Ellenbarrie Industrial Gases IPO: Check IPO Date, Lot Size, Price & Details

About the Company:

Ellenbarrie Industrial Gases Limited, established in 1973 and headquartered in Kolkata, West Bengal, is a leading Indian manufacturer and supplier of industrial, medical, and specialty gases. Its diverse product portfolio includes oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, nitrous oxide, dry ice, synthetic air, and medical equipment such as ventilators and anesthesia workstations. Operating 9 manufacturing facilities across four states: West Bengal, Andhra Pradesh, Telangana, and Chhattisgarh— Ellenbarrie serves over 1,800 customers across multiple sectors in FY25. Its clientele includes steel majors (Jairaj Ispat, Rashtriya Ispat Nigam), pharmaceutical leaders (Dr. Reddy’s, Laurus Labs), healthcare institutions (AIIMS, Chittaranjan Cancer Institute), and government entities in defence, railways, aviation, and petrochemicals. This wide industry reach provides stable and recurring revenue streams. With a total installed capacity of 3,861 TPD as of March 31, 2025, the company is India’s largest 100% Indian-owned industrial gases player by capacity, revenue, and profitability, leveraging a robust logistics network and long-term client contracts to maintain its competitive edge.

Promoters Padam Kumar Agarwala and Varun Agarwal, with over 50 years of combined industry expertise, have steered Ellenbarrie from a regional entity to a national leader, focusing on high-growth sectors like steel, healthcare, pharmaceuticals, and infrastructure. The company’s integrated operations span gas production, distribution, and on-site supply, supported by IoT-enabled monitoring systems for operational efficiency and quality control. Ellenbarrie’s strategic presence in industrial clusters, particularly in East and South India, aligns with India’s manufacturing and infrastructure growth, driven by initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’. Its recent diversification into medical gases and equipment, spurred by post-COVID-19 demand, positions it to capitalize on healthcare sector expansion. The company is investing IPO proceeds to enhance capacity and manage debt, with a new 220 TPD air separation unit planned at Uluberia-II, West Bengal.

IPO Details:

Objects of the Offer:

The net proceeds of ₹400 crore from the fresh issue will be utilized as follows:

Key Strengths and Opportunities

• Established Legacy in Industrial Gases: With over five decades of experience, Ellenbarrie has become a trusted name in the industrial gases sector, Ellenbarrie enjoys a competitive edge in East and South India. Its focus on high-purity specialty gases and medical equipment strengthens its position in niche, high-margin segments.
• Diversified End-User Industries: The company caters to multiple sectors including steel, healthcare (especially medical oxygen), oil & gas, chemicals, pharmaceuticals, and electronics. This sectoral diversity reduces dependency on any single industry and provides a buffer against industry-specific downturns.
• Capacity Expansion and Growth Potential: The company’s planned capacity expansions are timely and positioned to capture growing demand from healthcare and emerging industrial hubs, particularly given the increasing consumption of medical gases post-pandemic.
• Rising Demand for Medical Gases: The healthcare sector's growing reliance on medical oxygen and specialty gases presents a significant long-term opportunity, particularly with rising healthcare infrastructure in Tier 2 and 3 cities.

Risks

• High Revenue Concentration from Key Customers: In FY25, top 10 customers accounted for 47% of gas sales, highlighting high client dependency. While onsite clients have long-term contracts, most packaged gas customers operate without binding agreements. Loss or reduction in key client orders could severely impact revenue. Geographic concentration in East and South India adds further regional risk.
• Hazardous Nature of Business Operations: The production, handling, and transportation of industrial gases involve inherent risks like explosions, leaks, fire, and hazardous exposure. Any accidents could lead to plant shutdowns, fines, reputational damage, lawsuits, and even regulatory actions, significantly affecting operations and financial performance
• Facility Disruption Risk: Ellenbarrie operates 9 facilities concentrated in East and South India, many integrated directly within customer premises. In FY24, its Visakhapatnam plant was shut for 25 days due to machinery failure, resulting in ~4,250 MT production loss. Similar unplanned disruptions can halt operations, invite penalties, trigger supply defaults, and require expensive alternative sourcing to meet customer obligations.
• Historical Delisting: The company was voluntarily delisted from the Calcutta Stock Exchange in 2018. This prior delisting may create negative perception or hesitation among investors, potentially impacting share price and market confidence. Any future decision to delist could affect share liquidity, limit exit opportunities, and reduce investor interest.

Financial Snapshot

*PP is Percentage points 

Peer Comparison:

Conclusions

Ellenbarrie Industrial Gases Limited operates in India’s growing industrial gases market with over five decades of experience and a diversified customer base across sectors like steel, healthcare, pharmaceuticals, and defense. The company’s healthy EBITDA margins (~35%), steady profitability, and recent expansion initiatives reflect operational competence. Its long-term customer contracts and integrated business model offer some degree of revenue visibility.

However, several factors raise concerns from an investment perspective. The company remains geographically concentrated with significant revenue dependency on a handful of large clients. Operational risks—linked to the hazardous nature of industrial gases, potential facility disruptions, and customer concentration—remain material. Compared to its peer Linde India, Ellenbarrie’s smaller scale, limited national footprint, past delisting history, and relatively higher valuations do not offer sufficient comfort at current pricing.

In view of the above, we recommend investors to avoid this IPO for now, given the elevated valuations, business concentration risks, and the absence of a compelling margin of safety at current pricing levels.