Ellenbarrie Industrial Gases Limited – IPO Reviews 2025, Analysis and Notes

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Key Highlights

Company Background:

Ellenbarrie Industrial Gases Limited, established in 1973, is a Kolkata-based company engaged in the manufacturing and distribution of industrial and medical gases. It supplies oxygen, nitrogen, argon, and other specialty gases to key sectors such as steel, chemicals, infrastructure, and healthcare. The company operates through a network of production plants, storage facilities, and delivery systems, ensuring reliable and timely service. Backed by decades of technical expertise, Ellenbarrie focuses on safety, efficiency, and customer-centric solutions across eastern and southern India.

Market Opportunity:

India’s industrial gases market is poised for strong growth, driven by rising demand from manufacturing, infrastructure, and healthcare sectors. Rapid industrialization and government focus on “Make in India” are accelerating usage of gases like oxygen, nitrogen, and argon. The healthcare sector continues to show structural demand for medical oxygen post-COVID. Green hydrogen and clean energy transitions are opening new application areas for industrial gases. Eastern and southern India, where Ellenbarrie is active, remain underpenetrated and offer high growth potential. Increasing investments in steel, cement, and chemicals further support long-term volume growth. This positions Ellenbarrie to benefit from both core demand and emerging trends.

Well-Established Player with Diversified Offerings and Strong Customer Stickiness:

 It is a leading manufacturer of industrial and medical gases with over five decades of experience, well-positioned to benefit from growing demand across core sectors like steel, chemicals, infrastructure, and healthcare. The company offers a comprehensive portfolio including oxygen, nitrogen, argon, and other specialty gases, serving a wide range of end-use industries. Its established production and distribution network across eastern and southern India enables reliable supply and operational flexibility. Over the years, Ellenbarrie has built long-standing relationships with marquee customers, resulting in recurring business and stable cash flows, underpinned by consistent offtake and long-term supply arrangements.

Strategic Growth Plans to Strengthen Market Presence and Diversify Revenue Streams:

Company is aims to drive future growth through a multipronged strategy. The company plans to expand its portfolio by introducing more specialty gases and targeting additional end-use industries such as electronics, food processing, and pharmaceuticals. It also intends to foray into plant manufacturing, complementing its existing project engineering capabilities and enhancing its integrated offerings. By creating a balanced mix of merchant and onsite business models, Ellenbarrie seeks to improve asset utilization and build long-term supply partnerships. Additionally, the company is actively exploring strategic acquisitions and alliances to expand its geographic reach, enhance capabilities, and enter high-growth segments.

Financials:

The company’s reported a strong financial recovery in FY24, with revenue rising 31.4% YoY to ₹269.48 crore. EBITDA came in at ₹61.53 crore, reflecting a healthy margin of 22.8%. Profit after tax grew to ₹45.29 crore from ₹28.14 crore in FY23, driven by improved operational efficiency. Return ratios also strengthened, with ROE at 11.05% and ROCE at 12.22%. The performance underscores the company’s improving profitability and cost discipline.

Key Risks:

Ellenbarrie faces concentration risk due to dependence on a few large customers, where any loss could impact revenues. Being in a capitalintensive industry, project delays or cost overruns may affect financial stability. The business also relies heavily on uninterrupted supply of electricity and raw materials. Regulatory changes around safety or environmental norms could raise compliance costs. Additionally, rising competition may exert pressure on pricing and profitability.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Motilal Oswal Investment Advisors Limited

• IIFL Capital Services Ltd

• JM Financial Limited

Registrar to the Offer

• KFin Technologies Limited

Research Analyst

Rajan Gupta
rajan.gupta1@religare.com

Research Team

Ajit Mishra – ajit.mishra@religare.com
Abhijeet Banerjee – abhijeet.banerjee@religare.com
Gaurav Sharma – gauravsharma2@religare.com
Ashwani Harit – ashwani.harit@religare.com
Divya Parmar – divya.parmar@religare.com
Vinay Kalani – vinay.kalani1@religare.com
Rajan Gupta – rajan.gupta1@religare.com

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• Author: Religare Broking
• Last Updated: June 25, 2025