Ellenbarrie Industrial Gases, a Kolkata-based firm, receives SEBI approval for its IPO to raise ₹400 crore. The funds will aid debt repayment and plant expansion.
Ellenbarrie Industrial Gases Limited, a Kolkata-based company known for producing and distributing a wide range of industrial gases such as oxygen, nitrogen, helium, and medical oxygen, has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company, which caters to several sectors including healthcare, aviation, and industrial manufacturing, aims to raise funds from the Indian stock market to fuel its growth.
Founded in Kolkata, Ellenbarrie Industrial Gases manufactures not only industrial gases but also products like dry ice, welding mixtures, fire-fighting gases, and specialty gases. Some of its notable clients include major organizations such as Vizag Steel, Dr. Reddy’s Laboratories, Air India Engineering Services, the Indian Armed Forces, and AIIMS.
The IPO will comprise a fresh issue of shares worth up to ₹400 crore, with a face value of ₹2 per share. Additionally, there will be an offer-for-sale (OFS) component of up to 1.44 crore equity shares. The OFS will involve the sale of 72 lakh shares each by the promoters, Padam Kumar Agarwala and Varun Agarwal. Ellenbarrie Industrial Gases is also considering raising ₹80 crore through a pre-IPO placement.
The company plans to allocate ₹176.8 crore from the funds raised to repay or prepay some of its outstanding borrowings. It also aims to invest ₹130 crore in setting up a new air separation unit at the Uluberia-II plant, which will have a capacity of 220 tons per day (TPD). The remaining amount will be used for general corporate purposes.
Motilal Oswal Investment Advisors Ltd, IIFL Securities Limited, and JM Financial Ltd are acting as the book-running lead managers for the public issue, while KFin Technologies Ltd is the registrar to the offer.
This move will open new growth opportunities for Ellenbarrie Industrial Gases as it strengthens its position in the Indian industrial gases market.
