September 19, 2024
New Delhi, India
IPO Alert
Ellenbarrie Industrial Gases Ltd, a Kolkata-based company, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO includes a fresh issue of ₹400 crore and an offer for sale of up to 1.44 crore equity shares by Promoter Selling Shareholders.
Company Background
Ellenbarrie Industrial Gases is the largest fully Indian-owned industrial gases manufacturer, as of March 31, 2024. The company supplies gases like oxygen, carbon dioxide, acetylene, nitrogen, helium, and medical oxygen, among others, to various industries. It also offers dry ice, synthetic air, and specialty gases, positioning itself as a major player in East and South India.
Financial Performance and Growth
In fiscal 2024, Ellenbarrie saw significant growth, with revenue from operations increasing by 31.38% to ₹269.4 crore from ₹205.1 crore in the previous year. Profit surged by 60.93%, reaching ₹45.2 crore in fiscal 2024, compared to ₹28.1 crore in fiscal 2023. This growth was driven by higher sales of manufactured products and construction contracts.
Use of IPO Proceeds
The company plans to use ₹176.8 crore from the fresh issue to repay outstanding borrowings and ₹130 crore to set up a new air separation unit at its Uluberia-II plant with a capacity of 220 TPD. The remaining funds will be used for general corporate purposes.
Pre-IPO Placement and Book Running
Ellenbarrie may also raise up to ₹80 crore through a pre-IPO placement, which would reduce the size of the fresh issue. The book-running lead managers are Motilal Oswal Investment Advisors, IIFL Securities, and JM Financial. KFin Technologies serves as the registrar for the offer.
As one of India’s leading industrial gas producers, Ellenbarrie’s IPO is set to attract significant attention, especially with its strong growth and strategic expansion plans.
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