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Ellenbarrie Industrial Gases' IPO was fully subscribed on its final day, with strong interest from QIBs and NIIs. The IPO includes a fresh equity issuance and an offer for sale, with proceeds aimed at debt repayment and expansion. Despite a slight dip in grey market premium, SBI Securities recommends subscribing, citing the company's improving financials and strategic growth plans. View More
The initial public offering (IPO) of Ellenbarrie Industrial Gases was fully subscribed on the third and final day of bidding on Thursday. The IPO had received bids for 33.52 crore shares against the total issue size of 1.51 crore shares. The retail investor portion was subscribed just over 2x, the non-institutional investor (NII) category 15 times, and the qualified institutional buyer (QIB) segment 64 times. The overall subscription stood at 22.19 times. In the grey market, the shares were trading at a premium of Rs 18–19, down from Rs 25–26 on Day 2. This implies a decline in the grey market premium (GMP) to around 5% from 6%. Also Read: HDB Financial Services IPO: Should you subscribe? Here's what brokerages say Ellenbarrie IPO details The public issue includes a fresh equity issuance worth Rs 400 crore along with an offer for sale (OFS) of 1.13 crore shares. Ahead of the launch, the company successfully secured Rs 256 crore from anchor investors. Live Events The price band has been set at Rs 380 to Rs 400 per share, with a minimum application size of 37 shares. The shares are proposed to be listed on both the NSE and BSE. The IPO proceeds will be utilised to repay debt amounting to Rs 210 crore, establish a 220 TPD air separation unit at the company’s Uluberia-II plant at a cost of Rs 104.5 crore, and meet general corporate requirements. Eastern India Gases Ltd (EIGL) also plans to commission three new plants by FY26, aiming to increase its total installed capacity from 3,861 TPD to 4,551 TPD. Also Read: These 10 multibagger penny stocks surged 200-570% in last 1 year. Do you own any? About Ellenbarrie Industrial Gases Founded over five decades ago, EIGL manufactures and supplies a wide range of industrial gases such as oxygen, nitrogen, argon, and acetylene, along with specialty gases, medical gases, and cryogenic storage systems. It operates nine facilities across East, South, and Central India, servicing industries like steel, pharmaceuticals, defence, healthcare, and railways. The company reported a 26.7% PAT margin in FY25 with net profit of Rs 83.3 crore, EBITDA margin of 35.8%, and return on equity of 16.9%. At the upper end of the price band, the stock is valued at 62.9x FY25 earnings. Should you subscribe to the Ellenbarrie Industrial Gases IPO? SBI Securities has rated the IPO as Subscribe citing EIGL’s improving margin profile, strong client base, strategic capacity expansion , and attractive valuation compared to listed peers like Linde India. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (You can now subscribe to our ETMarkets WhatsApp channel)