June 23, 2025
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Ellenbarrie Industrial Gases IPO Review * by Paresh Gordhandas, CA & Research Analyst.
IPO Snapshot: Leading Indian Industrial Gases Company
The company stands as India’s largest 100% Indian-owned industrial gases manufacturer, based on installed capacity, revenue, and profitability for FY2024. In a sector largely dominated by multinational giants, this company boasts a rich legacy of over 50 years, making it one of the oldest and most established players in the country.
It produces and supplies a wide array of industrial and specialty gases, including:
- Oxygen, Nitrogen, Carbon Dioxide, Acetylene, Helium, Hydrogen, Argon, and Nitrous Oxide
- Medical Oxygen, Synthetic Air, and Fire-Fighting Gases
- Dry Ice, LPG, Welding Mixtures, and other specialty gases
These offerings cater to a diverse range of end-use industries, from healthcare and manufacturing to energy and infrastructure.
Financial Highlights
- Over the last three fiscal years, both revenue and profit have shown strong, consistent growth.
- The company delivered an impressive Return on Net Worth (RoNW) of 24.97% in FY2024.
- Shares are priced at a P/E ratio of 62.89, which leans toward the higher end, suggesting a premium valuation.
Market Sentiment & IPO Details
- Despite strong fundamentals, the IPO is currently trading at a modest grey market premium of Rs.9 over the issue price of Rs.400.
- Due to the ongoing flood of IPOs in the market, the chances of heavy oversubscription appear limited.
Investment Outlook
Fundamentals: So-so – Strong financial performance but valuation appears stretched
Grey Market Sentiment: Mild interest – Limited listing pop expected
This IPO may suit investors with a longer-term horizon looking to tap into India’s growing industrial and specialty gases segment, though entry at a high valuation warrants caution.
