strategy will be crucial to sustaining long-term shareholder value,” it added.

A day before the IPO opened for public subscription, Ellenbarrie Industrial Gases raised Rs 255.8 crore from several anchor investors on June 23. HDFC Mutual Fund, Axis Mutual Fund, Reliance Capital Trustee, Bandhan Mutual Fund, Tata MF, Motilal Oswal Mutual Fund, Edelweiss Mutual Fund, and Union Mutual Fund acquired 36.92 lakh shares worth Rs 147.69 crore in Ellenbarrie via anchor book.

Further, Ashoka Whiteoak ICAV, Eastspring Investments, HDFC Life Insurance Company, Clarus Capital, ICICI Lombard General Insurance, Kotak Mahindra Life Insurance, Citigroup, and Copthall Mauritius Investment also invested in the company through anchor book.

Ellenbarrie intends to utilise fresh issue proceeds for repayment of its debt, setting up of an air separation unit at Uluberia-II plant, and general corporate purposes. The offer-for-sale proceeds will go to the selling shareholders i.e. promoters - Padam Kumar Agarwala, and Varun Agarwal.

Also read: Can Ellenbarrie Industrial Gases IPO pump up gains for investors?

The company manufactures several industrial gases including oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon and nitrous oxide, as well as dry ice, synthetic air, firefighting gases, medical oxygen, and liquid petroleum gas, which are used in various industries such as steel, pharmaceuticals and chemicals, healthcare, engineering and infrastructure, railways, aviation, defence, aerospace, and petrochemicals.

Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are acting as merchant bankers for Ellenbarrie Industrial Gases IPO.

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