The Kolkata-based firm, which manufactures and provides industrial, medical, and specialty gases, listed at Rs 492 on the BSE, at a 23% premium over the IPO problem value of Rs 400. On the NSE, the shares debuted at Rs 486, reflecting a premium of 21.5%. Each figures topped the gray market premium estimate of Rs 457.
The Rs 852 crore preliminary public providing, comprising a recent problem of Rs 400 crore and a proposal on the market of Rs 452.53 crore, drew important investor curiosity, with an general subscription of twenty-two.19 occasions. In keeping with NSE information, the IPO acquired bids for 33.52 crore shares towards 1.51 crore shares on supply.
Institutional traders led the cost, with Certified Institutional Consumers (QIBs) subscribing 64.23 occasions their quota, whereas the non-institutional investor section was subscribed 15.21 occasions. The retail class additionally confirmed stable curiosity, subscribed 2.14 occasions regardless of the comparatively excessive ticket dimension.
Anchor traders dedicated Rs 255.76 crore on June 23, with the guide anchored by home mutual funds and insurance coverage firms.
Market cheers monetary power
Investor urge for food seems pushed by Ellenbarrie’s sturdy financials. The corporate posted an 84% year-on-year leap in revenue after tax to Rs 83.29 crore for FY25, with income rising 20% to Rs 348.43 crore. The corporate additionally boasts EBITDA and internet revenue margins of 36% and 27% respectively, thought-about among the many highest within the sector.
“Ellenbarrie Industrial Gases made an emphatic debut on the bourses, itemizing at over Rs 500 — a stable 30% premium to its problem value,” mentioned Harshal Dasani, Enterprise Head at INVasset PMS. “As considered one of India’s oldest industrial fuel producers, with a 50+ yr legacy and 9 operational services throughout southern and japanese India, the corporate instructions a robust presence in oxygen, nitrogen, acetylene, and argon manufacturing.”
Dangers and valuation issues
Regardless of the stellar debut, analysts warning towards overexuberance. “At itemizing, the inventory trades at ~80x FY25 earnings, which is steep on the face of it. However valuation is usually contextual,” Dasani mentioned, noting that Ellenbarrie’s excessive margins assist assist the premium.Nonetheless, the corporate’s concentrated regional footprint and dependence on cyclical industries like metal and healthcare increase questions. “Over 85% of Ellenbarrie’s enterprise comes from repeat bulk patrons — which ensures buyer loyalty but in addition heightens dependence. Any slowdown in metal demand or medical oxygen off-take might sharply have an effect on income,” Dasani mentioned.
Use of proceeds and growth plans
Ellenbarrie intends to make use of the IPO proceeds to repay debt, fund a 220 TPD air separation unit at its Uluberia-II plant, and for normal company functions. Based in 1973, the corporate presently serves greater than 1,800 purchasers throughout metal, prescription drugs, petrochemicals, defence, and railways from its eight manufacturing services.
With a sturdy debut behind it, investor focus will now shift as to whether Ellenbarrie can ship constant efficiency and scale past its present regional strongholds. “The itemizing premium displays investor perception within the firm’s profitability and positioning — however sustaining that confidence will hinge on regular efficiency in a capital-intensive, demand-sensitive trade,” Dasani mentioned.
Additionally learn | Ellenbarrie Industrial Gases shares checklist at 23% premium over IPO value on BSE
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of the Financial Instances)
