“A gas supplier with blockbuster growth—but an IPO price that might leave you gasping. Ready for a breath of fresh… or expensive air?” 😤
🏭 At a Glance
Ellenbarrie Industrial Gases, founded in 1973, produces and supplies industrial, medical, and specialty gases. FY25 sales hit ₹348.4 crore and profit ₹83.3 crore. The IPO raises ₹852.5 crore at ₹380–400 per share, combining ₹400 crore fresh issue and ₹452.5 crore OFS. Listing July 1, 2025. Promoters sell shares; retail quota and HNI available. 🚀
1. 💡 Why Everyone’s Sniffing Around This IPO
- ⚡ Fast Growth: Sales +20 % and profit +84 % YoY—Popeye vibes when he eats spinach.
- 💰 High Margins: ~30 % profit margin—fatter than your samosa’s filling.
- 👑 Regional Monopoly: Eastern India’s gas king—new entrants need mega budgets.
- 🎈 Product Range: From medical oxygen to party helium—diversified customer base.
2. 💸 How Much It Costs to Join the Party
- 🔖 Price Band: ₹380–₹400 per share.
- 📦 Lot Size: 37 shares minimum (~₹14,060–₹14,800).
- 👛 Retail Max: Up to 13 lots (481 shares, ~₹1.9 lakh).
- 🤑 S-HNI Min: 14 lots (518 shares, ~₹2.07 lakh).
- 🏦 B-HNI Min: 68 lots (2,516 shares, ~₹10.06 lakh).
- 🔥 Pro Tip: Bid at ₹400 (cutoff) to avoid “allotment heartbreak.”
3. 🏗️ What They’ll Do with Your Money
- 🔧 Debt Repayment (₹210 cr): Lowers interest, frees up cash for growth—sleep better at night.
- 🏭 New Plant (Uluberia-II, ₹104.5 cr): Adds 220 TPD capacity—more gas to sell when demand spikes.
- 📈 General Corporate: Working capital & future capex—fuel for expansion.
4. 🏭 Business Snapshot (No Jargon)
- 🚚 Bulk Gases: Oxygen, nitrogen, argon delivered via cryogenic tankers to steel & chemical plants.
- 🔒 Cylinder Gases: Acetylene, CO₂, specialty blends for pharma, labs, and gourmet bars.
- 🔧 Onsite Services: Builds & runs gas plants at customer sites—“gas factory on wheels.”
- 🩺 Medical Equipment: Ventilators, anesthesia machines—kept hospitals breathing in COVID crunch.
5. 📊 Real Numbers, Simple Terms
| Metric | FY23 | FY24 | FY25 | Growth (%) |
|---|---|---|---|---|
| Sales (₹ cr) | 223.7 | 290.2 | 348.4 | +20 % |
| Profit (₹ cr) | 28.1 | 45.3 | 83.3 | +84 % |
| EBITDA Margin | 15 % | 21 % | 31 % | +10 pp |
| PAT Margin | 12.6 % | 15.6 % | 23.9 % | +8.3 pp |
| Debt/Equity | 0.50 | 0.71 | 0.32 | –55 % net |
Key Takeaway: Profit and margins skyrocketed; IPO proceeds slash debt—balance sheet flexes. 💪
6. 📈 Valuation Made Easy
- Post-IPO EPS: ₹5.91
- Peer P/E Range: 35–45× earnings
- Fair-Value Estimate: 5.91 × (35–45) = ₹207–266
Reality Check: IPO at ₹380–400 means 64–68× earnings—that’s a steep premium. 😵
7. ⚠️ Risks Wrapped in Cotton Wool
- 🎈 High Valuation: Paying ₹400 for a ₹250 fair-value share? Keep an oxygen mask ready.
- 📉 Cyclical Demand: Steel & chemical slowdowns can hit volumes—like sudden gas cuts.
- ⚖️ Regulatory Caps: Govt may cap medical oxygen prices again—margins could suddenly deflate.
- ⏳ Plant Delays: New Uluberia-II unit hiccups postpone revenues—traffic jams in monsoon. 🌧️
- 📍 Geographic Focus: Eastern India heavy; if region sneezes, national growth catches a cold. 🤒
8. 😂 Satire Corner: “Gassy IPO Fumes”
- Bubbly P/E: 66× earnings—hotter than your chai on a winter morning. ☕
- Promoter Sell-Off: ₹452.5 cr OFS—like selling concert tickets to your own gig. 🎫
- Cut-Off Cut-Throat: Retail lot costs ₹14,800 at ₹400—worth it? You decide, rockstar. 🤘
- Medical Carryover: Oxygen price caps lurk—regulatory boomerang incoming. 🪃
9. 🌐 Industry Snapshot (Plain Talk)
- Market Growth: India’s gas biz riding industrial & healthcare boom—big runway ahead.
- Big Names: Linde India & Gujarat Gas trade at 20–40× earnings—Ellenbarrie’s valuation towers above.
- High Barriers: Sky-high capex & strict safety rules keep wannabe providers out—good moat. 🏰
10. 🎯 Final Verdict: Inhale or Exhale?
- 👌 Subscribe If:
- You love growth stories and can stomach steep prices.
- You believe in booming industrial & medical demand.
- You don’t mind occasional market gasps.
- 🛑 Wait If:
- You want a bargain nearer ₹207–266.
- You hate overpaying and fear a price correction.
- You prefer sugar-free, jargon-free returns over bubble-tea premiums. 🍹
Bottom Line: Ellenbarrie’s IPO is like a turbocharged bike—thrilling for speedsters, risky for daily commuters. 🏍️
Tags: Ellenbarrie Gas IPO, Industrial Gases, Easy Read, Humour, Fair Value, Retail Investors, HNI Investors, Debt Repayment, Plant Expansion, Risk Factors
✍️ Written by Prashant | 📅 June 23, 2025
